Of course, it will be reduced on appeal.
Posted on 08/15/2008 1:02:05 PM PDT by SmithL
California taxpayers could be on the hook for a staggering $388 million because of a state tax collection agency's vigorous pursuit of a former California taxpayer.
In a case that one tax expert called "completely unprecedented," jurors in a Clark County, Nevada District trial awarded Las Vegas inventor Gilbert P. Hyatt $250 million in punitive damages Thursday for the "outrageous conduct" of Franchise Tax Board auditors in an investigation that began in 1993.
The award was on top of $138.1 million jurors gave Hyatt last week for "invasion of privacy" and "emotional distress."
. . . "As far as I know, and I've been around a long time, there has never been an award of tort damages against the Franchise Tax Board in any kind of audit,"
(Excerpt) Read more at sacbee.com ...
If “California taxpayers” would rein in their government, they might not be on the hook for huge jury awards. New show: “Revenooers Gone Wild.” Nah -
Hyatt filed suite against the board in 1998 after auditors determined he owed the state $7.4 million in income taxes from 1991-1992. Hyatt, who holds more than 70 patents, contends that he moved to Las Vegas in October 1991 and did not earn millions from his patents until after he left California.
Does Nevada have an income tax?
Those are tax dollars well spent IMO. Let them think twice next time.
Of course, it will be reduced on appeal.
Hyatt's suit alleged that board auditors went through his garbage and mailbox, spread the word he was being audited to his business associates, and sent letters containing his Social Security number to third parties that included newspapers and doctors that had never treated Hyatt.
The tactics were portrayed as part of efforts to harass and intimidate Hyatt into paying a $7.4 million tax bill that has grown to $49 million with interest and penalties.
Criminals. All government agents/employees directly involved in this case should have their salaries garnished for the next decade, and the Franchise Tax Board needs to suffer an enormous operating budget penalty. California needs to immediately slash all government spending across the board - not try to bridge the budget gap by dropping all pretense of legality in their acts of theft (yes, I know the case is a decade old, but nothing has changed). Serial abusers need to be thrown in jail and forever barred from working for any state or federal government entity, in any capacity, for the rest of their lives.
I think it does not have an income tax.
After reading the article, I think someone should go to prison for extortion.
Nevada does not have an income tax.
How dare he move from the state and deny it tax revenue! Doesn't he know he belongs to the state.
I hate my state’s government... too bad California is such a beautiful place to live. I hope this teaches the state to stay out of people’s business, but I doubt it. On the other hand, a quarter billion is a bit much and with the fiscal state we’re in... uh, lose-lose.
Nevada collects their taxes a quarter at a time.
“a $7.4 million tax bill that has grown to $49 million with interest and penalties. “
What do you want to bet they withold the taxes owed?
Cal believed it was owed money because we all work for Big Brother. The state is the boss. How dare any citizen think otherwise. And yes...the thugs who harrassed this man should be sent to prison for many, many years. Anyone wanting a preview of an Obamessiah regime should look at the facts of this case.
I will try a stab at leftist logic:
“He lived here most of his life and invented his patents while under the benevolent protection and care of Nanny California.
Then, when he lucks out and hits it big, he jilts the State and moves to low-tax resident-marraige breaker Nevada.
He owes the State of California our rightful share!”
As I recall, didn't California claim that they had the right to tax the income of people who retired in California, even after they had left the state? Weren't those laws struck down by the Supreme Court?
Disgusting abuse of governmental powers. All who prosecuted and persecuted this guy should face significant jail time.
{I'm sorry, I can't help it!}
ALL YOUR 'BERRIES' [as in 'nads] ARE BELONG TO US....
This "inventor" targeted himself by moving out of state so they went after him.
The idea, which is always quite popular in California, is to tax "out of state" resources to pay current California bills.
That way the locals are relieved of a part, albeit a small part, of the cost of the government they think they need.
I anticipate the next step to be taken in Nevada is one for "collection". The inventor will file a notice with every sheriff in the state to stop and detain each and every California government employee so that he can initiate partial recovery.
Popping lots of popcorn for this one.
Agreed.
But that’s as likely as him seeing much of the $388 million.
Yes, that’s what CA is claiming. They already lost in the federal courts regarding retiree pensions.
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