Whitby v. Director of Revenue

COVINGTON, Chief Justice.

The Director of Revenue assessed Gary S. Whitby for unpaid sales tax of Level Eight, Inc. The Administrative Hearing Commission held that Whitby was not liable for the assessment because he did not have direct control, supervision, or responsibility for filing returns or paying the tax. Reversed and remanded.

The facts are not in dispute. In 1989, Whitby and Garland Middendorf formed Level Eight, Inc., a subchapter S corporation, for the purpose of operating a restaurant in Columbia, Missouri. Middendorf was to supply the necessary capital and tend to the financial…