1 BEFORE THE CALIFORNIA STATE BOARD OF EQUALIZATION 2 5901 GREEN VALLEY CIRCLE 3 CULVER CITY, CALIFORNIA 4 5 6 7 8 REPORTER'S TRANSCRIPT 9 FEBRUARY 25, 2015 10 11 SALES AND USE TAX APPEAL HEARING 12 APPEAL OF 13 HEZGHIAHOO AHARON INVESTMENT, INC. 14 NO. 611158 (AR) 15 AGAINST PROPOSED ASSESSMENT OF 16 SALES AND USE TAX 17 18 19 20 21 22 23 24 25 26 Reported by: Kathleen Skidgel 27 CSR No. 9039 28 1 1 P R E S E N T 2 For the Board Jerome E. Horton of Equalization: Chairman 3 4 Sen. George Runner (Ret.) Vice Chairman 5 6 Fiona Ma, CPA Member 7 8 Diane L. Harkey Member 9 10 Yvette Stowers Appearing for Betty T. 11 Yee, State Controller (per Government Code 12 Section 7.9) 13 Joann Richmond 14 Chief Board Proceedings 15 Division 16 For Board of 17 Equalization Staff: Lisa Burke Business Taxes 18 Specialist III Legal Department 19 20 For the Department: Nenita DeLaCruz Hearing Representative 21 Kevin Hanks 22 Chief, Headquarters Operations Division 23 Robert Tucker 24 Assistant Chief Counsel 25 For Petitioner: Joseph Boodaie 26 Representative 27 Hezghia Eshaghian Taxpayer 28 ---oOo--- 2 1 5901 GREEN VALLEY CIRCLE 2 CULVER CITY, CALIFORNIA 3 FEBRUARY 25, 2015 4 ---oOo--- 5 MR. HORTON: Let us reconvene the meeting 6 of the Board of Equalization. 7 Ms. Richmond, what is our next matter? 8 MS. RICHMOND: Our next matter is item C9, 9 Hezghiahoo Aharon Investment, Inc. 10 Please come forward. 11 MR. HORTON: As the taxpayer comes forward, 12 Ms. Cummins, would you please introduce the issues 13 in this case. 14 MS. BURKE: Good morning, Chairman Horton, 15 Members. Ms. Cummins wasn't available to be here 16 today, so I'm Lisa Burke for the Appeals Division. 17 MR. HORTON: My apologies, Ms. Burke. 18 MS. BURKE: The issues in this case are the 19 amounts of unreported taxable sales and unreported 20 taxable cigarette rebates. 21 MR. HORTON: Welcome to the Board of 22 Equalization. You have ten minutes to make your 23 presentation and we would ask that you commence with 24 your introduction for the record. 25 Please be advised that we will go to the 26 Department; the Department will have ten minutes as 27 well. Then we'll return and allow you five minutes 28 on rebuttal. 3 1 At your convenience. Sir, I would ask that 2 you come forward if you intend to testify. And pull 3 the mic just a little bit closer so that we can make 4 sure that your testimony is on record. 5 MR. BOODAIE: Good morning. My name is 6 Joseph Boodaie, B like boy-o-o-d like David-a-i-e. 7 I'm the accountant for the company. And the name of 8 the company, the short form is HAI. And it's a long 9 name so it's better that we just stick with that, 10 HAI, Inc. 11 To -- to make it short -- I know it has 12 been a long day for all of you so far. All I wanted 13 to ask is to ask for a 30/30/30 on this case because 14 for some unfore- -- unforeseen matters that he had a 15 death in the family, he was not able to bring all 16 the documentation. 17 And all I wanted to say is, first, there 18 are two issues; one is the taxable item, and the 19 other is the cigarettes. 20 We do agree with the cigarettes part. The 21 cigarette rebates, we do agree with it. So we don't 22 have any dispute on that. 23 On the rest, I wanted to ask the Board if 24 you can give us 30/30/30, that I can prepare him 25 mentally, psychologically, and also he can give me 26 the documents. 27 I already talk -- before this Board, I 28 already talked to Miss DeLaCruz, Nenita, and I 4 1 promised her that hopefully within one month, as 2 soon as I get documents, I would send it to her. 3 Maybe we don't need the next Board hearing if we can 4 settle it among ourselves. If we need it, then 5 within that 30/30/30 we going to come to some kind 6 of conclusion. 7 MR. HORTON: Okay. Let me go to the 8 Department, just for the record, with your 9 permission, sir. 10 Department? 11 MR. HANKS: Mr. Horton -- Mr. Chairman and 12 Members, Ms. DeLaCruz did meet with the taxpayer and 13 discussed some differences that appear in the third 14 quarter of 2009. That's where the majority of -- of 15 the discussion, I think, relates. 