| Home | Free Articles for Your Site | Submit an Article | Advertise | Link to Us | Search | Contact Us |
This site is an archive of old articles


vertical line

Can I Avoid Sales Tax On My Aircraft By Registering It In a Delaware Corporation?


Where should I register my aircraft?

Many people believe that they can set up an LLC in Delaware or any other location outside California in order to avoid sales or use tax in California. The state where the LLC or corporation is registered has nothing to do with legally avoiding tax in California. In fact, as I have mentioned before many times, donít leave things to chance.

If the State of California decides to, they can charge you with fraud. The following section of law will be their support.

6485.1. 50 percent penalty. Any purchaser of a vehicle, vessel, or aircraft who registers it outside the State of California for the purpose of evading the payment of taxes due under this part shall be liable for a penalty of 50 percent of any tax determined to be due on the sales price of the vehicle, vessel, or aircraft.

Why donít I just become an aircraft dealer so I can buy aircraft without paying tax?

Everyone knows someone who routinely brags about this resale scheme. Well the following sections of law explain the truth.

6094.5. Improper use of certificate. Except as provided in Sections 6012.8 and 6012.9:

(a) Any person, including any officer or employee of a corporation, who gives a resale certificate for property which he or she knows at the time of purchase is not to be resold by him or her or the corporation in the regular course of business for the purpose of evading payment to the seller of the amount of the tax applicable to the transaction is guilty of a misdemeanor punishable as provided in Section 7153.

(b) Any person, including any officer or employee of a corporation, who gives a resale certificate for property which he or she knows at the time of purchase is not to be resold by him or her or the corporation in the regular course of business is liable to the state for the amount of tax that would be due if he or she had not given such resale certificate. In addition to the tax, the person shall be liable to the state for a penalty of 10 percent of the tax or five hundred dollars ($500) whichever is greater, for each purchase made for personal gain or to evade the payment of taxes.

Submitted by:

Thomas A. Alston

Mr. Alston is the CEO of AERO&MARINE Tax Professionals. http://www.aeromarinetaxpros.com. He has written many California sales and use tax articles for the following publications, The Successful Accountant, Inflight USA, The Log, San Diego Business and Aviation Journal, Van Nuys Business and Aviation Journal, Orange County Business and Aviation Journal, Sacramento Business Journal, Latitude 38, and other legal and professional journals. He is the publisher/editor of a publication called ďTAX MATTERS,Ē which is dedicated to keeping California owners of aircraft and vessels informed about taxes.





ARTICLE CATEGORIES

Auto and Trucks
Business and Finance
Computers and Internet
Education
Family
Finances
Food and Drink
Gadgets and Gizmos
Health
Hobbies
Home Improvement
Humor
Kids and Teens
Legal
Marketing
Men
Music and Movies
Online Business
Parenting
Pets and Animals
Politics and Government
Recreation and Sports
Relationships
Religion and Faith
Self Improvement
Site Promotion
Travel and Leisure
Web Development
Women
Writing



http://www.articlesurfing.org/legal/can_i_avoid_sales_tax_on_my_aircraft_by_registering_it_in_a_delaware_corporation.html
Copyright © 1995-2016 Photius Coutsoukis (All Rights Reserved).