N.Y. Comp. Codes R. & Regs. Tit. 20 § 540.3 - Refusal to issue a certificate of authority

(a) The department may refuse to issue a new certificate of authority to any person (applicant) who has filed a new certificate of registration for any of the reasons described in section 539.3(a) of this Title. Such reasons for refusal are also set forth in section 1134 (a)(4)(B) of the Tax Law.

(1) any tax imposed under the Tax Law or any related statute has been finally determined to be due from the applicant and has not been paid in full; or

(2) a tax due under articles 28 and 29 of the Tax Law has been finally determined to be due from an officer, director, partner or employee of the applicant in his/her capacity as a person required to collect tax on behalf of the applicant and has not been paid in full; or

(3) a tax due under articles 28 and 29 of the Tax Law has been finally determined to be due from an officer, director, partner or employee of the applicant (as such persons are described in section 539.2[c][2][iii] of this Title) in his/her capacity as a person required to collect tax on behalf of any entity other than the applicant and has not been paid in full; or

(4) the applicant has been convicted of a crime under the Tax Law within one year from the date on which the certificate of registration is filed by the applicant,; or

(5) an officer, director, partner or employee of the applicant (as such persons are described in section 539.2[c][2][iii] of this Title) has in his/her capacity as a person required to collect tax for the applicant or in his/her capacity as a person required to collect tax for any other person, been convicted of a crime provided for in the Tax Law within one year from the date on which such certificate of registration was filed by the applicant; or

(6) a shareholder owning more than 50 percent of the number of shares of stock of a corporate applicant (entitling the holder thereof to vote for the election of directors or trustees) was the owner of more than 50 percent of the number of shares of stock of another corporation at the time any tax imposed under the Tax Law or any related statute was finally determined to be due from such other corporation and such tax has not been paid in full; or

(7) a shareholder owning more than 50 percent of the number of shares of stock of a corporate applicant (entitling the holder thereof to vote for the election of directors or trustees) was the owner of more than 50 percent of the number of shares of stock of another corporation at the time such other corporation was convicted of a crime under the Tax Law but only if such conviction is within one year from the date on which such certificate of registration was filed by the applicant; or

(8) a certificate of authority issued to the applicant has been revoked or suspended under section 1134(a)(4)(A) of article 28 of the Tax Law, but only if such revocation or suspension occurred within one year from the date on which such applicant filed a certificate of registration.

As used herein, the term related statute means any tax imposed by any law, ordinance or resolution enacted pursuant to the authority of the Tax Law or article two-E of the General City Law, and administered by the Department of Taxation and Finance;

(b) Notification of proposed refusal to issue a certificate of authority. A notice of proposed refusal to issue a certificate of authority, issued to an applicant who has filed a certificate of registration renewal, shall:

(1) be sent by certified or registered mail to the registrant or applicant to the address on its certificate of registration renewal filed with the department;

(2) state the basis for such proposed refusal to issue a certificate of authority;

(3) clearly notify the applicant that the impending refusal may be protested by filing an application for a hearing or a request for a conciliation conference; and

(4) notify the applicant that the notice of proposed refusal to issue a certificate of authority shall be final unless such applicant shall have filed an application for a hearing or a request for conciliation conference within 90 days of the date of such notice.

Notes

N.Y. Comp. Codes R. & Regs. Tit. 20 § 540.3