16 Petitioner indicates that they have 17 additional information for us to review. We would 18 not be opposed to -- to taking the time, a 30/30/30, 19 and reviewing that information and providing a 20 recommendation to the Appeals staff. 21 So we're comfortable doing that. But 22 we're -- we're also prepared to -- to present our 23 case today if -- if you'd ought for us to do that. 24 MR. HORTON: Thank you very much. 25 Question of the taxpayer, just for 26 clarification. And I ask this question to determine 27 your desire and your options. We can put this over 28 to the next hearing and it would shorten the 5 1 30/30/30 as relates to the interest calculation. 2 Because for every day this isn't final and isn't 3 paid, there is calculation of interest. But I 4 defer, as always, to -- to you as to how you'd 5 prefer to handle it and how much time you think you 6 need in order to resolve the matter. 7 MR. BOODAIE: Just one comment to make if I 8 may? 9 MR. HORTON: Sure. 10 MR. BOODAIE: This is my turn? All right. 11 I -- first, I really appreciate that you 12 accepted our offer that you give us a 30/30. But in 13 regards to the matter that you said that you wanted 14 to make your presentation today -- I apologize -- I 15 object to that because if our information is not 16 complete -- 17 MR. HORTON: Sir, I need you -- 18 MR. RUNNER: That's not the question. 19 MR. HORTON: I need you to answer the 20 question. Which would you prefer? What is more 21 convenient for you, 90 days, or I think it's 22 somewhere around 35, 40 days? Would you prefer to 23 have a 90-day period process? Or would you like to 24 have it expedited? 25 MR. BOODAIE: Can I talk to the taxpayer? 26 Very quick. He's next to me. I just -- 27 MR. HORTON: Oh, okay. 28 MR. BOODAIE: Which one do you prefer? You 6 1 want 90 days or you want to expedite to make it 35 2 days? Which one do you feel more comfortable that 3 you think can have everything? 4 MR. HORTON: If you want it confidential, 5 sir, I would -- 6 MR. BOODAIE: That's fine. 7 MR. HORTON: -- suggest you step away -- 8 MR. BOODAIE: That's fine. It's not 9 confidential. 10 MR. HORTON: Okay. 11 MR. BOODAIE: That's just his discretion. 12 He's the one who's going to give the documents and 13 it's not something -- 14 Sure, go ahead. 15 MR. ESHAGHIAN: You can ask for the 90 days 16 then (inaudible). 17 MR. BOODAIE: Okay. 18 MR. HORTON: So be it. 19 MR. BOODAIE: I'm sorry. 20 MR. HORTON: Member -- 21 So we've heard from the Department -- we've 22 heard from the taxpayer, we've heard from the 23 Department. We've heard you on rebuttal. 24 Member Harkey moves a 30/30/30. Second 25 by -- 26 MR. RUNNER: And -- and continue the 27 hearing. 28 MR. HORTON: -- Member Runner. 7 1 MR. RUNNER: 30/30/30 and continue the 2 hearing. 3 MR. HORTON: And continue the hearing. 4 Without objection, Members, such will be 5 the order. 6 Thank you very much. 7 MR. BOODAIE: I appreciate it. Thank 8 you. 9 MR. ESHAGHIAN: Thank you. 10 MR. HORTON: Let me say to both of you 11 guys -- 12 MR. BOODAIE: Sure. 13 MR. HORTON: -- I really, really appreciate 14 you coming together and having these discussions and 15 trying to mitigate and resolve your issues prior to 16 coming to the Board. That's always extremely 17 helpful and healthy to all parties. So thank you 18 very much. 19 MR. BOODAIE: I appreciate it. 20 MR. ESHAGHIAN: Thank you. 21 ---oOo--- 22 23 24 25 26 27 28 8 1 REPORTER'S CERTIFICATE 2 3 State of California ) 4 ) ss 5 County of Sacramento ) 6 7 I, KATHLEEN SKIDGEL, Hearing Reporter for 8 the California State Board of Equalization certify 9 that on February 25, 2015 I recorded verbatim, in 10 shorthand, to the best of my ability, the 11 proceedings in the above-entitled hearing; that I 12 transcribed the shorthand writing into typewriting; 13 and that the preceding pages 1 through 8 constitute 14 a complete and accurate transcription of the 15 shorthand writing. 16 17 Dated: April 14, 2015 18 19 20 ____________________________ 21 KATHLEEN SKIDGEL 22 Hearing Reporter 23 24 25 26 27 28 9