§231-7  Hearings and subpoenas.  (a) The director of taxation, and any representative of the director dulyauthorized by the director, may conduct any inquiry, investigation, or hearing,relating to any assessment, or the amount of any tax, or the collection of anydelinquent tax, including any inquiry or investigation into the financialresources of any delinquent taxpayer or the collectability of any delinquenttax.

(b)  The director or other person conductinghearings may administer oaths and take testimony under oath relating to thematter of inquiry or investigation, and subpoena witnesses and require theproduction of books, papers, documents, and records pertinent to such inquiry.

(c)  If any person disobeys any process or,having appeared in obedience thereto, refuses to answer pertinent questions putto the person by the director or other person conducting the hearing, or toproduce any books, papers, documents, or records pursuant thereto, the directoror other person conducting the hearing may apply to the circuit court of thecircuit wherein the inquiry or investigation is being conducted, or to anyjudge of the court, setting forth the disobedience to process or refusal toanswer, and the court or judge shall cite the person to appear before the courtor judge to answer the questions or to produce the books, papers, documents, orrecords, and upon the person's refusal so to do commit the person to jail untilthe person testifies but not for a longer period than sixty days. Notwithstanding the serving of the term of commitment by any person, thedirector may proceed in all respects as if the witness had not previously beencalled upon to testify.  Witnesses (other than the taxpayer or the taxpayer'sor its officers, directors, agents, and employees) shall be allowed their feesand mileage as in cases in the circuit courts, to be paid on vouchers of thedepartment of taxation, from any moneys available for expenses of thedepartment.

(d)  Any subpoena issued under this sectionthat does not identify the person with respect to whose liability orinvestigation the subpoena is issued may be served on any person only after acourt proceeding in which the director or another person establishes that:

(1)  The subpoena relates to the investigation of a particularperson or ascertainable group or class of persons;

(2)  There is a reasonable basis for believing thatthe person or group or class of persons may fail or may have failed to complywith any provision of title 14; and

(3)  The information sought to be obtained from theexamination of records or testimony and the identity of the person or personswith respect to whose liability the subpoena is issued is not readily availablefrom other sources.

(e)  The provisions of this section are inaddition to all other provisions of law, and apply to any tax within thejurisdiction of the department. [L 1945, c 196, §1; RL 1955, §115-11; am L Sp1959 2d, c 1, §16; HRS §231-7; gen ch 1985; am L 2009, c 166, §17]

 

Note

 

  Applicability of 2009 amendment.  L 2009, c 166, §27.