STAND. COM. REP. NO.972

Honolulu, Hawaii

, 2001

RE: S.B. No. 1195

S.D. 1

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Judiciary and Hawaiian Affairs, to which was referred S.B. No. 1195, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO TAXPAYER COMMUNICATION CONFIDENTIALITY PRIVILEGES,"

begs leave to report as follows:

The purpose of this bill is to expand Hawaii's taxpayer confidentiality privilege to conform with Section 7525 of the Internal Revenue Code (IRC).

The scope of the attorney-client privilege under Section 7525 of the IRC includes all "tax advice." Pursuant to Act 174, Session Laws Hawaii 2000, Hawaii adopted Section 7525, but only as it applies to communications relating to the state income tax. Your Committee believes that this bill is necessary to apply the principles of Section 7525 to all taxes administered by the State.

As affirmed by the record of votes of the members of your Committee on Judiciary and Hawaiian Affairs that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1195, S.D. 1, and recommends that it pass Second Reading and be referred to the Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Judiciary and Hawaiian Affairs,

____________________________

ERIC G. HAMAKAWA, Chair