Current Status Bill Number:340 Ratification Number:123 Type of Legislation:General Bill GB Introducing Body:Senate Introduced Date:19970211 Primary Sponsor:Leatherman All Sponsors:Leatherman Drafted Document Number:dka\4034mm.97 Date Bill Passed both Bodies:19970529 Governor's Action:V Date of Governor's Action:19970610 Action on Governor's Veto:S Subject:Income taxes, filing false returns, withholding exemption, appeals; Taxation
Body Date Action Description Com Leg Involved
______ ________ _______________________________________ _______ ____________
Senate 19970617 Veto sustained
------ 19970610 Vetoed by Governor
------ 19970604 Ratified R123
House 19970529 Read third time, enrolled for
ratification
House 19970528 Read second time
House 19970527 Debate adjourned until
Wednesday, 19970528
House 19970527 Judiciary Committee amendment ruled
out of order
House 19970527 Objection and request for debate
withdrawn by Representative Vaughn
Tripp
Whatley
Loftis
Knotts
Riser
House 19970522 Request for debate withdrawn
by Representative Felder
House 19970515 Request for debate withdrawn
by Representative Haskins
Robinson
House 19970514 Request for debate by Representative Knotts
Riser
Robinson
Haskins
Felder
Loftis
Vaughn
House 19970514 Objection by Representative Tripp
Whatley
House 19970508 Committee report: Favorable with 25 HJ
amendment
House 19970402 Introduced, read first time, 25 HJ
referred to Committee
Senate 19970402 Read third time, sent to House
Senate 19970313 Read second time, notice of
general amendments
Senate 19970312 Committee report: Favorable 06 SF
Senate 19970211 Introduced, read first time, 06 SF
referred to Committee
View additional legislative information at the LPITS web site.
COMMITTEE REPORT
May 8, 1997
S. 340
S. Printed 5/8/97--H.
Read the first time April 2, 1997.
To whom was referred a Bill (S. 340), to amend Section 12-54-40, as amended, Code of Laws of South Carolina, 1976, relating to collection and enforcement of taxes, etc., respectfully
That they have duly and carefully considered the same, and recommend that the same do pass with amendment:
Amend the bill, as and if amended, by adding appropriately numbered SECTIONS to read:
/SECTION __. Section 8-13-725 of the 1976 Code, as added by Act 248 of 1991, is amended to read:
"Section 8-13-725. (A) No A public official, public member, or public employee may not use or disclose confidential information gained in the course of or by reason of his official responsibilities in any a way that would affect an economic interest held by himself him, a member of his immediate family, an individual with whom he is associated, or a business with which he is associated.
(B)(1) A public official, public member, or public employee may not wilfully examine, or aid and abet in the wilfull examination of, a tax return of a taxpayer, a worker's compensation record, a record in connection with health or medical treatment, social services records, or other records of an individual in the possession of or within the access of a public department or agency if the purpose of the examination is improper or unlawful.
(2) A person convicted of violating this subsection must be fined not more than five thousand dollars, or imprisoned not more than five years, or both, and shall reimburse the costs of prosecution. Upon conviction, the person also must be discharged immediately from his public capacity as an official, member, or employee."
SECTION __. Chapter 54, Title 12 of the 1976 Code is amended by adding:
"Section 12-54-255. (A) A person who by force or threats of force, including a threatening letter or communication, endeavors to intimidate or impede an officer or employee of the Department of Revenue acting in an official capacity, or in another way by force or threats of force, including a threatening letter or communication, obstructs or impedes, or endeavors to obstruct or impede, the due administration of this title or Title 61, upon conviction, must be fined not more than five thousand dollars or imprisoned not more than five years, or both.
The term 'threats of force' as used in this subsection, means threats of bodily harm to the officer or employee of the department or to a member of his family.
(B) A person who forcibly rescues or causes to be rescued property after it has been seized under this title or Title 61, or attempts to do so, must be fined not more than five hundred dollars, or not more than double the value of the property rescued, whichever is greater, or imprisoned not more than two years."
SECTION __. Section 16-3-1040 of the 1976 Code, as last amended by Act 579 of 1990, is further amended to read:
"Section 16-3-1040. (A) It is unlawful for any a person to knowingly and wilfully to deliver or convey to a public official or to a teacher or principal of an elementary or secondary school any to a public employee a letter or paper, writing, print, missive, document, or electronic communication or any verbal or electronic communication which contains any a threat to take the life of or to inflict bodily harm upon the public official or public employee, teacher, or principal, or members of their immediate families.
(B) Any A person violating who violates the provisions of this section must, upon conviction, must be punished by a term of imprisonment of fined not more than five thousand dollars or imprisoned not more than five years, or both.
