Section: GENERAL ACCOUNTING
|Section 3000 Policies|
Policy Number: 3801.01
Policy Title: Tax Administration
Policy Effective Date: June 5, 2012
Last Revision Date: June 5, 2012
(see revision history)
It is the policy of the CSU to comply with tax law. Under the direction of the Assistant Vice Chancellor / Controller, Financial Services, the Chancellorís Office Financial Systems, Statutory Reporting, and Tax Administration unit will develop and administer the CSU-wide tax compliance program that includes policies and procedures, and provides general coordination and guidance on tax matters to campuses. Each campus must prepare written procedures to implement this policy.
To ensure consistent application of tax law to transactions, the Chancellor’s Office will provide guidance to the system in connection with the interpretation of federal and state tax statutes and regulations to which the CSU is subject. Where the tax treatment of any given transaction, particularly where it is monetarily significant or continuous, is in question, the campus must consult with appropriate Chancellor’s Office staff to ensure the CSU’s tax obligations are met.
The Campus CFO or his/her delegate is responsible for implementing this policy on a campus level. An individual must be designated as the campus’ key contact for coordination on tax matters with the Chancellor’s Office Systemwide Tax Coordinator.
The campus CFO or his/her delegate must:
- Arrange for the preparation, documentation and implementation of tax compliance procedures.
- Adhere to all other tax filing requirements, including but not limited to sales and use tax, non-resident alien tax and submission of the 1099 information return, but in fulfilling these obligations will follow the policies communicated by the Chancellor’s Office.
- Ensure that campus transactions are regularly examined to determine their potential tax reporting and payment consequences.
Campus tax compliance procedures must ensure (1) compliance with federal and state tax laws and regulations; (2) adherence to CSU policies; and (3) consistent application of laws, regulations and CSU policies to campus transactions.
Benjamin F. Quillian
Executive Vice-Chancellor/Chief Financial Officer
Approved: June 5, 2012
APPLICABILITY AND AREAS OF RESPONSIBILITY
RESOURCES AND REFERENCE MATERIALS
Although the CSU is a governmental entity, it is subject to the assessment of certain taxes, most notably unrelated business income tax (UBIT) and sales and use tax, to tax withholding obligations on payments made to its employees and vendors, including to non-resident aliens, and to tax-related reporting responsibilities, including the reporting of student scholarships.
The Chancellor’s Office is required to file on an annual basis the consolidated UBIT return and it will be signed by an appropriate official of that office. To fulfill this obligation, the Chancellor’s Office will request from and the campuses will provide all necessary data required to compute the CSU’s tax liability. Tax positions taken in connection with this filing will be solely determined by the Chancellor’s Office. The accuracy and completeness of the data used to prepare the return is the responsibility of campus officials. Campuses will disclose all matters impacting this filing.
For additional guidance on UBIT, please see UBIT Guidelines.
Sound Business Practices:
Laws, State Codes, Regulations and Mandates:
COGNIZANT OFFICE(S)CO Manager:
Mr. George Ashkar
Assistant Vice Chancellor, Financial Services
CSU Office of the Chancellor
Mr. Sedong John
Director, Systemwide Financial Standards & Reporting
CSU Office of the Chancellor
FOA (Financial Officers Association)