REPORT TITLE: 
Tax penalties


DESCRIPTION:
Provides for probation for attempted tax evasion, willful
failure to file a tax return, and aiding and abetting
preparation of a false tax return.


 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                            676         
HOUSE OF REPRESENTATIVES                H.B. NO.           
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 as follows:
 
 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, placed on probation, or imprisoned not more than five
 
 9 years[, or both]; provided that a corporation shall be fined not
 
10 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, be
 

 
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                                     H.B. NO.           
                                                        
                                                        

 
 1 guilty of a misdemeanor and upon conviction thereof, shall be
 
 2 fined not more than $25,000, placed on probation, or imprisoned
 
 3 not more than one year[, or both]; provided that a corporation
 
 4 shall be fined not more than $100,000."
 
 5      SECTION 3.  Section 231-36, Hawaii Revised Statutes, is
 
 6 amended by amending subsection (b) to read as follows:
 
 7      "(b)  Any person who wilfully aids or assists in, or
 
 8 procures, counsels, or advises the preparation or presentation of
 
 9 any tax return, affidavit, claim, or other document required to
 
10 be made under title 14, which is fraudulent or is false as to any
 
11 material matter, regardless of whether the falsity or fraud is
 
12 with the knowledge or consent of the person authorized or
 
13 required to present the return, affidavit, claim, or document
 
14 shall be guilty of a class C felony and, upon conviction thereof,
 
15 shall be fined not more than $100,000, placed on probation, or
 
16 imprisoned not more than three years, or both; provided that a
 
17 corporation shall be fined not more than $500,000."
 
18      SECTION 4.  Statutory material to be repealed is bracketed.
 
19 New statutory material is underscored.
 
20      SECTION 5.  This Act shall take effect upon its approval.
 
21 
22                         INTRODUCED BY:___________________________