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

 
HB HMIA 99-230
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                            727         
HOUSE OF REPRESENTATIVES                H.B. NO.           
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
________________________________________________________________
________________________________________________________________


                     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, 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
 

 
HB HMIA 99-230
Page 2                                         727         
                                     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 to read as follows:
 
 7      "231-36  False and fraudulent statements; aiding and
 
 8 abetting.(a)  Any person who wilfully makes and subscribes any
 
 9 return, statement, or other document required to be made under
 
10 title 14, except chapter 238, which contains or is verified by a
 
11 written declaration that it is true and correct as to every 
 
12 material matter, and which the person does not believe to be true
 
13 and correct as to every material matter shall be guilty of a
 
14 class C felony and, upon conviction thereof, shall be fined not
 
15 more than $100,000 or imprisoned not more than three years, or
 
16 both; provided that a corporation shall be fined not more than
 
17 $500,000; and provided further that, if the person wilfully makes
 
18 and subscribes any return, statement, or other document required
 
19 to be made under chapter 238, which contains or is verified by a
 
20 written declaration that it is true and correct as to every
 
21 material matter and which the person does not believe to be true
 
22 and correct, then the person shall be guilty of a misdemeanor
 
23 and, upon conviction thereof, shall be fined not more than
 

 
HB HMIA 99-230
Page 3                                         727         
                                     H.B. NO.           
                                                        
                                                        

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

 
HB HMIA 99-230