§235-112  Time for assessment of deficiencyattributable to gain upon conversion.  (a)  If a taxpayer has made theelection provided in section 1033(a)(2)(A) of the Internal Revenue Code, therules stated in this section apply.

(b)  The statutory period for the assessment ofany deficiency, for any taxable year in which is realized any part of the gainon the conversion which is the subject of the election referred to insubsection (a) of this section, attributable to such gain, shall not expireprior to the expiration of three years from the date the department of taxationis notified by the taxpayer (in such manner as the department has prescribed ormay prescribe) of the replacement of the converted property or of an intentionnot to replace, and such deficiency may be assessed at any time before theexpiration of this three-year period notwithstanding any other provision whichwould otherwise prevent such assessment.

(c)  If the property or stock purchased as areplacement for converted property was purchased before the beginning of thelast taxable year in which any part of the gain upon such conversion isrealized, any deficiency, to the extent resulting from the election referred toin subsection (a) of this section, for any taxable year ending before such lasttaxable year may be assessed, notwithstanding any other provision which wouldotherwise prevent such assessment, at any time before the expiration of theperiod within which a deficiency for such last taxable year may be assessed. [L1959, c 277, pt of §14; am L Sp 1959 2d, c 1, §16; Supp, §121-45.1; HRS§235-112; am L 1979, c 62, §2(13)]