A. Conclusiveness of Statements. No statement required by the provisions of this chapter shall be conclusive as to the matters set forth therein, nor shall the filing of such statements preclude the city from collecting by appropriate action such sums as are actually due and payable pursuant to the provisions of this chapter. Such statements and each of the several items therein contained shall be subject to certification by the finance director, the deputies of the finance director, or authorized employees or representatives of the city, who are hereby authorized to examine such books and records of any certificate holder or applicant for a business tax certificate as may be necessary in their judgment to verify or ascertain the amount of the business tax due.

B. Record Retention. All persons subject to the provisions of this chapter shall keep complete records of all business transactions and shall retain such records for examination by the finance director, the deputies of the finance director, or authorized employees or representatives of the city, and maintain them for a period of at least three years from the annual due date of the federal tax return or the city business tax return, whichever time period is greater. Records which shall be maintained for audit purposes shall include state and federal income tax returns, schedules and records included in such returns, and any and all work papers used to prepare such returns.

C. Examination of Records. All business tax certificate holders, applicants for business tax certificates, and persons engaged in business in the city are hereby required to permit an examination of such books and records for the purposes set forth in this section during regular business hours and at reasonable times.

D. Interest and Penalties. If, subsequent to the examination, it is determined that the business has been delinquent or has nonreported or under-reported gross receipts, thereby underpaying business taxes, the certificate holder shall pay to the city within ten days of notification of the determination of the amount of tax due, interest in the amount of eight percent from the date the tax was due, and a penalty in the amount of the business tax due. Interest shall continue to accrue on the additional tax amount until such amount is paid in full.

A mistake made in stating the amount of the business tax shall not, in any case, prevent or prejudice the finance director from collecting what is actually due from any person or entity carrying on a trade, calling, profession, or occupation subject to a business tax under this chapter.

E. Determination of Tax Amounts Due. If any person subject to the tax imposed by this chapter fails to submit information required, or if the finance director is not satisfied with records and statements filed, the finance director shall determine the amount of the business tax due from such person by means of such information as may be obtainable and shall mail a notice of the amount so assessed by serving it personally or by depositing it in the United States Post Office at San Luis Obispo, California, postage prepaid, addressed to the person at their last-known address. (Ord. 1202 § 2, 1991)