CA, Inc.'s Answer and Counterclaim - Reed Smith

From the state tax library of Reed Smith LLPwww.reedsmith.com/DEtaxfor other related documents, please email ksollie@reedsmith.com205. An actual controversy exists as to whether the State can assert rights in propertythat are greater than the rights of the purported Owner to that property.206. An actual controversy exists as to whether the State can retroactively apply itscurrent compliance posture to any period prior to a public adoption of said compliance goals.207. An actual controversy exists as to the amount that CA owes the State inconnection with the VDA.208. These actual controversies present a need for a declaration by the Court relative tothe rights of CA and the State with respect to the Statute, the State’s implementation of theStatute, the VDA, the State’s implementation of the VDA, and the State’s audit policies and theNotice of Audit.209. The resolution of these disputes by the entry of judgment declaring the rights ofthe parties is necessary and appropriate under the existing facts and circumstances.210. The judgment sought will serve a useful purpose in clarifying and settling thelegal rights and obligations owed by the parties with respect to the VDA and the Notice of Audit.211. The judgment sought does not involve an advisory opinion as to a legal injurybased on hypothetical facts.212. The judgment will afford CA relief from the uncertainty, insecurity andcontroversy giving rise to this controversy.213. The actions by the State regarding the issues described above were arbitrary andcapricious and not properly grounded in either fact or law.214. CA requests that the Court declare the amount owed to the State pursuant to theVDA.- 72 –