Bill Text: HI SB2779 | 2014 | Regular Session | Introduced
Bill Title: Auditor; Access to Tax Information
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2014-06-26 - Act 136, 6/24/2014 (Gov. Msg. No. 1239). [SB2779 Detail]
Download: Hawaii-2014-SB2779-Introduced.html
|
THE SENATE |
S.B. NO. |
2779 |
|
TWENTY-SEVENTH LEGISLATURE, 2014 |
|
|
|
STATE OF HAWAII |
|
|
|
|
|
|
|
|
||
|
|
||
A BILL FOR AN ACT
RELATING TO FINANCIAL AUDIT OF THE STATE OF HAWAII BY THE LEGISLATIVE AUDITOR.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The purpose of this bill is to specifically authorize the department of taxation to release certain otherwise confidential information to the legislative auditor or the legislative auditor's authorized agents, for the purpose of conducting the annual certified financial audit pursuant to section 23-5, Hawaii Revised Statutes, while also requiring the legislative auditor and its authorized agents to keep the information confidential.
SECTION 2. Section 23-5, Hawaii Revised Statutes, is amended by amending section (a) to read as follows:
"(a) The auditor may examine and inspect
all accounts, books, records, files, papers, and documents and all financial
affairs of every department, office, agency, and political subdivision[.],
including tax return information of the department of taxation, solely with
respect to the audit of the comprehensive annual financial report of the State
of Hawaii. Upon written request by the auditor, the department of taxation
shall provide to the auditor access to tax returns and the accounts, books,
records, files, papers, documents, and financial affairs of the department of
taxation but only to the extent necessary and relevant to the scope of annual
financial audit of the State. Return information provided to the auditor by
the department of taxation shall be considered working papers of the auditor
pursuant to section 23-9.5."
SECTION 3. Section 231-18, Hawaii Revised Statutes, is amended to read as follows:
"§231-18 [Federal or other tax
officials] Tax and other officials permitted to inspect returns;
reciprocal provisions. Notwithstanding the provisions of any law making it
unlawful for any person, officer, or employee of the State to make known
information imparted by any tax return or permit any tax return to be seen or
examined by any person, it shall be lawful to permit a duly accredited tax
official of the United States, any state or territory, any county of this
State, [or] the Multistate Tax Commission to inspect any tax return of
any taxpayer, or to furnish to an official, commission, or the authorized
representative thereof an abstract of the return or supply the official,
commission, or the authorized representative thereof with information
concerning any item contained in the return or disclosed by the report of any
investigation of the return or of the subject matter of the return for tax
purposes only[.], or, in the case of the legislative auditor, only in
connection with performing a financial audit of the State, but only to the
extent necessary and relevant to the scope of the financial audit. The
Multistate Tax Commission may make the information available to a duly
accredited tax official of the United States, any state or territory, or the
authorized representative thereof, for tax purposes only."
SECTION 4. Section 235-116, Hawaii Revised Statutes, is amended to read as follows:
"§235-116 Disclosure of returns
unlawful; penalty. All tax returns and return information required to be
filed under this chapter shall be confidential, including any copy of any
portion of a federal return [which] that may be attached to a
state tax return, or any information reflected in the copy of [such] the
federal return. It shall be unlawful for any person, or any officer or
employee of the State, including the legislative auditor or the legislative
auditor's agent in connection with a financial audit of the State pursuant to
section 23-5, to make known intentionally information imparted by any
income tax return or estimate made under sections 235-92, 235-94, 235-95, and
235-97 or willfully to permit any income tax return or estimate so made or copy
thereof to be seen or examined by any person other than the taxpayer or the
taxpayer's authorized agent, persons duly authorized by the State in connection
with their official duties, the Multistate Tax Commission or the authorized
representative thereof, except as provided by law, and any offense against the
foregoing provisions shall be punished by a fine not exceeding $500 or by
imprisonment not exceeding one year, or both."
SECTION 5. Section 237-34, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:
"(b) All tax returns and return
information required to be filed under this chapter, and the report of any
investigation of the return or of the subject matter of the return, shall be
confidential. It shall be unlawful for any person or any officer or employee
of the State, including the legislative auditor or the legislative auditor's
agent conducting a financial audit of the State pursuant to section 23-5,
to intentionally make known information imparted by any tax return or return
information filed pursuant to this chapter, or any report of any investigation
of the return or of the subject matter of the return, or to willfully permit any
[such] return, return information, or report so made, or any copy
thereof, to be seen or examined by any person; provided that for tax purposes
only, the taxpayer, the taxpayer's authorized agent, or persons with a material
interest in the return, return information, or report may examine them. Unless
otherwise provided by law, persons with a material interest in the return,
return information, or report shall include:
(1) Trustees;
(2) Partners;
(3) Persons named in a board resolution or a one per cent shareholder in the case of a corporate return;
(4) The person authorized to act for a corporation in dissolution;
(5) The shareholder of an S corporation;
(6) The personal representative, trustee, heir, or beneficiary of an estate or trust in the case of the estate's or decedent's return;
(7) The committee, trustee, or guardian of any person
in paragraphs (1) [to] through (6) who is incompetent;
(8) The trustee in bankruptcy or receiver, and the attorney-in-fact
of any person in paragraphs (1) [to] through (7);
(9) Persons duly authorized by the State in connection with their official duties;
(10) Any duly accredited tax official of the United States or of any state or territory;
(11) The Multistate Tax Commission or its authorized representative;
(12) Members of a limited liability company; and
(13) A person contractually obligated to pay the taxes assessed against another when the latter person is under audit by the department.
