§231-36  False and fraudulent statements;aiding and abetting.  (a)  Any person who wilfully makes and subscribes anyreturn, statement, or other document required to be made under title 14, exceptchapter 238, which contains or is verified by a written declaration that it istrue and correct as to every material matter, and which the person does notbelieve to be true and correct as to every material matter shall be guilty of aclass C felony and, upon conviction, shall be subject to one or any combinationof the following:

(1)  A fine of not more than $100,000;

(2)  Imprisonment of not more than three years; or

(3)  Probation;

provided that a corporation shall be fined not morethan $500,000; and provided further that, if the person wilfully makes and subscribesany return, statement, or other document required to be made under chapter 238,which contains or is verified by a written declaration that it is true andcorrect as to every material matter and which the person does not believe to betrue and correct, then the person shall be guilty of a misdemeanor and, uponconviction, shall be subject to one or any combination of the following:

(1)  A fine of not more than $2,000;

(2)  Imprisonment of not more than one year; or

(3)  Probation.

(b)  Any person who wilfully aids or assistsin, or procures, counsels, or advises the preparation or presentation of anytax return, affidavit, claim, or other document required to be made under title14, which is fraudulent or is false as to any material matter, regardless ofwhether the falsity or fraud is with the knowledge or consent of the personauthorized or required to present the return, affidavit, claim, or documentshall be guilty of a class C felony and, upon conviction, shall be subject toone or any combination of the following:

(1)  A fine of not more than $100,000;

(2)  Imprisonment of not more than three years; or

(3)  Probation;

provided that a corporation shall be fined not morethan $500,000. [L 1932 2d, c 40, §14; RL 1935, §1902; RL 1945, §5136; RL 1955,§115-40; HRS §231-36; am L 1995, c 92, §6; am L 1998, c 103, §1; am L 1999, c303, §3]

 

Case Notes

 

  Where, pursuant to §231-40, the Cheek interpretation of thewilfulness requirement--that a jury must be permitted to consider evidence of adefendant's good faith belief that defendant's conduct did not violate the taxlaws, even if that belief was not objectively reasonable, in determiningwhether defendant acted wilfully--was adopted and applied in construingsubsection (a), the trial court erred in excluding defendant's exhibit pursuantto HRE rules 401 and 403 on the grounds that defendant's analysis of the taxlaws was irrelevant and that evidence of defendant's legal theories wouldconfuse the jury.  119 H. 60 (App.), 193 P.3d 1260.