Jerry L. Crabtree - Page 18

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             DABT conducted a beverage surcharge tax audit for the                    
             period July 1990 through December 1993.  The DABT auditor                
             noted that Crabtree Investments did not keep very good                   
             records and kept only sketchy inventory records.  The                    
             auditor used the wholesale distributors’ reports (DABT                   
             Summary of Purchases) to determine the amount of alcohol                 
             Crabtree Investments purchased.  The DABT Summary of                     
             Purchases is a listing  of all items sold by alcohol                     
             distributors to a particular licensee.  Florida law                      
             requires all wholesalers/distributors to report to the                   
             DABT all alcohol purchases by a licensee/retailer.                       
                  Second, the Florida Department of Revenue conducted                 
             a sales tax audit for the period November 1989 through                   
             July 1995.  The sales tax auditor used an indirect method                
             of reconstructing sales for taxable year 1993.  She                      
             obtained the amount of alcohol purchased from the DABT                   
             Summary of Purchases and marked up the purchases to arrive               
             at the selling price.  The auditor found that for 1993                   
             “there was a $325,000 difference between the sales that                  
             they reported to the Department of Revenue and the sales                 
             as they were marked up based on AB & T’s numbers.”                       
                  Petitioners gave the sales tax auditor deposit slips,               
             weekly reports, and cash register tapes.  The auditor found              
             that the original records of Crabtree Investments were not               

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Last modified: May 25, 2011