Sec. 12-330i. Deficiency assessment. Penalty provisions. Assessment of tax when no return is filed.
Sec. 12-330i. Deficiency assessment. Penalty provisions. Assessment of tax
when no return is filed. (a) Each distributor and each unclassified importer shall keep
complete and accurate records of all tobacco products manufactured, produced, purchased and sold. Such records shall be of such kind and in such form as the commissioner
may prescribe and shall be safely preserved for three years in such manner as to ensure
permanency and accessibility for inspection by the commissioner and his authorized
agents. The commissioner and his authorized agents may examine the books, papers
and records of any distributor or unclassified importer in this state for the purpose of
determining whether the tax imposed by this chapter has been fully paid, and may investigate and examine the stock of tobacco products in or upon any premises where such
tobacco products are possessed, stored or sold for the purpose of determining whether
the provisions of this chapter are being obeyed. If, after an examination of the invoices,
books and records of a licensed distributor or unclassified importer, or if, from any other
information obtained by him or his authorized agents, the commissioner determines that
the report of any licensed distributor or licensed unclassified importer is incorrect, he
shall thereupon assess the deficiency in tax. 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
this chapter or regulations promulgated 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 this chapter
or regulations promulgated thereunder, there shall be imposed a penalty equal to twenty-five per cent of the amount of such deficiency assessment. No taxpayer shall be subject
to more than one penalty under this subsection in relation to the same tax period. The
amount of any tax, penalty or interest due and unpaid under the provisions of this chapter
may be collected under the provisions of section 12-35. The warrant therein provided
for shall be signed by the commissioner or his authorized agent. The amount of any
such tax, penalty and interest shall be a lien, from the last day of the month next preceding
the due date of such tax until discharged by payment, against all real estate of the taxpayer
within the state, and a certificate of such lien signed by the commissioner may be filed
for record in the office of the clerk of any town in which such real estate is situated,
provided no such lien shall be effective as against any bona fide purchaser or qualified
encumbrancer of any interest in any such property. When any tax with respect to which
a lien has been recorded under the provisions of this section has been satisfied, the
commissioner, upon request of any interested party, shall issue a certificate discharging
such lien, which certificate shall be recorded in the same office in which the lien is
recorded. Any action for the foreclosure of such lien shall be brought by the Attorney
General in the name of the state in the superior court for the judicial district in which
the property subject to such lien is situated, or, if such property is located in two or more
judicial districts, in the superior court for any one such judicial district, and the court
may limit the time for redemption or order the sale of such property or make such other
or further decree as it judges equitable.
(b) Except in the case of a wilfully false or fraudulent return with intent to evade
the tax, no assessment of additional tax with respect to any return shall be made after
the expiration of more than three years from the date of the filing of such return or from
the original due date of such return, whichever is later. If no return has been filed as
provided in this chapter the commissioner may make such return at any time thereafter,
according to the best information obtainable and according to the form prescribed. To
the tax imposed upon the basis of such return, there shall be added an amount equal to
ten per cent of such tax, or fifty dollars, whichever is greater. The tax shall bear interest
at the rate of one per cent per month or fraction thereof from the due date of such tax
to the date of payment. If prior to the expiration of the period prescribed in this section
for the assessment of additional tax, a taxpayer 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. Any such extended period may be further extended by
consent in writing before the expiration of such extended period.
(P.A. 89-251, S. 32, 203; May Sp. Sess. P.A. 94-4, S. 56, 85; P.A. 95-26, S. 13, 52; 95-160, S. 64, 69.)
History: May Sp. Sess. P.A. 94-4 in Subsec. (b) reduced interest rate from 1.25% to 1% and provided that such interest
may only be applied on the tax rather than on the tax and any penalty, effective July 1, 1995, and applicable to taxes due
and owing on or after said date; P.A. 95-26 amended Subsec. (a) to lower interest rate from 1.25% to 1% and made technical
changes, effective July 1, 1995, and applicable to taxes due and owing on or after July 1, 1995, whether or not those taxes
first became due before said date; P.A. 95-160 revised effective date of May Sp. Sess. P.A. 94-4 but without affecting
this section.