HRS § 237-39 — Audits; procedure, penalties


§237-39 Audits; procedure, penalties.
(a) For the purpose of verification or audit of a return made by the taxpayer,
or where there is reasonable ground to believe that any return made is so
deficient as not to form the basis of a satisfactory assessment of the tax, or
for the purpose of making an assessment where no return has been made, the
department of taxation or the Multistate Tax Commission pursuant to chapter
255, or the authorized representative thereof, may examine all account books,
bank books, bank statements, records, vouchers, taxpayer's copies of federal
tax returns, and any and all other documents and evidence having any relevancy
to the determination of the gross income or gross proceeds of sales of any
taxpayer as required to be returned under this chapter and may summon or
require the attendance of the person by or for whom the return, if any, has
been made or whose tax is being assessed, and any employee of the person, and
may summon or require the attendance of any person having knowledge in the
premises, naming the time and place in the summons, and may require the
production of any books, statements, or other evidence open to examination, and
may take testimony in reference to any matter relevant to the gross income or
gross proceeds of sales of the taxpayer for the period under consideration,
with power to require that the person so called and appearing shall be
interrogated under oath and to administer the oath.
(b) If the department determines that any
gross income or gross proceeds of sales liable to the tax have not been
assessed, the department may assess the same as provided in sections 237-36 and
237-38.
(c) Any individual knowingly giving false
testimony under oath at any hearing before the department shall be guilty of
perjury and shall be punished as provided by law.
(d) Any person refusing or neglecting to obey
any summons issued by the department, and any individual appearing and refusing
to testify under oath, shall be fined $50 for the first offense and $100 for
each succeeding offense.