REPORT TITLE: 
Tax penalties and interest


DESCRIPTION:
Amends sections 231-34, 231-35, and 231-36 to provide for
probation as a tax penalty.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        727
HOUSE OF REPRESENTATIVES                H.B. NO.           H.D. 1
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
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                     A BILL FOR AN ACT

RELATING TO TAX PENALTIES AND INTEREST.



BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 1      SECTION 1.  Section 231-34, Hawaii Revised Statutes, is
 
 2 amended to read:
 
 3      "§231-34  Attempt to evade or defeat tax.  Any person who
 
 4 wilfully attempts in any manner to evade or defeat any tax
 
 5 imposed under title 14, or the payment thereof, in addition to
 
 6 other penalties provided by law, shall be guilty of a class C
 
 7 felony and, upon conviction thereof, shall be fined not more than
 
 8 $100,000 [or], placed on probation, imprisoned not more than five
 
 9 years, [or both;] or any combination thereof; provided that a
 
10 corporation shall be fined not more than $500,000."
 
11      SECTION 2.  Section 231-35, Hawaii Revised Statutes, is
 
12 amended to read as follows:
 
13      "§231-35  Wilful failure to file return, supply information,
 
14 or secure a license.  Any person required to make a return, make
 
15 a report, keep any records, supply any information, or secure a
 
16 license required under title 14, who wilfully fails to make the
 
17 return, make the report, keep the records, supply the
 
18 information, or secure the license, at the time or times required
 
19 by law, [shall] in addition to other penalties provided by law, 
 

 
Page 2                                                     727
                                     H.B. NO.           H.D. 1
                                                        
                                                        

 
 1 shall be guilty of a misdemeanor and, upon conviction thereof,
 
 2 shall be fined not more than $25,000 [or], placed on probation,
 
 3 imprisoned not more than one year, [or both;] or any combination
 
 4 thereof; provided that a corporation shall be fined not more than
 
 5 $100,000." 
 
 6      SECTION 3.  Section 231-36, Hawaii Revised Statutes, is
 
 7 amended to read as follows:
 
 8      "§231-36  False and fraudulent statements; aiding and
 
 9 abetting.(a)  Any person who wilfully makes and subscribes any
 
10 return, statement, or other document required to be made under
 
11 title 14, except chapter 238, [which] that contains or is
 
12 verified by a written declaration that it is true and correct as
 
13 to every material matter[,] and [which] that the person does not
 
14 believe to be true and correct as to every material matter shall
 
15 be guilty of a class C felony and, upon conviction thereof, shall
 
16 be fined not more than $100,000 [or], placed on probation,
 
17 imprisoned not more than three years, [or both;] or any
 
18 combination thereof; provided that a corporation shall be fined
 
19 not more than $500,000; and provided further that, if the person
 
20 wilfully makes and subscribes any return, statement, or other
 
21 document, required to be made under chapter 238, [which] that
 

 
 
 
 
 
Page 3                                                     727
                                     H.B. NO.           H.D. 1
                                                        
                                                        

 
 1 contains or is verified by a written declaration that it is true
 
 2 and correct as to every material matter and [which] that the
 
 3 person does not believe to be true and correct, then the person
 
 4 shall be guilty of a misdemeanor and, upon conviction thereof,
 
 5 shall be fined not more than $2,000, [or] placed on probation,
 
 6 imprisoned not more than one year, [or both.] or any combination
 
 7 thereof.
 
 8      (b)  Any person who wilfully aids or assists in, or
 
 9 procures, counsels, or advises the preparation or presentation of
 
10 any tax return, affidavit, claim, or other document required to
 
11 be made under title 14, [which] that is fraudulent or is false as
 
12 to any material matter, regardless of whether the falsity or
 
13 fraud is with the knowledge or consent of the person authorized
 
14 or required to present the return, affidavit, claim, or document
 
15 shall be guilty of a class C felony and, upon conviction thereof,
 
16 shall be fined not more than $100,000 [or], placed on probation,
 
17 imprisoned not more than three years, [or both;] or any
 
18 combination thereof; provided that a corporation shall be fined
 
19 not more than $500,000." 
 
20      SECTION 4.  Statutory material to be repealed is bracketed.
 
21 New statutory material is underscored.
 
22      SECTION 5.  This Act shall take effect upon its approval.