(C) For purposes of this section:
(1) 'Public official' means any an elected or appointed official of the United States or of this State or of a county, municipality, or other political subdivision of this State.
(2) 'Public employee' means a person employed by the State, a county, a municipality, a school district, or a political subdivision of this State.
(3) 'Immediate family' means the spouse, child, grandchild, mother, father, sister, or brother of the public official, teacher, or principal public employee."/
Renumber sections to conform.
Amend totals and title to conform.
DOUG SMITH, for Committee.
TO AMEND SECTION 12-54-40, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO COLLECTION AND ENFORCEMENT OF TAXES BY THE STATE, SO AS TO INCREASE THE FINE FOR FILING A FALSE RETURN FOR DELAY PURPOSES, TO REQUIRE AWARD OF DAMAGES BY THE ADMINISTRATIVE LAW JUDGE RATHER THAN THE CIRCUIT COURT FOR FRIVOLOUS OR DILATORY PROCEEDINGS, AND TO REDUCE JAIL SENTENCE FROM ONE YEAR TO THIRTY DAYS FOR WILFULLY SUPPLYING FALSE WITHHOLDING INFORMATION TO EMPLOYER; TO AMEND SECTION 12-54-46, RELATING TO FILING OF FALSE EXEMPTION CERTIFICATE, SO AS TO DELETE THE LIMIT ON THE TOTAL PENALTY AMOUNT; TO AMEND SECTION 12-8-1030, RELATING TO DETERMINATION OF PROPER WITHHOLDING EXEMPTION BY THE DEPARTMENT OF REVENUE, SO AS TO PROVIDE FOR AN ADMINISTRATIVE PROCEDURE FOR APPEALING THE DETERMINATION; AND TO REPEAL SECTION 12-54-45 RELATING TO THE PENALTY FOR SUPPLYING EMPLOYER WITH FALSE INFORMATION.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 12-54-40(b)(4), (5), and (6) of the 1976 Code, as last amended by Act 184 of 1993, is further amended to read:
"(4)(a) A person who files what purports to be a return of the tax imposed by any provision of law administered by the Commission department but which:
(1) does not contain information on which the substantial correctness of the tax liability may be judged,; or
(2) contains information that on its face indicates the liability is substantially incorrect; and
(b) the conduct referred to in paragraph (a) is due to:
(1) a position which is frivolous,; or
(2) a desire, (which appears on the purported return), to delay or impede the administration of state tax laws, then the person is liable to a penalty of two thousand five hundred dollars. This penalty is in addition to all other penalties provided by law.
(5) Whenever If it appears to the circuit court an administrative law judge that proceedings before it have been instituted or maintained by the taxpayer primarily for delay or that the taxpayer's position in the proceedings is frivolous or groundless, damages in an amount not to exceed five thousand dollars must be awarded to the State by the circuit court administrative law judge in its his decision. Damages so awarded must be assessed at the same time as the deficiency and paid upon notice and demand from the commission department and collected as a part of the tax.
(6)(a) A person who wilfully attempts in any manner to evade or defeat any a tax or property assessment imposed by any a title administered by the commission department or the payment thereof of it is, in addition to other penalties provided by law, is guilty of a felony and, upon conviction, must be fined not more than ten thousand dollars or imprisoned not more than five years, or both, together with the cost of prosecution.
(b) A person required under any a provision of law administered by the commission department to collect, account for, and pay over any a tax imposed by any a provision of law who wilfully fails to collect or truthfully account for and pay over the tax is, in addition to other penalties provided by law, is guilty of a felony and, upon conviction, must be fined not more than ten thousand dollars or imprisoned not more than five years, or both, together with the cost of prosecution.
(c) A person required under any a provision of law administered by the commission department to pay any an estimated tax or tax, or required by any provision of law or by any regulation to make a return, keep any records, or supply any information, who wilfully fails to pay the estimated tax or tax, make the return, keep the records, or supply the information, at the time or times required by law or regulation is, in addition to other penalties provided by law, is guilty of a misdemeanor and, upon conviction, must be fined not more than ten thousand dollars, or imprisoned not more than one year, or both, together with the cost of prosecution.
(d) In lieu of any other penalty provided by law, any A person required by law or regulation to furnish a statement who wilfully furnishes a false or fraudulent statement in the manner, at the time, and showing the information required by law or regulation, is, instead of any other penalty provided by law, guilty of a misdemeanor and, upon conviction, must be fined not more than one thousand dollars or imprisoned not more than one year, or both.
