ORDERS:
FINAL CONSENT ORDER
This matter is before the Administrative Law Judge Division (ALJD) pursuant to an agency
transmittal by the South Carolina Department of Revenue (Department) dated July 31, 2003. In its
final determination issued on June 30, 2003, the Department found that there were three regulatory
violations in connection with the Catawba Indian Nation bingo operation during the audit period
January 2000 through June 2001. The Department further found that the Catawba Indian Nation
(Tribe) had underpaid taxes on its bingo operation. The Tribe has disputed some of the Department’s
findings. However, in order to settle the dispute, the parties have agreed to the following terms,
which resolve the matter and which are incorporated into this Final Consent Order:
1.The Tribe admits that its quarterly reports and monthly bingo tax returns, filed during the
four quarters of 2000, contained inconsistencies that violated the record keeping and
reporting requirements of Section 12-21-4100, S.C. Code Ann. For this violation, the
Tribe agrees to pay a fine of $500.
2.The Tribe admits that it failed to maintain one bingo checking account and otherwise
comply with the requirements of Section 12-21-4090, S.C. Code Ann., during the period
in question. For this violation, the Tribe agrees to pay a fine of $500.
3.The Tribe admits that it deposited non-bingo funds into its designated bingo account in
violation of Section 12-21-4090(I), S.C. Code Ann, during the period in question. For
this violation, the Tribe agrees to pay a fine of $500.
4.The Department agrees to accept the above stated fines, which total $1,500, in full
satisfaction of the above stated regulatory violations. The parties agree that this
settlement does not affect or resolve any regulatory violations occurring after June 30,
2001.
5.With regard to the alleged underpayment of taxes owed pursuant to Section 27-16-110(C)(3), S.C. Code Ann., for year 2001, the Tribe does not admit such underpayment;
however, in order to settle the dispute without further legal action, the Tribe agrees to
pay, and the Department agrees to accept, $1,418 in full satisfaction of tax, interest and
penalties for all periods covered by the audit.
6.The parties further agree not to disparage one another, or to make any public comment
with respect to the underlying audit, including the original audit period January 1999
through June 2001, except to confirm that the parties have entered into this settlement
agreement. This nondisparagement clause shall not prevent the Department from
conducting audits, investigating future or ongoing regulatory violations, making proposed
assessments with respect to regulatory violations, or responding to requests for
information under the Freedom of Information Act. The Department shall not initiate
public disclosure.
The parties freely and voluntarily entered into this agreement. Further, the parties agree,
and I so find, that this constitutes a full, fair and just resolution of this matter.
It is therefore ORDERED that this matter is DISMISSED WITH PREJUDICE.
IT IS SO ORDERED.
___________________________________
C. DUKES SCOTT
Administrative Law Judge
September 24, 2003 |
