Salt Report 1324 – In an effort to combat revenue loss resulting from unregulated and/or illegal sales of goods and services, members of the California Board of Equalization, state legislators, and industry leaders have joined forces to recoup some of the $60 billion stolen annually from Californians through illegal underground economies.
The term “underground economy” refers to individuals and businesses that deal in cash and/or use other means to conceal their business activities, identities, and tax liabilities from licensing, regulatory, and taxing agencies. Underground economies include business activities that range from the sale of stolen or counterfeit products to the exploitation of victims through human trafficking.
Therefore, the Centralized Intelligence Partnership (CIP) was formed and will be made up of representatives from the Board of Equalization, the Franchise Tax Board, the Employment Development Department and the Office of the Attorney General. This collaborative effort would significantly increase the State’s efficacy in recapturing revenue lost to businesses operating illegally in California.
The BOE estimates that the Centralized Intelligence Partnership could generate up to one billion dollars annually in additional revenue for California, while at the same time level the playing field for California businesses.
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