In Re State Sales Tax Liability of Simpson

SABERS, Justice.

Department of Revenue assessed taxpayer for delinquent sales taxes, penalty, and interest based upon the retroactive application of a statute of limitations or, alternatively, a finding of fraud. Taxpayer appeals. We affirm on fraud.

FACTS

As a result of a routine canvass of Winner, South Dakota, by the Department of Revenue (Department) on December 28th and 29th, 1988, the Department determined that John J. Simpson (Simpson) failed to obtain a sales tax license in 1965 when *625attorney’s fees became subject to sales tax. After an audit of Simpson’s books and records for the years…