§235-108  Audit of return; procedure;
additional taxes.  (a)  Audit.  The director of taxation or a responsible
person designated by the director to act in the premises for the purpose of
verification or audit of a return made by the taxpayer or employer, or for the
purpose of making a return where none has been made, is authorized and
empowered to examine all account books, bank books, bank statements, records,
vouchers, copies of federal tax returns, and any and all other documents and
evidences having any relevancy to the determination of the income or wages as
required to be returned under this chapter, and the director may employ the
director's powers under section 231-7 for such purposes.



(b)  Additional taxes.  If the department of
taxation discovers from the examination of the return or otherwise that income,
or the liability of an employer in respect of wages, or any portion thereof,
has not been assessed, it may assess the same and give notice to the taxpayer
or employer of the assessment, and the taxpayer or employer shall thereupon
have an opportunity within thirty days to confer with the department as to the
proposed assessment.  After the expiration of thirty days from such
notification the department shall assess the income of the taxpayer, or the
liability of the employer in respect of wages, or any portion thereof which it
believes has not heretofore been assessed, and shall give notice to the
taxpayer or employer of the amount of the tax and interest and penalties if
any, and the amount thereof shall be paid within twenty days after the date the
notice was mailed, properly addressed to the taxpayer or employer at the
taxpayer's or employer's last known address or place of business. [L Sp 1957, c
1, pt of §2; am L Sp 1959 2d, c 1, §16; Supp, §121-42; HRS §235-108; gen ch
1985]



 



Case Notes



 



  Assessor not bound to take return as true.  16 H. 796.



  Method of computing depreciation not reflective of income. 
18 H. 530.



  Reassessment proper when income in previous year unreported. 
28 H. 261.