333 A.2d 63 | Conn. Super. Ct. | 1974
The plaintiff operated a catering business in the town of Greenwich, Connecticut, from 1949 to 1970. In the course of conducting this business, she relied completely on a professional accountant for the filing of all tax returns. On his *374
advice that a Connecticut sales tax return was not required for her business, she did not file such a return for any of the years 1949 through 1970, although it was required under state statutes. See Sup. 1947, § 330i, as amended, Rev. 1949, § 2092; General Statutes §
At the present time, §
The state does not question the plaintiff's honesty and innocence in this matter and admits that she has cooperated with its audit in every way. The court finds that she relied completely on her accountant in this matter, that such reliance was reasonable, and that she thought that she had filed all required tax returns with the internal revenue service and the states of New York and Connecticut.
Evidence and testimony have been submitted to the court as to what percentage of the plaintiff's gross receipts, as defined in §§
The defendant would have this court find that it has little or no power to grant any relief in this matter and that it can merely determine whether the defendant has properly applied the law. For this court so to hold would give little or no meaning to the words "grant such relief as may be equitable" as they appear in §
There is no provision in the Connecticut statutes limiting the period of time within which the state can collect sales taxes in a case where no tax return was ever filed. Accordingly, in a case such as this, the state could recover all sales taxes due from the inception of the plaintiff's business in 1949 to the time of sale in 1970. The defendant has elected to seek recovery for the last six years only. No *376
explanation is forthcoming in his argument as to the reason why he selected that particular period. While a tax is a debt, it is so essentially different from a debt in the ordinary sense of the word that the Statute of Limitations as to debts is not applicable.Cromwell v. Savage,
Under §§
Accordingly, given the circumstances of this case, where there is no question of fraud or intent to evade, where the plaintiff reasonably relied on what she thought was competent professional advice, where any attempt at this time for her to collect any taxes due from her former customers is out of the question, where the state tax department knew or should have known through the plaintiff's filing of her unincorporated business tax returns of the existence of her business and its nature, where she is precluded from any other form of succor except through this appeal, this court finds that equity demands that the state be limited to a period of three years in recovering sales taxes from the plaintiff, and judgment may enter accordingly. In addition,