California Code of Regulations › Title 10 - Investment › Chapter 13 - Governor's Office of Business and Economic Development › Article 1 - California Competes Tax Credit › Section 8040 - Notice to and Duties of the Franchise Tax Board

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) Upon approval by the committee, GO-Biz
				shall provide the negotiated agreements to the Franchise Tax Board in the form
				and manner agreed to by the Franchise Tax Board and GO-Biz. The Franchise Tax
				Board shall also have access to the application and any and all documentation
				provided by the applicant or prepared or relied on by GO-Biz or the committee
				in the decision to approve the agreement and allocate a credit. The Franchise
				Tax Board shall also have access to any and all information and documentation
				provided by the applicant after a credit is allocated.
(b) Pursuant to Revenue and Taxation Code
				sections
				17059.2(d)
				and
				23689(d),
				for any business other than a small business, the Franchise Tax Board shall
				review the books and records of all applicants allocated a credit pursuant to
				the agreement to ensure compliance with the terms and conditions of the
				agreement between the applicant and GO-Biz.
(c) In the case of an applicant that is a
				small business, a review of the books and records of the applicant may be made
				when, in the sole discretion of the Franchise Tax Board, a review of those
				books and records is appropriate or necessary in the best interests of the
				state. If the Franchise Tax Board exercises its discretion to review the books
				and records of an applicant that is a small business, the review shall be
				conducted to ensure compliance with the terms and conditions of the written
				agreement between the applicant and GO-Biz.
(d) The form and manner of the review of the
				books and records to ensure compliance with the terms of the agreement shall be
				at the sole discretion of the Franchise Tax Board. These reviews will not be
				treated as an audit of the tax return under Part 10.2 (commencing with section
				18401) of the Revenue and Taxation
				Code and the regulations thereunder, and will not preclude the Franchise Tax
				Board from auditing any issue in any taxable year, including a taxable year
				included in the term of the agreement.
(e) If during the review of the books and
				records, Franchise Tax Board determines there is a possible material breach of
				the written agreement by the applicant, the Franchise Tax Board shall notify
				GO-Biz and provide detailed information regarding the basis for that
				determination.
(f) Upon approval by
				the committee to recapture a credit, GO-Biz shall provide the terms and amount
				of recapture to the Franchise Tax Board in the form and manner agreed to by the
				Franchise Tax Board and GO-Biz.
1. New section
				  filed 2-20-2014 as an emergency; operative 2-20-2014 (Register 2014, No. 8). A
				  Certificate of Compliance must be transmitted to OAL by 8-19-2014 or emergency
				  language will be repealed by operation of law on the following
				  day.
2. Readoption of 2-20-2014 action filed on 8-18-2014 as an
				  emergency, including repealer of section
				  8040 and renumbering and amendment
				  of former section
				  8070 to new section
				  8040; operative 8-18-2014
				  (Register 2014, No. 34). A Certificate of Compliance must be transmitted to OAL
				  by 11-17-2014 or emergency language will be repealed by operation of law on the
				  following day.
3. Readoption of 8-18-2014 action 11-17-2014 as an
				  emergency; operative 11-17-2014 (Register 2014, No. 47). A Certificate of
				  Compliance must be transmitted to OAL by 2-16-2015 or emergency language will
				  be repealed by operation of law on the following day.
4. Certificate
				  of Compliance as to 11-17-2014 order transmitted to OAL 12-31-2014 and filed
				  2-5-2015 (Register 2015, No. 6).
Note: Authority cited: Sections
					 17059.2
					 and
					 23689,
					 Revenue and Taxation Code. Reference: Sections
					 17059.2,
					 18410.2
					 and
					 23689,
					 Revenue and Taxation Code.