(a) The Franchise Tax Board may enter into a voluntary disclosure agreement with any qualified entity, qualified shareholder, qualified member, qualified beneficiary, or qualified partner, as defined in Section 19192, that is binding on both the Franchise Tax Board and the qualified entity, qualified shareholder, qualified member, qualified beneficiary, or qualified partner. (b) The Franchise Tax Board shall do all of the following: (1) Provide guidelines and establish procedures for qualified entities and their qualified shareholders, qualified members, qualified beneficiaries, or qualified partners to apply for voluntary disclosure agreements. (2) Accept applications on an anonymous basis from qualified entities and their qualified shareholders, qualified members, qualified beneficiaries, or qualified partners for voluntary disclosure agreements. (3) Implement procedures for accepting applications for voluntary disclosure agreements through the National Nexus Program administered by the Multistate Tax Commission. (4) For purposes of considering offers from qualified entities and their qualified shareholders, qualified members, qualified beneficiaries, or qualified partners to enter into voluntary disclosure agreements, take into account the following criteria: (A) The nature and magnitude of the qualified entityâs previous presence and activity in this state and the facts and circumstances by which the nexus of the qualified entity or qualified shareholder, qualified member, qualified beneficiary, or qualified partner was established. (B) The extent to which the weight of the factual circumstances demonstrates that a prudent business person exercising reasonable care would conclude that the previous activities and presence in this state were or were not immune from taxation by this state by reason of Public Law 86-272 or otherwise. (C) Reasonable reliance on the advice of a person in a fiduciary position or other competent advice that the qualified entity or qualified shareholder, qualified member, qualified beneficiary, or qualified partner activities were immune from taxation by this state. (D) Lack of evidence of willful disregard or neglect of the tax laws of this state on the part of the qualified entity, qualified shareholder, qualified member, qualified beneficiary, or qualified partner. (E) Demonstrations of good faith on the part of the qualified entity, qualified shareholder, qualified member, qualified beneficiary, or qualified partner. (F) Benefits that will accrue to the state by entering into a voluntary disclosure agreement. (5) Act on any application of a voluntary disclosure agreement within 120 days of receipt. (6) Enter into voluntary disclosure agreements with qualified entities, qualified shareholders, qualified members, qualified beneficiaries, or qualified partners, as authorized in subdivision (a) and based on the criteria set forth in paragraph (4). (c) Before any voluntary disclosure agreement becomes binding, the Franchise Tax Board, itself, shall approve the agreement in the following manner: (1) The Executive Officer and Chief Counsel of the Franchise Tax Board shall recommend and submit the voluntary disclosure agreement to the Franchise Tax Board for approval. (2) Each voluntary disclosure agreement recommendation shall be submitted in a manner as to maintain the anonymity of the taxpayer applying for the voluntary disclosure agreement. (3) A recommendation for approval of a voluntary disclosure agreement shall be approved or disapproved by the Franchise Tax Board, itself, within 45 days of the submission of that recommendation to the board. (4) A recommendation of a voluntary disclosure agreement that is not either approved or disapproved by the board within 45 days of the submission of that recommendation shall be deemed approved. (5) Disapproval of a recommendation of a voluntary disclosure agreement shall be made only by a majority vote of the Franchise Tax Board. (6) The members of the F
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