Legal Question in Administrative Law in California

If I receive a car as a gift and thus not pay sales tax,

What are the chances that the state will inquire or investigate

the fact that it may not have been a gift but a purchase

and wants to charge sales tax? I.e., I am actually purchasing the car.

In this economy, every penny counts. So I'm trying to avoid

sales tax if I can. Am I taking a chance on serious repercussions?

Can the state go after me for fraud? Tax evasion?

Are there penalties and interest? Or would you recommend simply

Listing the purchase price very low to keep my taxes low?

I also may be listing a lienholder on the title, so I would

Need to show an actual purchas price on that case.

Thanks.

1 Answer from Attorneys

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