REPORT TITLE:
Income Tax Penalties


DESCRIPTION:
Allows probation as an option for sentencing for income tax
offenses.  (SB1421 HD2)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        1421
THE SENATE                              S.B. NO.           S.D. 1
TWENTIETH LEGISLATURE, 1999                                H.D. 2
STATE OF HAWAII                                            
                                                             
________________________________________________________________
________________________________________________________________


                   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]
 
 8 subject to one or any combination of the following:
 
 9      (1)  A fine of not more than $100,000 [or imprisoned];
 
10      (2)  Imprisonment of not more than five years[, or both]; or
 
11      (3)  Probation;
 
12 provided that a corporation shall be fined not more than
 
13 $500,000."
 
14      SECTION 2.  Section 231-35, Hawaii Revised Statutes, is
 
15 amended to read as follows:
 
16      "�231-35  Wilful failure to file return, supply information,
 
17 or secure a license.  Any person required to make a return, make
 
18 a report, keep any records, supply any information, or secure [a]
 
19 any license required under title 14, who wilfully fails to make
 
20 the return, make the report, keep the records, supply the
 

 
Page 2                                                     1421
                                     S.B. NO.           S.D. 1
                                                        H.D. 2
                                                        

 
 1 information, or secure the license, at the time or times required
 
 2 by law, shall in addition to other penalties provided by law, be
 
 3 guilty of a misdemeanor and upon conviction [thereof], shall be
 
 4 [fined] subject to one or any combination of the following:
 
 5      (1)  A fine of not more than $25,000 [or imprisoned];
 
 6      (2)  Imprisonment of not more than one year[, or both]; or
 
 7      (3)  Probation;
 
 8 provided that a corporation shall be fined not more than
 
 9 $100,000."
 
10      SECTION 3.  Section 231-36, Hawaii Revised Statutes, is
 
11 amended to read as follows:
 
12      "�231-36  False and fraudulent statements; aiding and
 
13 abetting.(a)  Any person who wilfully makes and subscribes any
 
14 return, statement, or other document required to be made under
 
15 title 14, except chapter 238, which contains or is verified by a
 
16 written declaration that it is true and correct as to every
 
17 material matter, and which the person does not believe to be true
 
18 and correct as to every material matter shall be guilty of a
 
19 class C felony and, upon conviction [thereof], shall be [fined]
 
20 subject to one or any combination of the following:
 
21      (1)  A fine of not more than $100,000 [or imprisoned];
 
22      (2)  Imprisonment of not more than three years[, or both];
 
23           or
 

 
Page 3                                                     1421
                                     S.B. NO.           S.D. 1
                                                        H.D. 2
                                                        

 
 1      (3)  Probation;
 
 2 provided that a corporation shall be fined not more than
 
 3 $500,000; and provided further that, if the person wilfully makes
 
 4 and subscribes any return, statement, or other document required
 
 5 to be made under chapter 238, which contains or is verified by a
 
 6 written declaration that it is true and correct as to every
 
 7 material matter and which the person does not believe to be true
 
 8 and correct, then the person shall be guilty of a misdemeanor
 
 9 and, upon conviction [thereof], shall be [fined] subject to one
 
10 or any combination of the following:
 
11      (1)  A fine of not more than $2,000[, or imprisoned];
 
12      (2)  Imprisonment of not more than one year[, or both.]; or
 
13      (3)  Probation.
 
14      (b)  Any person who wilfully aids or assists in, or
 
15 procures, counsels, or advises the preparation or presentation of
 
16 any tax return, affidavit, claim, or other document required to
 
17 be made under title 14, which is fraudulent or is false as to any
 
18 material matter, regardless of whether the falsity or fraud is
 
19 with the knowledge or consent of the person authorized or
 
20 required to present the return, affidavit, claim, or document
 
21 shall be guilty of a class C felony and, upon conviction
 
22 [thereof], shall be [fined] subject to one or any combination of
 
23 the following:
 

 
Page 4                                                     1421
                                     S.B. NO.           S.D. 1
                                                        H.D. 2
                                                        

 
 1      (1)  A fine of not more than $100,000 [or imprisoned];
 
 2      (2)  Imprisonment of not more than three years[, or both];
 
 3           or
 
 4      (3)  Probation;
 
 5 provided that a corporation shall be fined not more than
 
 6 $500,000."
 
 7      SECTION 4.  Statutory material to be repealed is bracketed.
 
 8 New statutory material is underscored.
 
 9      SECTION 5.  This Act shall take effect upon its approval.