§231-3  Department, general duties andpowers.  The department of taxation shall have the following duties andpowers, in addition to any others prescribed or granted by this chapter:

(1)  Assessment:  To make any assessment by lawrequired to be made by the department;

(2)  Collections:  To be responsible for thecollection of all taxes imposed under title 14, except those which by law areto be collected by county treasurers, and for such other duties as are providedby law;

(3)  Construction of revenue laws:  To construe thetax and revenue laws, the administration of which is within the scope of thedepartment's duties, whenever requested by any officer acting under those laws,or by an interested person;

(4)  Enforcement of penalties:  To see that penaltiesare enforced when prescribed by any tax or revenue law of the State (theadministration of which is within the scope of the department's duties) fordisobedience or evading of its provisions, and to see that complaint is madeagainst persons violating any such law; in the execution of these powers andduties the department may call upon the attorney general or any of the attorneygeneral's deputies, including the county attorneys or public prosecutors, whoseduties it shall be to assist in the institution and conduct of all proceedingsor prosecutions for penalties and forfeitures, liabilities, and punishments forviolation of the laws administered by the department;

(5)  Forms:  To prescribe forms to be used in or inconnection with any assessment, including forms to be used in the making ofreturns by taxpayers or in any other proceedings connected with the assessment,and to change the same from time to time as deemed necessary;

(6)  Inspection, examination of records:  To inspectand examine the records of all public officers without charge, and to examinethe books and papers of account of any person for the purpose of enabling thedepartment to obtain all information that could in any manner aid thedepartment in discharging its duties under any tax law;

(7)  Recommendations for legislation:  To recommend tothe governor any amendments, changes, or modifications of the laws as may seemproper or necessary to remedy injustice or irregularity in taxation or tofacilitate the assessment of taxes;

(8)  Report to governor:  To report to the governorannually, and at such other times and in such manner as the governor mayrequire, concerning the acts and doings and the administration of thedepartment, and any other matters of information concerning taxation as may bedeemed of general interest;

(9)  Rules:  To adopt such rules as the department maydeem proper effectually to carry out the purposes for which the department isconstituted and to regulate matters of procedure by or before the department;

(10)  Compromises:  With the approval of the governor,to compromise any claim where the tax exceeds $50,000 (exclusive of penaltiesand interest) arising under any tax law the administration of which is withinthe scope of the department's duties, and to compromise any tax claim where thetax is $50,000 or less (exclusive of penalties and interest) without seekingthe approval of the governor; provided that the director shall have thediscretion to seek the approval of the governor to compromise any tax claim wherethe director deems it appropriate; and in each case the department shall posteach proposed compromise, as set forth in subparagraphs (A) to (D), on thedepartment's internet website for five calendar days before the director signsthe compromise, and there shall be placed on file in the department's office astatement of:

(A)  The name of the taxpayer and the amountand type of tax assessed, or proposed to be assessed;

(B)  The amount of penalties and interestimposed or which could have been imposed by law with respect to the amount oftax assessed, as computed by the department;

(C)  The total amount of liability asdetermined by the terms of the compromise, and the actual payments made thereonwith the dates thereof; and

(D)  The reasons for the compromise.

Notwithstanding the provisions of any lawmaking unlawful the disclosure of tax returns or return information, statementson file and included in the department's internet website in respect ofcompromises shall be open to public inspection;

(11)  Retroactivity of rulings:  To prescribe theextent, if any, to which any ruling, rule, or construction of the tax laws, ofgeneral application, shall be applied without retroactive effect;

(12)  Remission of delinquency penalties and interest: Except in cases of fraud or wilful violation of the laws or wilful refusal tomake a return setting forth the information required by law (but inclusion in areturn of a claim of nonliability for the tax shall not be deemed a refusal tomake a return), the department may remit any amount of penalties or interestadded, under any law administered by the department, to any tax that isdelinquent, in a case of excusable failure to file a return or pay a tax withinthe time required by law, or in a case of uncollectibility of the whole amountdue; and in that case there shall be placed on file in the department's officea statement showing the name of the person receiving the remission, theprincipal amount of the tax, and the year or period involved;

(13)  Closing agreements:  To enter into an agreementin writing with any taxpayer or other person relating to the liability of thetaxpayer or other person, under any law the administration of which is withinthe scope of the department's duties, in respect of any taxable period, or inrespect of one or more separate items affecting the liability for any taxableperiod; the agreement, signed by or on behalf of the taxpayer or other personconcerned, and by or on behalf of the department, shall be final and conclusive,and except upon a showing of fraud or malfeasance, or misrepresentation of amaterial fact:

(A)  The matters agreed upon shall not bereopened, and the agreement shall not be modified, by any officer or employeeof the State; and

(B)  In any suit, action, or proceeding, theagreement, or any determination, assessment, collection, payment, refund, orcredit made in accordance therewith, shall not be annulled, modified, setaside, or disregarded;

(14)  Other powers and duties:  In addition to thepowers and duties contained in this chapter, the powers and duties contained inother chapters of the law under title 14 administered by the department forlevying, assessing, collecting, receiving, and enforcing payments of the taximposed thereunder, and otherwise relating thereto, shall be severally andrespectively conferred, granted, practiced, and exercised for levying,assessing, collecting, receiving, and enforcing payment of the taxes imposedunder the authority of those chapters as far as the provisions are consistentwith the express provisions of those chapters, as fully and effectually to allintents and purposes as if the same powers and authorities were repeated inthose chapters, with reference to those taxes, and all of the provisions shallbe applied, construed, deemed, and taken to refer to the taxes imposed underthe authority of those chapters, in like manner. [L 1932 2d, c 40, §§18, 20,57, 58; RL 1935, §1907; RL 1945, §5104; am L 1945, c 79, §2 and c 196, §1; am L1951, c 133, §1; am L 1953, c 125, §1 and c 223, §2; RL 1955, §115-4; am L Sp1959 2d, c 1, §16; HRS §231-3; am L 1983, c 217, §3; am L 1985, c 16, §2; gench 1985; am L 1986, c 340, §2; am L 1989, c 14, §4(2); am L 1990, c 320, §2; amL 1991, c 263, §3; am L 1995, c 66, §2; am L 2003, c 136, §3]

 

Cross References

 

  Generally, see §26-10.

  Annual reports, due dates, see §93-12.

 

Law Journals and Reviews

 

  Rule of Strict Construction in Tax Cases, a Question ofClassification or Exemption, Arthur B. Reinwald, 11 HBJ 98.

 

Case Notes

 

  Require information return.  33 H. 766.

  Commissioner may exercise the right to appeal given theassessor by §232-19.  44 H. 584, 358 P.2d 539.

  Economy in administration is a proper factor forconsideration in assessment of taxes.  56 H. 321, 536 P.2d 91.