Remitters - Fiduciary duty - Penalties

Official textoscn.netlast amended Jul 01, 2012

# A.

Any amounts withheld in accordance with the provisions of
Section 2385.26 of this title shall be deemed to be held in trust for the State of Oklahoma, and, as trustee, the remitter shall have a fiduciary duty to the State of Oklahoma in regard to such amounts and shall be subject to the trust laws of this state. Any remitter who fails to pay to the Tax Commission any amounts required to be withheld by such remitter, after such amounts have been withheld from oil or gas royalty payments, and appropriates the amount held in trust to the remitter's own use, or to the use of any person not entitled thereto, without authority of law, shall be guilty of embezzlement.

# B.

If any remitter fails to withhold the amounts required to be withheld by Section 2385.26 of this title and thereafter income tax is paid by the recipient of the oil or gas production payment with respect to such payment, the amount so required to be withheld shall not be collected from the remitter but such remitter shall not be relieved from the liability for penalties or interest otherwise applicable because of such failure to withhold such amount.

# C.

If a remitter fails to file a return or to pay to the Tax
Commission the amounts withheld within the time prescribed by
Sections 2385.25 through 2385.28 of this title, there shall be imposed on the remitter a penalty equal to ten percent (10%) of the amount required to be withheld, or ten percent (10%) of the amount of the underpayment of the amount required to be withheld, if such failure is not corrected within fifteen (15) days after the tax becomes delinquent. There shall also be imposed on such remitter interest at the rate of one and one-quarter percent (1 1/4%) per month during the period such underpayment exists. For the purposes of this subsection, "underpayment" shall mean the excess of the amount required to be paid over the amount thereof actually paid on or before the date prescribed therefor. Such penalty and interest shall be added to and become a part of the amount assessed.
However, the Tax Commission shall not collect the penalty assessed if the remitter remits the amount required to be withheld within thirty (30) days of the mailing of a proposed assessment or voluntarily pays such amount upon the filing of an amended return.

# D.

Any remitter who is required under the provisions of subsection C of Section 2385.27 of this title to furnish a statement to a recipient of oil or gas royalty payment, but who willfully fails to furnish such recipient the statement, shall be punished by an administrative fine not exceeding One Thousand Dollars ($1,000.00).

Amendment history

Added by Laws 2000, c. 315, § 9, eff. Oct. 1, 2000. Amended by Laws 2012, c. 357, § 10, eff. July 1, 2012.

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