TEI comments on Georgia Department of Revenue proposed amendments to rule 560-12-1-.16.

• Author: Fenwick, Jamie
• Position: Tax Executives Institute

On March 1, 2016, TEI submitted a letter to the Georgia Department of Revenue commenting on the Department's proposed amendments to Rule 560-12-1-.16, Georgia's "Direct Pay Reporting" regulation. TEI urged the Department to remove the provisions denying direct pay permit holders their statutory right to interest on refunds, as the proposed amendment conflicts with Georgia law and principles of sound tax policy.

As president of Tax Executives Institute (TEI), I write to comment on the Department of Revenue's proposed amendments to Rule 560-12-1-.16, Georgias "Direct Pay Reporting" regulation (Proposed Amendments). Specifically, TEI urges the Department to remove the provisions in the Proposed Amendments denying direct pay permit holders their statutory right to interest on refunds.

About Tax Executives Institute

TEI was founded in 1944 to serve the professional needs of in-house tax professionals. Today, the organization has 56 chapters in North and South America, Europe, and Asia, including Georgia. Our approximately 7,000 members represent 2,800 of the largest companies in the world, many of which either are resident or conduct business in your state.

As the preeminent association of in-house tax professionals worldwide, TEI has a significant interest in encouraging the uniform and equitable enforcement of tax laws, and reducing the cost and burden of tax administration and compliance to the benefit of taxpayers and government. TEI is committed to maintaining a system that works--one building upon the principle of voluntary compliance, consistent with sound tax policy, easy to administer, and efficient.

Comments on the Proposed Amendments

Direct pay permits allow holders to accrue and pay sales and use taxes directly to the Department. Direct pay permits also relieve vendors from the responsibility for collecting tax on sales made to permit holders on qualifying transactions. Direct pay permits thus create efficiency for Georgia taxpayers, particularly manufacturers for whom it may not be clear at the time of purchase whether a specific item is taxable, and the Department, which only need audit permit holders.

The Proposed Amendments provide that all direct pay permits issued prior to October 1, 2016, will expire on December 31, 2016; taxpayers must apply for new direct pay permits; and permit holders must "agree" to waive interest on refunds of taxes remitted on purchases made with the new permit to obtain a replacement permit...