§237-39  Audits; procedure, penalties. For the purpose of verification or audit of a return made by the taxpayer, orwhere there is reasonable ground to believe that any return made is sodeficient as not to form the basis of a satisfactory assessment of the tax, orfor the purpose of making an assessment where no return has been made, thedepartment of taxation or the Multistate Tax Commission pursuant to chapter 255or the authorized representative thereof may examine all account books, bankbooks, bank statements, records, vouchers, taxpayer's copies of federal taxreturns, and any and all other documents and evidences having any relevancy tothe determination of the gross income or gross proceeds of sales of anytaxpayer as required to be returned under this chapter and may summon orrequire the attendance of the person by or for whom the return, if any, hasbeen made or whose tax is being assessed, and any employee of the person, andmay summon or require the attendance of any person having knowledge in thepremises, naming the time and place in the summons, and may require theproduction of any books, statements, or other evidences open to hisexamination, and may take testimony in reference to any such matter relevant tothe gross income or gross proceeds of sales of the taxpayer for the periodunder consideration, with power to require that the person so called andappearing shall be interrogated under oath and to administer the oath.

If the department determines that any grossincome or gross proceeds of sales liable to the tax have not been assessed thedepartment may assess the same as provided in sections 237-36 and 237-38.

Any individual knowingly giving false testimonyunder oath at any such hearing before the department shall be guilty of perjuryand shall be punished as provided by law.

Any person refusing or neglecting to obey anysummons issued by the department, and any individual appearing and refusing totestify under oath, shall be fined $50 for the first offense and $100 for eachsucceeding offense. [L 1941, c 265, §7; RL 1945, §5470; RL 1955, §117-34; am LSp 1959 2d, c 1, §16; HRS §237-39; am L 1974, c 139, §6]