New York Codes, Rules and Regulations
Title 20 - DEPARTMENT OF TAXATION AND FINANCE
Chapter IV - Sales And Use And Other Miscellaneous Taxes
Subchapter A - Sales And Use Taxes
Part 540 - Expiration Of Certificates Of Authority And Registration Renewals
Section 540.3 - Refusal to issue a certificate of authority
Universal Citation: 20 NY Comp Codes Rules and Regs ยง 540.3
Current through Register Vol. 46, No. 12, March 20, 2024
(a) The department may refuse to issue a new certificate of authority to any person (applicant) who has filed a new certificate of registration for any of the reasons described in section 539.3(a) of this Title. Such reasons for refusal are also set forth in section 1134(a)(4)(B) of the Tax Law.
(1) any tax imposed under the Tax Law or
any related statute has been finally determined to be due from the applicant
and has not been paid in full; or
(2) a tax due under articles 28 and 29 of the
Tax Law has been finally determined to be due from an officer, director,
partner or employee of the applicant in his/her capacity as a person required
to collect tax on behalf of the applicant and has not been paid in full;
or
(3) a tax due under articles 28
and 29 of the Tax Law has been finally determined to be due from an officer,
director, partner or employee of the applicant (as such persons are described
in section
539.2[c][2][iii]
of this Title) in his/her capacity as a person required to collect tax on
behalf of any entity other than the applicant and has not been paid in full;
or
(4) the applicant has been
convicted of a crime under the Tax Law within one year from the date on which
the certificate of registration is filed by the applicant,; or
(5) an officer, director, partner or employee
of the applicant (as such persons are described in section
539.2[c][2][iii]
of this Title) has in his/her capacity as a person required to collect tax for
the applicant or in his/her capacity as a person required to collect tax for
any other person, been convicted of a crime provided for in the Tax Law within
one year from the date on which such certificate of registration was filed by
the applicant; or
(6) a shareholder
owning more than 50 percent of the number of shares of stock of a corporate
applicant (entitling the holder thereof to vote for the election of directors
or trustees) was the owner of more than 50 percent of the number of shares of
stock of another corporation at the time any tax imposed under the Tax Law or
any related statute was finally determined to be due from such other
corporation and such tax has not been paid in full; or
(7) a shareholder owning more than 50 percent
of the number of shares of stock of a corporate applicant (entitling the holder
thereof to vote for the election of directors or trustees) was the owner of
more than 50 percent of the number of shares of stock of another corporation at
the time such other corporation was convicted of a crime under the Tax Law but
only if such conviction is within one year from the date on which such
certificate of registration was filed by the applicant; or
(8) a certificate of authority issued to the
applicant has been revoked or suspended under section 1134(a)(4)(A) of article
28 of the Tax Law, but only if such revocation or suspension occurred within
one year from the date on which such applicant filed a certificate of
registration.
As used herein, the term related statute means any tax imposed by any law, ordinance or resolution enacted pursuant to the authority of the Tax Law or article two-E of the General City Law, and administered by the Department of Taxation and Finance;
(b) Notification of proposed refusal to issue a certificate of authority. A notice of proposed refusal to issue a certificate of authority, issued to an applicant who has filed a certificate of registration renewal, shall:
(1) be sent by
certified or registered mail to the registrant or applicant to the address on
its certificate of registration renewal filed with the department;
(2) state the basis for such proposed refusal
to issue a certificate of authority;
(3) clearly notify the applicant that the
impending refusal may be protested by filing an application for a hearing or a
request for a conciliation conference; and
(4) notify the applicant that the notice of
proposed refusal to issue a certificate of authority shall be final unless such
applicant shall have filed an application for a hearing or a request for
conciliation conference within 90 days of the date of such notice.
Disclaimer: These regulations may not be the most recent version. New York may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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