§245-7  Determination of taxes;additional assessments, credits, and refunds.  (a)  As soon as practicableafter each return shall have been filed, the department of taxation shall causeit to be examined and shall compute and determine the amount of the taxespayable thereon.

(b)  If it should appear upon the examinationor within five years after the filing of the return, or at any time if noreturn has been filed, as a result of the examination, or as a result of anyexamination of the records of the wholesaler or dealer, or of any other inquiryor investigation, that the correct amount of the taxes is greater than thatshown on the return, or that any taxes imposed by this chapter have not beenpaid, an assessment of the taxes may be made in the manner provided in section235-108(b).  The amount of the taxes for the period covered by the assessmentshall not be reduced below the amount determined by an assessment so made,except upon appeal or in a proceeding brought pursuant to section 40-35.

(c)  If the wholesaler or dealer has paid orreturned with respect to any month more than the amount determined to be thecorrect amount of taxes for the month, the amount of the taxes so returned andany assessment of taxes made pursuant to the return may be reduced, and anyoverpayment of taxes may be credited upon the taxes imposed by this chapter, orat the election of the wholesaler or dealer, the wholesaler or dealer not beingdelinquent in the payment of any taxes owing to the State, may be refunded inthe manner provided in section 231-23(c); provided that no reduction of taxesmay be made when forbidden by subsection (b) or more than five years after thefiling of the return. [L 1939, c 220, §8; RL 1945, §5757; RL 1955, §125-7; am LSp 1957, c 1, §29; am L Sp 1959 2d, c 1, §16; am L 1963, c 45, §8; HRS §245-7;gen ch 1985; am L 1993, c 220, §12; am L 2000, c 249, §§7, 20(2)]