Clothing Business CEO on Hook for Unpaid California Sales Tax

The CEO of a now-defunct men’s clothing business is personally liable for its unpaid sales tax because she was the sole corporate officer, a California tax tribunal ruled in an opinion released Monday.

Ark, which had two storefronts in San Jose, listed Zehra Sultana as its CEO, secretary, CFO, and director. Sultana failed to convince the California Office of Tax Appeals that she was actually a silent partner in the business who only signed documents when no one else was available.

Sultana claims that “a manager and the bookkeeper oversaw sales and use tax matters but provides no evidence in ...