                                 CODE OF VIRGINIA

ASSESSMENT BASED ON ESTIMATE (§ 58.1-618)

A. If any dealer fails to make a return as provided by this chapter, or a return
that is false or fraudulent, it shall be the duty of the Tax Commissioner to
make an estimate for the taxable period of the retail sales or distributions of
such dealer, or of the gross proceeds from leases of tangible personal property,
or taxable services by such dealer, or the cost price of all articles of
tangible personal property imported by such dealer for use or consumption in the
Commonwealth, or storage by such dealer of tangible personal property to be used
or consumed in the Commonwealth, and assess the tax, plus such penalties as are
provided in this chapter. The Tax Commissioner shall give such dealer ten
days&#8217; notice in writing requiring such dealer to appear before him with
such books, records, and papers as he may require relating to the business of
such dealer for such taxable period. The Tax Commissioner may require such
dealer or the agents and employees of such dealer to give testimony or to answer
interrogatories under oath administered by the Tax Commissioner respecting such
sale, distribution, lease, use, consumption, or storage of tangible personal
property, or taxable services, or the failure to make a return thereof as
provided in this chapter. If any dealer fails to make any such return or refuses
to permit an examination of his books, records, or papers, or to appear and
answer questions within the scope of such investigation, the Tax Commissioner is
hereby authorized to make the assessment based upon such information as may be
available to him and to issue a memorandum of lien under &#xA7; 58.1-1805 for
the collection of any such taxes and penalties so found to be due. The
assessment so made shall be deemed prima facie correct.

B. If the dealer has imported tangible personal property and fails to produce an
invoice showing the sales price of the articles, or the invoice does not reflect
the true or actual sales price as defined in this chapter, then the Tax
Commissioner shall ascertain, in any manner feasible, the true sales price and
assess and collect the tax, with penalties, to the extent such have accrued, on
the true sales price as ascertained by him. The assessment so made shall be
deemed prima facie correct.

C. In the case of the lease of tangible personal property, if the consideration
given or reported by the dealer, in the judgment of the Tax Commissioner, does
not represent the true or actual consideration, then the Tax Commissioner is
authorized to fix the same and assess and collect the tax thereon in the same
manner as above provided, with penalties to the extent such have accrued. The
assessment so made shall be deemed prima facie correct.

HISTORY: Code 1950, § 58-441.28; 1966, c. 151; 1984, c. 675; 1985, c. 221.