Sham Transactions Cannot Be Used to Avoid Indiana Use Tax

Monday, April 3rd, 2017

 
 
Indiana Deparatment of Revenue.
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The Indiana Department of Revenue recently ruled that a taxpayer improperly avoided use tax on the purchase of an RV by entering into a sham transaction.

The taxpayer purchased, used, and stored an RV in Indiana but titled the RV to a Montana LLC. The sole purpose of the LLC was to hold title to the RV.

Indiana ignores sham transactions when assessing taxes. Sham transactions are those entered into solely to escape tax. The sole purpose of titling the RV in Montana was to escape tax. As a result, the Department ignored the Montana title and assessed tax for the use and storage of the RV in Indiana.

https://www.ttrus.com/sites/default/files/in/20170329-IR-045170157NRA.pdf


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TTR has a website that companies subscribe to and use daily. This website provides a list of everything that can be bought or sold in the U.S. It provides simple answers to whether buying or selling these items is taxable (subject to a sales tax or other tax), and it provides all the legal authority to support these tax answers.

TTR likes to keep things simple and fun, which is why it has great people who provide help to clients on any support questions they have about transaction tax issues.

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