Hawaii Administrative Rules Title 18 — Department of Taxation

HAR § 18-231-95-01

Fine for failure to keep adequate books and records

# (a)

A person required to keep adequate books and records but who fails to produce such books and records upon demand by the special enforcement section shall be fined as follows:

# (1)

For the first offense, a fine of $500;

# (2)

For second and subsequent offenses, a fine of $1,000; provided that if the person is a cash- based business, the fine shall be $2,000.

# (b)

A person shall not be required to keep books and records in any particular format, provided that the books and records fairly reflect the financial matters of the business, including (but not limited to) the revenue and expenses of the business.

# (c)

The special enforcement section shall demand the production of books and records in writing that shall state: (1) That if the person was unable to produce the books and records while the special enforcement section officer was present, the person must make an appointment with the special enforcement section officer to deliver the books and records to that officer or another officer of the special enforcement section at a state tax office within fourteen days; and (2) What period of books and records the person must produce.

# (d)

Where a person’s business records are not in his or her possession due to transient business location, the special enforcement section will allow the person to produce the books and records at a state tax office. A person may agree to produce books and records outside a state tax office, or agree to produce books and records in a period of time shorter than fourteen days, at his or her discretion and upon agreement with a special enforcement section officer.

# (e)

Only one citation may be issued to the person in any thirty day period for any demand of any period of books and records. Following the expiration of the thirty day period, a citation may be issued for failure to produce the same books and records demanded in connection with any previous citation, or for failure to produce books and records for a different period. Every citation issued under this section shall be considered as a separate violation.

Last amended: [Eff 11/30/14] (Auth: HRS §231-3(9)) (Imp: HRS §231-95) HRS §231-96

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