SALT Report 3072 – Recently enacted legislation in California provides that a person who sells, purchases, installs, or uses any automated sales suppression device, zapper or phantom-ware with the intent to avoid or evade the payment of any tax due or collected is guilty of a misdemeanor.
Anyone found guilty of using this type of device will be subject to a fine of up to $5,000 for three or fewer offenses; or up to $10,000 for four or more offenses, and imprisonment in for up to three years, or both. In addition to the fines, the person will be liable for all taxes, fees, interest, and penalties due as a result of the use of one of these devices.
However, the bill provides an exception for a person who possesses automated sales suppression devices, zappers, or phantom ware for use in the development of hardware or software designed to combat tax evasion.
Assembly Bill 781 was approved by the Governor on October 4, 2013.
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