Oklahoma Administrative Code › Title 710 - Oklahoma Tax Commission › Chapter 20 - Alcohol and Mixed Beverages › Subchapter 5 - Mixed Beverages › Section 710:20-5-8 - Liability and audit of mixed beverage tax permit holder for gross receipts tax upon sale, preparation or service of all alcoholic beverages purchased or received

Current through Vol. 41, No. 20, July 1, 2024
(a)
Liability
				in general.
Every mixed beverage tax permit holder or any other person
				transacting business subject to the gross receipts tax shall be liable for the
				tax upon the gross receipts from such beverages (on the basis of the number of
				drinks available for sale, preparation, or service from the total alcoholic
				beverages received). Each permit holder or other person shall be liable for the
				gross receipts tax upon any and all disposition by his or her agents or
				employees or any other persons on the premises of the mixed beverage tax permit
				holders or other person, except upon seizure or other disposition of the
				alcoholic beverage by employees of the ABLE Commission, Tax Commission, or
				other law enforcement agencies in the execution of their official duties.
				[
See:
37A O.S. § 5-105]
(b)
Audit procedures.
(1) Upon audit of the books and records of a
				mixed beverage establishment for gross receipts tax, it shall be assumed that
				spirits have been dispensed at the average rate of one and one-half fluid
				ounce, except for drinks with recipes calling for more than one type of spirit
				or for double portions of spirits, or upon reasonable evidence of a different
				rate of use.
(2) Wines will be
				presumed to have been dispensed at the average rate of six ounces (6 oz.) per
				serving. The Tax Commission may use an average rate greater or less than those
				set out in this rule upon reasonable evidence of a different rate of
				use.
(3) In addition, a deduction
				may be allowed from the gross receipts tax liability determined by an audit or
				other investigation of the books and records of a mixed beverage tax permit
				holder, for alcoholic beverages that are:
(A)
				consumed in food as verified by the audit;
(B) destroyed due to breakage for which the
				permit holder has retained the container; or that portion thereof that has the
				unbroken seal; or for partial bottles destroyed by breakage for which the
				permit holder has completed a breakage affidavit listing the date of the
				occurrence, the brand and type of liquor, the size bottle, the approximate
				amount left in the bottle by 1/10ths, and the cause of the breakage. The
				affidavit shall be signed by the permit holder and two witnesses;
(C) stolen or destroyed by a disaster such as
				a fire or flood, provided that reasonable evidence is provided to support a
				claim. Reasonable evidence might include a copy of a police or sheriff's crime
				report; or an insurance claim detailing the inventory destroyed by brand, size,
				and type of liquor;
(D) not
				consumed, and exist or existed, at the close of a taxable period in question,
				provided that the amount and nature of the unconsumed inventory has been
				verified by agents of the Tax Commission, ABLE Commission, or verified by
				invoice to a mixed beverage permittee or wholesaler approved to purchase the
				inventory by the ABLE Commission. Partially filled bottles which are not
				included in a transferred inventory should be verified by a Tax Commission or
				ABLE Commission agent or agents.
(4) If an establishment was selling alcoholic
				beverages prior to the starting date of the audit period being used by the
				Commission in its audit, the establishment shall be required to furnish the
				Commission with a beginning inventory of all liquor, wine, and beer on hand if
				an ending inventory is offered for audit purposes. When the permittee is unable
				or unwilling to furnish such an inventory, then no beginning or ending
				inventories shall be considered for the audit period used and the audit will be
				conducted solely on the taxpayer's purchases made during the audit
				period.