(e) An individual A person required to supply information to his employer under Chapter 9 (8) of Title 12 who wilfully supplies false or fraudulent information, or who wilfully fails to supply information thereunder which would require an increase in the tax to be withheld under Chapter 9 (8), Title 12 is, in lieu instead of any other penalty provided, is guilty of a misdemeanor and, upon conviction, must be fined not more than five hundred dollars, or imprisoned not more than one year not more than thirty days, or both. Offenses in this section are triable in magistrate's court.
(f) A person who:
(1) wilfully makes and subscribes any return, statement, or other document, which contains or is verified by a written declaration that it is made under the penalties of perjury, and which he does not believe to be true and correct as to every material matter, is guilty of a felony and, upon conviction, must be fined not more than five hundred dollars or imprisoned not more than five years, or both, together with the cost of prosecution; or
(2) wilfully assists in, or procures, counsels, or advises the preparation or presentation under, or in connection with any a matter arising under those provisions of law administered by the commission department of a return, affidavit, claim, or other document, which is fraudulent, or is false as to any a material matter, whether or not the falsity or fraud is with the knowledge or consent of the person authorized or required to present the return, affidavit, claim, or document, is guilty of a felony and, upon conviction, must be fined not more than five hundred dollars or imprisoned not more than five years, or both, together with the cost of prosecution.;
(3) wilfully removes, deposits, or conceals, or is concerned in removing, depositing, or concealing any goods or commodities for which any a tax is or must be imposed, or any property upon which levying is authorized pursuant to law, with intent to evade or defeat the assessment or collection of any a tax imposed by this provision of law administered by the commission department, is guilty of a misdemeanor and, upon conviction, must be fined not more than five thousand dollars or imprisoned not more than three years, or both, together with the cost of prosecution.;
(4) in connection with the preparation of a tax return for another, the filing of a tax return, or the payment of any a tax, receives money from the payment of any a tax, receives money from the other person with the understanding that it is to be paid over to the commission department to discharge, in whole or in part, the other person's tax liability and wilfully fails to pay over the same to the commission department is guilty of a misdemeanor and, upon conviction, must be fined not more than five thousand dollars or imprisoned for not more than three years, or both, for each offense together with the cost of prosecution.; or
(5) wilfully delivers or discloses to the commission department any a list, return, account, statement, or other document known by him to be fraudulent or to be false as to any a material matter, is guilty of a misdemeanor and, upon conviction, must be fined not more than five thousand dollars or imprisoned for not more than one year, or both."
SECTION 2. Section 12-54-46 of the 1976 Code, as added by Act 76 of 1995, is amended to read:
"Section 12-54-46. If an employee files a false or fraudulent exemption certificate with intent to evade any tax, the employee An individual required to supply information to his employer under Chapter 8 of Title 12 who supplies a withholding exemption certificate which exceeds the number of exemptions to which he is entitled is liable for a penalty of not less than fifty dollars for each fraudulent exemption claimed, not to exceed a total of one thousand dollars that exceeds the number to which he is entitled. The penalty is assessed and collected in the same manner as income tax penalties."
SECTION 3. Section 12-8-1030 of the 1976 Code, as added by Act 76 of 1995, is amended to read:
"Section 12-8-1030. (A) An employer who believes an employee's withholding exemption certificate is incorrect shall furnish a copy of the certificate to the department within thirty days after it is received. If the department determines the withholding exemption certificate is incorrect, the employer and employee must be notified of the rate at which income taxes must be withheld. The determination may be appealed in writing by the employee within thirty days after the decision is rendered.
(B) If an employer furnishes a copy of an employee's withholding exemption certificate to the department, or if the department for any other reason believes an employee's withholding exemption certificate may be incorrect, the department may request that the employee submit written verification of the statements on the certificate within thirty days. If the department determines, upon review, the information is incorrect, it shall inform the employee that the exemption certificate is invalid. If the withholding exemption certificate is determined to be correct, the department shall notify the employer within thirty days.
(C)(1) The determination by the department may be appealed as provided under the Revenue Procedures Act within thirty days after the department's decision is rendered. After final review of the appeal, the department shall notify the employer of the correct number of exemptions to allow in computing the employee's withholding. Final review of the appeal includes the final decision of the Administrative Law Judge Division or court if the matter was heard by the Administrative Law Judge Division or appealed to a court.
(2) If the employee does not appeal the department's determination, the department shall notify the employer of the correct number of exemptions to allow in computing the employee's withholding. The correct number of exemptions, as determined by the department, Administrative Law Judge Division, or court, must begin on the first payroll period ending on or after the date the employer receives notification."
SECTION 4. Section 12-54-45 of the 1976 Code is repealed.
SECTION 5. This act takes effect upon approval by the Governor.