Sec. 13-12. Extent of liability; limitations thereof; delay of transfer for audit; audit request; effect of audit.
A. Any liability for taxes due from a successor business arising out of business succession under this article shall, subject to Subsections B and C, be limited to:
1. The amount shown on the records of the City as due from the original business as of the transfer date; plus
2. Any other amount due that is readily ascertainable as due to the City by means of a reasonable examination of the books and records of the original business supplemented by reasonable inquiry into the existence and extent of any such obligation or of an estimate made pursuant to Chapter 14
B. If, upon presentation to the Collector of a duly executed release form as prescribed by Section 13-10, and preliminary examination of the tax data related to the original business, the Collector determines that a business succession audit examination of the original business is necessary to determine its tax liability, the Collector shall be authorized to delay transmission of the liability information to the successor business and to inform both the original and successor business of the Collector’s intent to conduct an audit.
C. If a notice to the business involved is provided under Subsection B, and if the audit is completed or terminated within thirty days and the notice of assessment is delivered to both original and successor business within sixty days of the notice of intent to conduct such business succession audit, the notice of assessment shall create a lien and liability for all taxes due for the audit period, which lien and liability shall further attach, as of the transfer date, to the assets of the successor business as in Section 13-7, whether or not the transfer precedes or follows the notice of assessment.
D. If, in connection with or subsequent to a transfer to a successor corporation in the course of which no request for tax liability information has been presented to the Collector by a duly executed release under Section 13-10 in the case of a voluntary transfer or by a properly documented request under Section 13-10 in the case of an involuntary transfer, and a transfer is completed, the successor business or transferee, by reason of its failure to secure information from the Collector relative to the tax liability of the original business, shall be deemed to have consented to the acceptance of liability and to the attachment of a lien against the property and assets of the successor or transferee, arising from any tax liability of the original business.
E. A notice of intent to conduct a business succession audit, to be effective under subsections B or C, shall be issued by the Collector within fifteen calendar days of the receipt by the Collector of the request for information pursuant to Section 13-10 (Ord. No. G-2075, § 1; Ord. No. G-2976, § 3; Ord. No. G-3192, § 4; Ord. No. G-5349, § 1, 2009)