§237-40  Limitation period.  (a) 
General rule.  The amount of excise taxes imposed by this chapter shall be
assessed or levied within three years after the annual return was filed, or
within three years of the due date prescribed for the filing of the return,
whichever is later, and no proceeding in court without assessment for the
collection of any of the taxes shall be begun after the expiration of the
period.  Where the assessment of the tax imposed by this chapter has been made
within the period of limitation applicable thereto, the tax may be collected by
levy or by a proceeding in court under chapter 231; provided that the levy is
made or the proceeding was begun within fifteen years after the assessment of
the tax.  For any tax that has been assessed prior to July 1, 2009, the levy or
proceeding shall be barred after June 30, 2024.



Notwithstanding any other
provision to the contrary in this section, the limitation on collection after
assessment in this section shall be suspended for the period:



(1)  The taxpayer agrees to
suspend the period;



(2)  The assets of the taxpayer
are in control or custody of a court in any proceeding before any court of the
United States or any state, and for six months thereafter;



(3)  An offer in compromise
under section 231-3(10) is pending; and



(4)  During which the taxpayer
is outside the State if the period of absence is for a continuous period of at
least six months; provided that if at the time of the taxpayer's return to the
State the period of limitations on collection after assessment would expire
before the expiration of six months from the date of the taxpayer's return, the
period shall not expire before the expiration of the six months.



(b)  Exceptions.  In the case of a false or
fraudulent return with intent to evade tax, or of a failure to file the annual
return, the tax may be assessed or levied at any time; provided that the burden
of proof with respect to the issues of falsity or fraud and intent to evade tax
shall be upon the State.



(c)  Extension by agreement.  Where, before the
expiration of the period prescribed in subsection (a) or (d), both the
department of taxation and the taxpayer have consented in writing to the
assessment or levy of the tax after the date fixed by subsection (a) or the
credit or refund of the tax after the date fixed by subsection (d), the tax may
be assessed or levied or the overpayment, if any, may be credited or refunded
at any time prior to the expiration of the period agreed upon.  The period so
agreed upon may be extended by subsequent agreements in writing made before the
expiration of the period previously agreed upon.



(d)  Refunds.  No credit or refund shall be
allowed for any tax imposed by this chapter, unless a claim for such credit or
refund shall be filed as follows:



(1)  If an annual return is timely filed, or is filed
within three years after the date prescribed for filing the annual return, then
the credit or refund shall be claimed within three years after the date the
annual return was filed or the date prescribed for filing the annual return,
whichever is later.



(2)  If an annual return is not filed, or is filed
more than three years after the date prescribed for filing the annual return, a
claim for credit or refund shall be filed within:



(A)  Three years after the payment of the tax;
or



(B)  Three years after the date prescribed for
the filing of the annual return,



whichever is later.



Paragraphs (1) and (2) are mutually exclusive.  The
limitation shall not apply to a credit or refund pursuant to an appeal provided
for by section 237-42. [L 1943, c 140, §2; RL 1945, §5471; RL 1955, §117-35; am
L Sp 1957, c 1, §29; am L Sp 1959 2d, c 1, §16; HRS §237-40; am L 1969, c 274,
§3; am L 1971, c 9, §2; am L 1983, c 103, §1; am L 1992, c 104, §1; am L 1993,
c 257, §2; am L 2009, c 166, §7]



 



Note



 



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



 



Cross References



 



  Suspension of limitation period during bankruptcy
proceedings, see §231-3.5.



 



Case Notes



 



  No discovery tolling period applies to tax statutes.  69 H.
515, 750 P.2d 81.