REPORT TITLE:
Income Tax Penalties


DESCRIPTION:
Allows probation as an option for sentencing for income tax
offenses.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        
THE SENATE                              S.B. NO.           1421
TWENTIETH LEGISLATURE, 1999                                
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]; provided that a corporation shall be
 
10 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 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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                                     S.B. NO.           1421
                                                        
                                                        

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

 
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                                     S.B. NO.           1421
                                                        
                                                        

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