Any violation of this subsection shall be a misdemeanor."
SECTION 6. Section 237D-13, Hawaii Revised Statutes, is amended by amended subsection (a) to read as follows:
"(a) All tax returns and return information required to be filed under this chapter, and the report of any investigation of the return or of the subject matter of the return, shall be confidential. It shall be unlawful for any person or any officer or employee of the State, including the legislative auditor or the legislative auditor's agent conducting a financial audit of the State pursuant to section 23-5, to intentionally make known information imparted by any tax return or return information filed pursuant to this chapter, or any report of any investigation of the return or of the subject matter of the return, or to willfully permit any return, return information, or report so made, or any copy thereof, to be seen or examined by any person; provided that for tax purposes only the taxpayer, the taxpayer's authorized agent, or persons with a material interest in the return, return information, or report may examine them. Unless otherwise provided by law, persons with a material interest in the return, return information, or report shall include:
(1) Trustees;
(2) Partners;
(3) Persons named in a board resolution or a one per cent shareholder in the case of a corporate return;
(4) The person authorized to act for a corporation in dissolution;
(5) The shareholder of an S corporation;
(6) The personal representative, trustee, heir, or beneficiary or an estate or trust in the case of the estate's or decedent's return;
(7) The committee, trustee, or guardian of any person
in paragraphs (1)[to] through (6) who is incompetent;
(8) The trustee in bankruptcy or receiver, and the attorney-in-fact
of any person in paragraphs (1) [to] through (7);
(9) Persons duly authorized by the State in connection with their official duties;
(10) Any duly accredited tax official of the United States or of any state or territory, or of any county of this State;
(11) The Multistate Tax Commission or its authorized representative; and
(12) Members of a limited liability company.
Any violation of this subsection shall be a
misdemeanor. Nothing in this subsection shall prohibit the publication of
statistics [so] that are classified [as] to prevent the
identification of particular reports or returns and the items of the reports or
returns."
SECTION 7. Section 251-12, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) All tax returns and return
information required to be filed under this chapter, and the report of any
investigation of the return or of the subject matter of the return, shall be
confidential. It shall be unlawful for any person or any officer or employee
of the State, including the legislative auditor or the legislative auditor's
agent conducting a financial audit of the State pursuant to section 23-5,
to intentionally make known information imparted by any tax return or return
information filed pursuant to this chapter, or any report of any investigation
of the return or of the subject matter of the return, or to willfully permit
any [such] tax return, return information, or report so made, or any
copy thereof, to be seen or examined by any person; provided that for surcharge
tax purposes only the lessor or tour vehicle operator, the lessor's or tour
vehicle operator's authorized agent, or persons with a material interest in the
return, return information, or report may examine them. Unless otherwise
provided by law, persons with a material interest in the return, return
information, or report shall include:
(1) Trustees;
(2) Partners;
(3) Persons named in a board resolution or a one per cent shareholder in the case of a corporate return;
(4) The person authorized to act for a corporation in dissolution;
(5) The shareholder of an S corporation;
(6) The personal representative, trustee, heir, or beneficiary of an estate or trust in the case of the estate's or decedent's return;
(7) The committee, trustee, or guardian of any person
in paragraphs (1) [to] through (6) who is incompetent;
(8) The trustee in bankruptcy or receiver, and the attorney-in-fact
of any person in paragraphs (1) [to] through (7);
(9) Persons duly authorized by the State in connection with their official duties;
(10) Any duly accredited tax official of the United States or of any state or territory;
(11) The Multistate Tax Commission or its authorized representative; and
(12) Members of a limited liability company.
Any violation of this subsection shall be a
misdemeanor. Nothing in this subsection shall prohibit the publication of
statistics [so] that are classified so as to prevent the
identification of particular reports or returns and the items of the reports or
returns."
SECTION 8. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 9. This Act shall take effect upon its approval.
|
INTRODUCED BY: |
_____________________________ |
|
|
BY REQUEST |
Report Title:
Legislative Auditor; Access to Tax Information
Description:
Specifically authorizes the Legislative Auditor to access information in the possession of the Department of Taxation for purposes of conducting financial audits of the State of Hawaii, while also requiring the Legislative Auditor to keep the information confidential.
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
