Sales and use taxes: worthless accounts.

(1) The Sales and Use Tax Law provides that a retailer is relieved from liability for sales or use tax where the measure of the tax is represented by accounts that have been found to be worthless and charged off, as specified. Existing law provides that a retailer may take as a deduction against that tax liability, the amount found to be worthless and charged off, if the retailer has previously paid the tax as provided. Existing law includes as a retailer certain affiliated entities.