Dicon Fiberoptics, Inc., Plaintiff and Appellant v. Franchise Tax Board, Defendant and Respondent

Summary

The court held that the Franchise Tax Board may independently audit an enterprise-zone hiring tax-credit claim and require the taxpayer to establish that an employee satisfies the statutory definition of a qualified employee. A governmental certification or voucher is neither conclusive nor prima facie proof of eligibility and does not shift the burden of proof to the Franchise Tax Board. The court therefore reversed the Court of Appeal's contrary holding while affirming the judgment in all other respects.