Riley B'S, Inc. v. State Board of Equalization

Riley B’s, Inc., plaintiff and appellant (appellant), filed a complaint against the State Board of Equalization of the State of California (Board), seeking a refund of state sales and use taxes previously paid in the sum of $3,439.87 plus interest. On April 7, 1975, the cause came on regularly for trial. No oral testimony was heard, as the matter was submitted upon a written stipulation of facts, and certain additional exhibits. The case presented the general question of whether Board was required to accept as conclusive the books and records of a taxpayer which were inconsistent with, and contrary to, additional information furnished by the taxpayer.

The trial court held that Board could base a tax assessment upon all the information obtained from the taxpayer, and that such an assessment was correct and proper. Accordingly, judgment was entered in favor of Board, and the corporation filed its notice of appeal.

Statement of Facts

During the period October 1, 1966, through December 31, 1969, appellant operated three bars with adjoining premises in the City of Victorville, California. Each bartender’s shift began with a separate cash reserve, and receipts at the end of…