HI SB2377

Adds a new penalty provision to Hawaii Revised Statutes Chapter 231 for taxpayers who fail to respond to Department of Taxation correspondence or inquiries during tax inspections or examinations of records.

Penalty equals twenty-five percent of the tax owed, with a maximum penalty cap of $10,000.

Director of Taxation may waive the penalty if the failure to respond was due to reasonable cause.

Does not apply retroactively to rights, duties, penalties, or proceedings that existed before the effective date.

Takes effect upon approval.