REPORT TITLE:
Income Tax Penalties


DESCRIPTION:
Allows probation as an option for sentencing for income tax
offenses.  (SB1421 HD1)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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THE SENATE                              S.B. NO.           S.D. 1
TWENTIETH LEGISLATURE, 1999                                H.D. 1
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO TAXATION. 


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] its payment [thereof], in
 
 6 addition to other penalties provided by law, shall be guilty of a
 
 7 class C felony and, upon conviction [thereof], shall be fined not
 
 8 more than $100,000, placed on probation, or imprisoned not more
 
 9 than five years, [or both;], or any combination thereof; provided
 
10 that a 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 any license required under title 14, who wilfully fails to make
 
17 the 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
 

 
Page 2                                                     1421
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 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;], or any combination thereof;
 
 4 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 contains or is verified by a
 
12 written declaration that it is true and correct as to every
 
13 material matter, and which the person does not believe to be true
 
14 and correct as to every material matter shall be guilty of a
 
15 class C felony and, upon conviction [thereof], shall be fined not
 
16 more than $100,000, placed on probation, or imprisoned not more
 
17 than three years[, or both;], or any combination thereof;
 
18 provided that a corporation shall be fined not more than
 
19 $500,000; and provided further that, if the person wilfully makes
 
20 and subscribes any return, statement, or other document required
 
21 to be made under chapter 238, which contains or is verified by a
 
22 written declaration that it is true and correct as to every
 
23 material matter and which the person does not believe to be true
 

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