Taxation: State Board of Equalization: Franchise Tax Board: burden of proof.

Existing law imposes various taxes that are administered and collected by the State Board of Equalization and the Franchise Tax Board. Existing law provides that the taxpayer has the burden of proof in court proceedings for a refund of tax, while the state agency has the burden of proof with respect to its assertion of fraud or intent to evade penalties. This bill would provide, for purposes of the taxes and fees administered by the State Board of Equalization, that the board shall have the burden of proof, by clear and convincing evidence, in sustaining its assertion of penalties for intent to evade or fraud in a civil proceeding. This bill would also provide, with specified exceptions, that the State Board of Equalization and the Franchise Tax Board shall have the burden of proof in a court or administrative tax proceeding with respect to any factual issue relevant to ascertaining the tax liability of a taxpayer who has established that it is a cooperating taxpayer. This bill would also provide that its provisions shall not subject a taxpayer to unreasonable search or access to records in violation of the law.