HRS § 237-36 — Erroneous returns, disallowance of exemption, payment


ASSESSMENTS, REFUNDS, AND RECORDS
ASSESSMENTS,
REFUNDS, AND RECORDS
§237-36 Erroneous returns, disallowance of
exemption, payment. If any return made is erroneous, or is so deficient as
not to disclose the full tax liability, or if the taxpayer, in the taxpayer's
return, shall disclaim liability for the tax on any gross income or gross
proceeds of sales liable to the tax, or if the taxpayer shall make application
under section 237-23 for an exemption to which the taxpayer is not entitled,
the department of taxation shall correct the error or assess the proper amount
of taxes. If such recomputation results in an additional tax liability, or if
the department proposes to assess any gross income or gross proceeds of sales
by reason of the disallowance of an exemption claimed in the return or for
which application has been filed, the department shall first give notice to the
taxpayer of the proposed assessment, and the taxpayer shall thereupon have an
opportunity within thirty days to confer with the department. After the
expiration of thirty days from the notification the department shall assess the
gross income or gross proceeds of sales of the taxpayer or any portion thereof
which the department believes has not theretofore been assessed, and shall give
notice to the taxpayer of the amount of the tax, and the amount thereof shall
be paid within twenty days after the date the notice was mailed, properly
addressed to the taxpayer at the taxpayer's last known address or place of
business.
No preliminary notice shall be necessary where
the amount of the tax is calculated by the department from gross income
returned by the taxpayer as subject to the tax (unless the taxpayer shall have
claimed that the applicable rate of tax is lower than the rate of tax applied
by the department); in such case the tax shall be due and payable on the tenth
day after the date the statement was mailed. In a case of disallowance of an
exemption for which application was made under section 237-23 the department, before
making an assessment, may require the applicant, by demand made upon the
applicant by mail or delivery thereof to the address shown in the application,
to file information returns as to the applicant's gross income or gross
proceeds of sales within such reasonable time as the department may allow, and
in the event of failure, neglect, or refusal to comply with the demand, the
department shall make an assessment under section 237-38, in lieu of this section.