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did not produce any records or other evidence of pay
telephone receipts.
Agents from two State taxing authorities audited
Crabtree Investments during the years in issue. First, the
Florida Department of Business Regulation, Division of
Alcoholic Beverages and Tobacco (DABT), conducted a
beverage surcharge tax audit for the period July 1990
through December 1993. The beverage surcharge tax is a tax
on consumption of alcohol on the premises. As applied in
these cases, the surcharge tax applies to bar sales but not
to package store sales. Second, the Florida Department of
Revenue conducted a sales tax audit for the period November
1989 through July 1995. The sales tax audit was initiated
after a referral from the DABT.
OPINION
Unreported Income of Crabtree Investments
The first issue for decision is whether Crabtree
Investments underreported its gross income for 1992, 1993,
and 1994. Petitioners expressly concede the adjustments
involving vending machine receipts and flower sales. The
remaining adjustments at issue are: Bar sales, package
store sales, income from cover charges, income from food
sales, income from cola, juice, and coffee, and income from
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