But we did have more success with this afternoon, when we spoke with Commissioner of Income Tax, Kent Clare. He told us there are certain aspects of the case that he is unable to discuss due to confidentiality under the Income and Business Tax Act. He did say however that this assessment is not new, and it was done legitimately under the Income tax Act.
Clare told us the Department's contention is that taxes were due on business that the Coye's conducted but didn't pay tax on, and that is how the assessment was made. As to the sum, which Saldivar calls oppressive, arbitrary and exorbitant, Clare told us that the assessment was done under the law. He said that the claim was lodged with the Registrar of the Supreme Court a short while after the assessment was made. The assessment was made under section 111 (3) of the Income and Business Tax Act. That section reads, "Where it comes to the notice of the Commissioner that a person or entity has not reported or disclosed any receipts which ought to have been reported or disclosed, such unreported receipts shall...be taxed at the rate of 50% of such receipts, in addition to any other penalties leviable under this Act..."
As we told you, the Estate of Michael Coye, and Melonie Coye's Company, Money Exchange International, has 6.5 million dollars in cash holdings, and Income Tax says that they owe 3.212 million in receipts that have not been paid. That's just under the 50% mark, and Clare told us that this assessment represents the accurate figure that the Coye's owe.
Clare told us that the procedure for the Coye's and their attorney is to make representation to his office outlining with proof that they have paid the appropriate taxes, and that they don't owe anything. Until that time, the Department has to collect on what they believe is owed to them.
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