Court of Appeals Uphols the Tax Tribunal Determination of Adequate Records
In Plum Hollow Market Inc. v. Department of Treasury, Michigan Court of Appeals, No. 305505, October 16, 2012, an assessment for additional Michigan sales tax was upheld against a grocery and liquor retailer because the taxpayer failed to maintain adequate records.
The taxpayer did not keep its daily cash register receipts (Z-rings), nor did it maintain records of inventory items that were made into prepared foods. In light of the inadequacy of the taxpayer's records, the auditor was permitted to use other sources of information, such as supplier invoices, to determine the amount of tax due.