TAX NEWS - February 2009

Hawaii Tax: Fraudelent Tax Refund Scheme Organizer Pleads Guilty

On January 28, 2009, before the Honorable Derrick H.M. Chan, an Oahu woman pled no contest to a total of 26 counts in connection with a fraudulent refund scheme that spanned three years. Icelane Kuhiiki filed thirteen false and fraudulent State of Hawaii income tax returns for the tax years 2005, 2006 and 2007, claiming fictitious tax refunds.

According to the complaint, Icelane Kuhiiki used Social Security numbers of seven individuals and false income amounts in each of the thirteen tax filings. Ms. Kuhiiki is charged with thirteen counts of false and fraudulent tax returns, ten counts of theft in the second degree and three counts of attempted theft in the second degree.

Each filing of a false tax return as defined in HRS §231-36, is a class C felony that upon conviction, is punishable by a term of imprisonment of not more than three years and a fine of not more than $100,000.

Each count of theft in the second degree as defined in HRS §708-830(2) & HRS §708-831(1)(b), is a class C felony that upon conviction, is punishable by a term of imprisonment of not more than five years and a fine of not more than $10,000.

Ms. Kuhiiki will be sentenced before Judge Derrick Chan on April 14, 2009 at the Circuit Court of the First Judicial Circuit, Honolulu, Hawai'i.