California – Bill to Crack Down on Criminal Tax Evasion Sent to Governor

SALT Report 2973 – A Bill that could help California recoup some of the $9 billion lost annually due to unpaid taxes has been sent to the Governor for his signature.  Assembly Bill 576 authorizes the creation of a “Team” to be made up of members from the California State Board of Equalization, the Franchise Tax Board, the Employment Development Department, and the Department of Justice. The Team will be called the Revenue Recovery and Collaborative Enforcement Team.

Together, the Team will focus on the criminal tax evasion activities that occur in underground economies by creating and implementing a data sharing system that will be used by each state agency. The Team will use the data sharing system to investigate and criminally prosecute anyone who is found guilty of evading state sales, use, excise, income, or employment tax laws.

The BOE claims that California’s underground economy robs the state of approximately $9 billion annually through illegal activities such as selling counterfeit goods, human trafficking, collecting but not remitting sales and use taxes, and smuggling tobacco products or other goods into California without paying the required taxes.

Assembly Bill 576 was sent to Governor Brown who is expected to sign it into law.

For Further Information

California State Board of Equalization – News Release

California State Legislature – Assembly Bill 576