| (a) General. Tax Code, Chapter 151, prohibits certain
activities and provides criminal penalties for violations.
(b) Criminal offenses provided in Tax Code, Chapter
151, include, but are not limited to, the following:
(1) A seller commits an offense if the seller directly
or indirectly advertises, holds out, or states to a customer or to
the public that the tax is not part of the sales price payable by
the customer. This offense is a misdemeanor punishable by a fine of
not more than $500 for each occurrence.
(2) It is not a criminal offense if:
(A) a seller indicates in an advertisement, holding
out, or statement that the seller is paying the tax due on the purchased
item(s) for the customer;
(B) the seller does not indicate or imply in the advertisement,
holding out, or statement that the sale is exempt or excluded from
taxation; and
(C) any purchaser's receipt or other statement given
to the customer lists the sales price paid or to be paid by the customer,
separately states the amount of the tax due on the purchase price,
and indicates that the tax will be paid and remitted by the seller.
(3) A person commits an offense if the person intentionally
or knowingly makes a false entry in, or a fraudulent alteration of,
an exemption or resale certificate; makes, presents, or uses an exemption
or resale certificate with knowledge that it is false and with intent
that the certificate be accepted as valid; or intentionally conceals,
removes, or impairs the verity or legibility of an exemption or resale
certificate; or unreasonably impedes the availability of an exemption
or resale certificate. An offense is:
(A) a Class C misdemeanor if the tax avoided by the
use of the exemption or resale certificate is less than $20;
(B) a Class B misdemeanor if the tax avoided by the
use of the exemption or resale certificate is $20 or more but less
than $200;
(C) a Class A misdemeanor if the tax avoided by the
use of the exemption or resale certificate is $200 or more but less
than $750;
(D) a felony of the third degree if the tax avoided
by the use of the exemption or resale certificate is $750 or more
but less than $20,000; and
(E) a felony of the second degree if the tax avoided
by the use of the exemption or resale certificate is $20,000 or more.
(4) A person or officer of a corporation commits an
offense if the person or the corporation engages in business as a
seller in this state without a permit or with a suspended permit.
A separate offense is committed each day a person operates a business
without a permit or with a suspended permit. An offense is:
(A) a Class C misdemeanor for a first offense;
(B) a Class B misdemeanor punishable by a fine not
to exceed $2,000 for a second conviction;
(C) a Class A misdemeanor punishable by a fine not
to exceed $4,000 for a third conviction; and
(D) a Class A misdemeanor punishable by a fine not
to exceed $4,000, confinement in jail for a term not to exceed a year,
or both the fine and confinement for a fourth or subsequent conviction.
(5) A person commits an offense if the person intentionally
or knowingly fails to pay to the comptroller the tax collected by
that person. When tax is collected and not paid pursuant to one scheme
or continuous course of conduct, all such conduct may be considered
as one offense and the amounts of tax collected and not paid may be
aggregated in determining the grade of the offense. An offense is:
(A) a Class C misdemeanor if the amount of the tax
collected and not paid is less than $50;
(B) a Class B misdemeanor if the amount of the tax
collected and not paid is $50 or more but less than $500;
(C) a Class A misdemeanor if the amount of the tax
collected and not paid is $500 or more but less than $1,500;
(D) a state jail felony if the amount of the tax collected
and not paid is $1,500 or more but less than $20,000;
(E) a felony of the third degree if the amount of the
tax collected and not paid is $20,000 or more but less than $100,000;
(F) a felony of the second degree if the amount of
the tax collected and not paid is $100,000 or more but less than $200,000;
and
(G) a felony of the first degree if the amount of the
tax collected and not paid is $200,000 or more.
(6) A person commits an offense if the person refuses
to furnish a report as required by Tax Code, Chapter 151, or by the
comptroller. An offense is:
(A) a Class C misdemeanor for a first offense;
(B) a Class B misdemeanor punishable by a fine not
to exceed $2,000 for a second conviction; and
(C) a Class A misdemeanor punishable by a fine not
to exceed $4,000 for a third or subsequent conviction.
(7) A person commits an offense if the person intentionally
or knowingly conceals, destroys, makes a false entry in, or fails
to make an entry in records that are required to be made or kept under
Tax Code, Chapter 151. An offense is a felony of the third degree.
(8) A person commits an offense if the person fails
to produce or allow inspection of a record that is required to be
kept under Tax Code, Chapter 151, within an allowed period of time
after a person who is authorized by the comptroller requests the record.
Except as provided in paragraph (9) of this subsection, an offense
is a Class C misdemeanor. A separate offense is committed each day
the person fails to allow inspection of records or fails to produce
records after the allowed time period expired. See subsection (c)
of this section for certain restrictions.
(9) A person commits an offense if the person intentionally
fails to produce to the comptroller records that document the taxpayer's
taxable sale of items that the taxpayer obtained using a resale certificate.
The records to which the offense applies are those required to be
kept under Tax Code, §151.025 (Records Required to be Kept),
which were requested by the comptroller under Tax Code, §151.023
(Investigations and Audits) and which are not produced in the period
required by that section. The items to which the offense applies are
items the sales of which are required to be reported to the comptroller
under Tax Code, §§151.433 (Reports by Wholesalers and Distributors
of Beer, Wine, and Malt Liquor), 154.212 (Reports by Wholesalers and
Distributors of Cigarettes), or 155.105 (Reports by Wholesalers and
Distributors of Cigars and Tobacco Products). It is an affirmative
defense to prosecution under this paragraph that the items listed
for purchase on the resale certificate had not been resold at the
time of the comptroller's request for records under Tax Code, §151.023.
If the conduct described by this paragraph is related to one scheme
or continuous course of conduct, all such conduct may be considered
as one offense and the amounts aggregated in determining the grade
of the offense. See subsection (c) of this section for certain restrictions.
An offense is:
(A) a Class C misdemeanor if the tax avoided by use
of the resale certificate is less than $20;
(B) a Class B misdemeanor if the tax avoided by use
of the resale certificate is $20 or more but less than $200;
(C) a Class A misdemeanor if the tax avoided by use
of the resale certificate is $200 or more but less than $750;
(D) a felony of the third degree if the tax avoided
by use of the resale certificate is $750 or more but less than $20,000;
or
(E) a felony of the second degree if the tax avoided
by use of the resale certificate is $20,000 or more.
(c) Inspection and demand for production. Tax Code, §151.023
permits the comptroller to inspect business premises where a taxable
event has occurred and to issue a written demand notice to a taxpayer
or to an employee, an authorized representative, or agent of the taxpayer
for the production of documents within 10 business days of delivery
of the notice. This authority will be exercised within the parameters
outlined in §3.281(f) of this title (relating to Records Required;
Information Required). The comptroller may file criminal charges with
appropriate authorities for violations of Tax Code, §151.023,
if the taxpayer fails to permit inspection or fails to produce documents
in response to a demand by the comptroller's Enforcement Division
or Criminal Investigation Division.
(d) Confidential information. The comptroller or the
attorney general may use taxpayer information or records made confidential
by Tax Code, Title 2 to enforce Tax Code, Title 2 or the criminal
laws of Texas or the United States, or may authorize the use of information
or records made confidential by Tax Code, Title 2 in a judicial or
administrative proceeding in which this state, another state, or the
federal government is a party.
(e) Penal Code.
Cont'd... |
