Sec. 12-263d. Examination of records. Penalties related to deficiency assessments.
Sec. 12-263d. Examination of records. Penalties related to deficiency assessments. (a) The Commissioner of Revenue Services may examine the records of any
hospital subject to a tax imposed under the provisions of sections 12-263a to 12-263e,
inclusive, as he may deem necessary. If he shall determine therefrom that there is a
deficiency with respect to the payment of any such tax due under the provisions of said
sections 12-263a to 12-263e, inclusive, he shall assess the deficiency in tax, give notice
of such deficiency assessment to the hospital and make demand thereupon for payment.
Such amount shall bear interest at the rate of one per cent per month or fraction thereof
from the date when the original tax was due and payable. When it appears that any part
of the deficiency for which a deficiency assessment is made is due to negligence or
intentional disregard of the provisions of said sections 12-263a to 12-263e, inclusive,
or regulations adopted thereunder, there shall be imposed a penalty equal to ten per cent
of the amount of such deficiency assessment, or fifty dollars, whichever is greater. When
it appears that any part of the deficiency for which a deficiency assessment is made is
due to fraud or intent to evade the provisions of sections 12-263a to 12-263e, inclusive,
or regulations adopted thereunder, there shall be imposed a penalty equal to twenty-five per cent of the amount of such deficiency assessment. No hospital shall be subject
to more than one penalty under this subsection in relation to the same tax period. Within
thirty days of the mailing of such notice, the hospital shall pay to the commissioner, in
cash, or by check, draft or money order drawn to the order of the Commissioner of
Revenue Services, any additional amount of tax, penalty and interest shown to be due.
(b) Except in the case of a wilfully false or fraudulent return with intent to evade
the tax, no assessment of additional tax shall be made after the expiration of more than
three years from the date of the filing of a return or from the original due date of a return,
whichever is later. If no return has been filed as provided under the provisions of section
12-263b, the commissioner may make such return at any time thereafter, according to
the best information obtainable and according to the form prescribed. Where, before
the expiration of the period prescribed herein for the assessment of an additional tax, a
hospital has consented in writing that such period may be extended, the amount of such
additional tax due may be determined at any time within such extended period. The
period so extended may be further extended by subsequent consents in writing before
the expiration of the extended period.
(P.A. 94-9, S. 24, 41; P.A. 95-359, S. 12, 19.)
History: P.A. 94-9 effective April 1, 1994; P.A. 95-359 amended Subsec. (a) to reduce interest rate from 1.66 to 1%,
effective July 1, 1995, and applicable to taxes due and owing on or after that date.