HOUSE OF REPRESENTATIVES	H.B. NO.	1492
THIRTY-FIRST LEGISLATURE, 2022
STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO TAXATION.

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

SECTION 1. Chapter 231, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§231- Failure to respond; inspection or examination of records. (a) No person shall fail to timely:

(1) Reply to the department; or

(2) Acknowledge correspondence or an inquiry from the department,

with respect to the department's actual or attempted inspection or examination of records under paragraph (6) of section 231-3.

(b) Except as provided in subsection (c), a person that violates this section shall be subject to a civil penalty equal to twenty-five per cent of the any state taxes owed, as based on the records; provided that the penalty shall not exceed $10,000.

(c) The director may waive the penalty imposed in subsection (b) for reasonable cause."

SECTION 2. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

SECTION 3. New statutory material is underscored.

SECTION 4. This Act shall take effect on July 1, 2022.

INTRODUCED BY:

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Report Title:

DOTAX; Inspection; Examination; Records; Correspondence; Penalties

Description:

Establishes a civil penalty for failure to respond to the Department of Taxation in relation to an inspection or examination of records.

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