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Article #1791

The failure of CALIFORNIA Board of Equalization - Part I

#1791
From: Tuan Nguyen
Date: Thu, 14 Jul 1994 22:14
83 lines
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Greetings,
When you finish reading this article, you'd know the
followings:
    - How to buy cars without paying sale tax(up to 8.25%)

    - The loopholes from the Board of Equalization in
        State of California    
            - Relate to DMV
            - Computer systems under Board of Equalization
                and DMW
            - How responsible government workers(civil servants)
                at Board of Equalization.

    - Why you would have to pay high income tax, sale tax
        and tax will go up - not down in the future.

    - Who are the losers (basically you, tax payers) and who would
        exploit the system(crooks, government workers).

    - The government workers, and their covers up to avoid
        the embarrassments to the State Agencies.

    - Who, the politician, would work for you and the adminstration
        problem

For each reference I list, I provide additional information
like phone, date, document so you can call and verify.
Here is the story:

In April 1993, I approached the office of Assemblyman
Gil Ferguson(Please see reference (1) at the end)
in Newport Beach to ask for help to report
the fraud/stealing the sale taxes collected
by used car autodealers. Two of my friends who tried to
report these frauds/stealing to the Board of Equalization,
El Monte office in California(Los Angeles County) were kicked out
of the office as the Board of Equalization did not care
to investigate. (The answer was that they got the same
pay anyway).

It took a few more letters to make the matter reach
the Board of Equalization in Los Angeles in July 1993.
(Please see reference (2) at the end).

The basic flaws in the system are:
    - There is no linkage or cross-database between the
        DMV and Board of Equalization, i.e., the DMV
        would not know whether the dealer pays the sale
        taxes on the cars that register to DMV.
        Please see reference (3).

    - For an individual, in order to do car registration,
        You'd have to pay the sale tax when you do title
        transfer, i.e., when you purchase the car you
        have leased or when you buy the salvaging cars.
        (Please see reference (4).)
        The car dealer would not have to pay at DMV when
        they register the cars, but pay at Board of
        Equalization later. However, many found out
        they would not have to pay B & E, and government
        does not know anything and they don't go after the
        crooks either.

    - Since the DMV records are on the micro-fiche, and
        the records even don't have the sale prices on
        these cars, the car dealer would not have to pay
        the required the sale tax as State of California
        Board of Equalization does not know how much to
        collect and is lazy to check.

    - The sale price reported can be anything, i.e., 
        well below the current market price.
        for example: $5,200 for HONDA 1992 CIVIC in 1993.
        Please see reference (5).
        B & E knows this, and accepts this kind of practice
        as they don't care the tax payer money. They got
        paid anyway.


To be continued - please part II so you can know how not
to pay the sale tax !!!
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From: tan@netcom.com (Tuan Nguyen)
Subject: The failure of CALIFORNIA Board of Equalization - Part I
Message-ID: <tanCsyB3y.8q4@netcom.com>
Organization: NETCOM On-line Communication Services (408 261-4700 guest)
Distribution: usa
Date: Thu, 14 Jul 1994 22:14:22 GMT
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