A case involving the FTB’s ability to scrutinize the documentation behind Enterprise Zone vouchers has been scheduled on March 6 for argument in the California Supreme Court after a long delay. The following is the summary of the matters at hand from the Court:
Dicon Fiberoptics v. Franchise Tax Bd., S173860. (173 Cal.App.4th 1082; Los Angeles County Superior Court; BC367885.) Petition for review after the Court of Appeal reversed the judgment in a civil action. This case presents the following issues:
(1) When an employer claims an income tax credit under Revenue and Taxation Code section 23622.7 for wages allegedly paid to a “qualified employee” in an enterprise zone, does the certifying voucher obtained from a designated public agency constitute conclusive proof the employer is entitled to the tax credit? (2) If not, does the voucher constitute prima facie evidence that the employer is entitled to the credit and shift to the Franchise Tax Board the burden of proving that the employee was not a “qualified employee”?