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154.20.262 Penalties and interest -- Liability of investors -- Powers and duties of Department of Revenue.

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Page 1 of 1 154.20-262 Penalties and interest -- Liability of investors -- Powers and duties of Department of Revenue. (1) An investment fund that violates the provisions of KRS 154.20-250 to 154.20-284 shall pay to the State Treasurer a penalty in an amount equal to the amount of all <br>credits claimed by the investors when these credits are determined to be derived <br>from unqualified investments, plus interest at the rate of two percent (2%) per <br>month, compounded monthly, from the date the credits were taken. If the <br>investment fund fails to pay the penalty and interest in full as required by the <br>Department of Revenue, each investor shall be personally liable to the Department <br>of Revenue for that investor's share of the unpaid penalty, which shall be <br>determined by the amount of credits received and utilized by the investor and all <br>applicable interest. Any payment of unpaid penalty by an investor shall be included <br>with the investor's state tax return for the period in which the failure or violation <br>occurred. The commissioner of the Department of Revenue shall give notice in <br>writing to the authority, the investment fund manager, and the investors of any <br>penalties imposed. The commissioner of the Department of Revenue may abate any <br>imposed penalty upon written request, if the investment fund manager establishes <br>reasonable cause for the failure to make qualified investments in small businesses <br>under the provisions of KRS 154.20-250 to 154.20-284, or to otherwise comply <br>with the provisions of KRS 154.20-250 to 154.20-284. The State Treasurer shall <br>deposit any amounts received pursuant to this section in the Commonwealth's <br>general fund. (2) The administration of this section shall be the responsibility of the Department of Revenue. Effective: June 20, 2005 <br>History: Amended 2005 Ky. Acts ch. 85, sec. 573, effective June 20, 2005. -- Created 2002 Ky. Acts ch. 230, sec. 22, effective July 15, 2002.