TAX NEWS - April 2009

Hawaii Tax: Criminal Complaint Filed In Tax case

A 10-count criminal complaint was filed on April 21, 2009 against Rodney D. Villanueva for failing to file his annual general excise tax returns for tax years 2002 through 2006, failing to file his individual income tax returns for tax years 2002 through 2005, and filing a false individual income tax return for 2006. Arraignment is scheduled for April 30, 2009.

This complaint was filed under the provisions where Villanueva, through his attorney has agreed to plead guilty to the charges specified in the complaint. Filing a false tax return is a felony and in normal circumstances, all alleged felony violations are either filed via information or reported to a grand jury. In this case, this Plea via Complaint (PVC) was agreed upon between the defendant and the Attorney General.

Failing to file a tax return as defined in HRS § 231-35 carries a fine up to $25,000 for individuals and $100,000 for corporations per violation, a period of incarceration not to exceed a year or probation.

Filing a false tax return as defined in HRS § 231-36(a) carries a fine up to $100,000 for individuals and $500,000 for corporations per violation, a period of incarceration not to exceed three years or probation.