California – Technology Transfer Agreement – Lucent Trial Date (9.23.13)

ZSA Special Report – The California State Board of Equalization released their June 2013 Sales and Use Tax Litigation Roster setting the trial date for Lucent I and Lucent II for September 23, 2013.    Per the June 2013 Sales and Use Tax Litigation Roster (See link below) page 12 and 13:

“On December 21, 2010 the court issued its order consolidating Lucent Technologies, Inc v. BOE (Lucent I), LASC Case No. BC402036, and Lucent Technologies, Inc. v. BOE (Lucent II), LASC Case No. BC448715.   Lucent I is designated as the lead case.  The final settlement conference and trial dates were vacated.  The final status conference is set for August 16, 2013.  The trial date is set for September 23, 2013.”

Case Facts:                                     

Lucent I – LASC Case No. BC402036

  • Audit/Tax Period 1/1/95 – 12/31/99
  • Amount $3,480,913.12
  • Issue(s): (1) Does the sale of software qualify for technology transfer agreement treatment; (2) have the plaintiffs established that the engineering and support charges are related to sales of tangible personal property; and (3) did plaintiffs use the prior agreement to calculate their tax liability for the subject quarter. (Revenue and Taxation Code sections 6012 and 6010.9; Regulations 1502 and 1507)

Lucent II – LASC Case No. BC448715

  • Audit/Tax Period 2/1/96 – 9/30/00
  • Amount $22,493,838.00 (May 2013 Litigation Roster listed the Amount as $276,832,998.67).
  • Issue(s): Does the sale of software qualify for technology transfer agreement treatment.  (Revenue and Taxation Code sections 6012 and 6010.9; Regulations 1502 and 1507)

For Further Information:

http://www.boe.ca.gov/legal/LitigationRoster/2013_06/SUT_ROSTER.pdf

http://www.boe.ca.gov/legal/LitigationRoster/2013_05/SUT_ROSTER.pdf