This bill has been amended

Bill S3260-2013

Enacts the anti-automated sales suppression act

Enacts the anti-automated sales suppression act.

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  • Jan 8, 2014: REFERRED TO CONSUMER PROTECTION
  • Jan 31, 2013: REFERRED TO CONSUMER PROTECTION

Memo

BILL NUMBER:S3260

TITLE OF BILL: An act to amend the general business law and the tax law, in relation to enacting the anti-automated sales suppression act

PURPOSE: 1. Establishes prohibitions, presumptions and penalties related to the use or sale of automated sales suppression technology. 2. Creates an automated sales suppression tax amnesty program.

SUMMARY OF PROVISIONS:

§ 2. 396-ttt. Automated Sales Suppression Countermeasures.

1. Definitions.

2. Zapper and phantom-ware prohibitions and presumptions.

3. Zapper and phantom-ware penalties.

§ 3 1113. Automated Sales Tax Suppression Tax Amnesty.

1. Establishes an amnesty program for individuals who have used zappers or phantom-ware to distort their sales tax liabilities to the State.

2. Applicable tax liabilities for taxable periods ending or transactions or uses occurring on or before February 28, 2012.

3. Amnesty eligibility.

4. Penalty waivers for amnesty program participants.

5. Prohibitions against civil, administrative or criminal actions or proceedings concerning a tax liability which is subject to a waiver.

6. Excludes from the amnesty program taxpayers who are part of various types of criminal, investigation or administrative proceeding or civil or criminal litigation.

7. Amnesty tax return forms.

8. Refund prohibitions.

9. More refund prohibitions.

10. Amnesty program payment requirements.

11. Amnesty program administration.

12. Definitions.

13. Monthly zapper tax amnesty reports.

14. Final zapper tax amnesty report, due February 28, 2014.

§ 4. Effective Date

EXISTING LAW: None.

JUSTIFICATION: For years, foreign countries with national sales taxes have struggled to combat technology that enables retailers to skim sales taxes and under report other tax liabilities (e.g. personal income tax, corporate income tax) by concealing from auditors their actual sales data. This technology, which includes so-called "zappers" and "phantom-ware," automatically suppresses digital sales figures recorded at electronic cash registers.

It is difficult for auditors to detect the use of zappers and phantom-ware through the traditional process of cross checking transaction documents because the technology conceals almost all traces of the digital manipulation. Countries such as Germany and Greece have required retailers to install technological counter measures that make it easier for auditors to detect the Use of zappers and Phantom-ware.

Because the United States lacks a national sales tax, there is no federal initiative to combat this tax fraud and most states are ill-prepared to deal with this issue. Nationwide, only a handful of people have been Caught using this technology, including two in Michigan and one in Connecticut. Richard T. Ainsworth, a Boston University School of Law tax professor and a leading expert on zappers, has published several papers documenting the spread of zappers and phantom-ware in Quebec, Greece, Germany, the Netherlands and other European nations. Given that the first zappers were made in the united states and that this technology is widely used in the Canadian province just above New York's northern border, it is imperative for the State to address this issue.

The legislation would establish prohibitions, presumptions and penalties related to the use and sale of automated sales suppression technology. These prohibitions, presumptions and penalties are modeled after provisions in Quebec's anti-zapper statutes. A first-of-its kind tax amnesty program would also be established under this legislation for taxpayers with tax liabilities stemming from the use of zappers or phantom-ware.

FISCAL IMPACTS: Through the enforcement of the penalties and prohibitions established by this legislation and aggressive auditing, New York State could recover an estimated $107.9 million to $197.8 million of the estimated $1.796 billion the State fails to collect annually from the restaurant industry due to automated sales suppression technology, according to Richard T. Ainsworth, an Adjunct Professor of Law at Boston University School of Law and the Tax Director of International Government Affairs at ADP. These estimates are based on the 6 percent-to-11 percent recovery rates that European nations such as the Netherlands, have experienced after enacting similar statutory prohibitions and penalties for zappers and phantom-ware.

The $1.796 billion statewide estimate, also provided by Professor Ainsworth, is based on zapper-related income and consumption tax information from the Canadian province of Quebec, which has conducted multiple studies over the past decade on the impact of automated sales suppression technology in the Canadian province. The $1.798 billion

estimate assumes that if New York State's economy is three times the size of Quebec's economy then the volume of restaurant business in New York is approximately three times the volume of restaurant business in Quebec.

The estimate is also based on the assumption that New Yorkers eat out at least as much as people in Quebec do, and pay for their meals in cash roughly at the same ratio as they do in Quebec. Statistical measures for losses in other sectors of the cash economy have not been performed in Quebec, and Professor Ainsworth has not estimated or speculated on the size of additional losses in New York from similar sales suppression activities in other vulnerable sectors of the economy.

EFFECTIVE DATE: This act shall take effect ninety days after enactment.


Text

STATE OF NEW YORK ________________________________________________________________________ 3260 2013-2014 Regular Sessions IN SENATE January 31, 2013 ___________
Introduced by Sens. KRUEGER, ADDABBO, DILAN, PARKER, STAVISKY -- read twice and ordered printed, and when printed to be committed to the Committee on Consumer Protection AN ACT to amend the general business law and the tax law, in relation to enacting the anti-automated sales suppression act THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Short title. This act shall be known and may be cited as the "anti-automated sales suppression act". S 2. The general business law is amended by adding a new section 396- ttt to read as follows: S 396-TTT. AUTOMATED SALES SUPPRESSION. 1. DEFINITIONS. AS USED IN THIS SECTION: (A) "AUTOMATED SALES SUPPRESSION DEVICE" OR "ZAPPER" SHALL MEAN A SOFTWARE PROGRAM, CARRIED ON A MEMORY STICK, REMOVABLE COMPACT DISC, ACCESSED THROUGH AN INTERNET LINK OR ACCESSED THROUGH ANY OTHER MEANS, THAT FALSIFIES THE ELECTRONIC RECORDS OF POINT-OF-SALE SYSTEMS FOR THE PURPOSE OF TAX EVASION. (B) "CERTIFICATE OF INCORPORATION" SHALL MEAN A CERTIFICATE OF INCOR- PORATION AS DEFINED IN SUBPARAGRAPH THREE OF PARAGRAPH (A) OF SECTION ONE HUNDRED TWO OF THE BUSINESS CORPORATION LAW. (C) "DEPARTMENT" SHALL MEAN THE STATE DEPARTMENT OF TAXATION AND FINANCE. (D) "ELECTRONIC CASH REGISTER" SHALL MEAN A DEVICE THAT KEEPS A REGIS- TER OR SUPPORTING DOCUMENTS THROUGH THE MEANS OF AN ELECTRONIC DEVICE OR COMPUTER SYSTEM DESIGNED TO RECORD TRANSACTION DATA FOR THE PURPOSE OF COMPUTING, COMPILING OR PROCESSING RETAIL SALES TRANSACTION DATA IN WHATEVER MANNER. (E) "PHANTOM-WARE" SHALL MEAN A HIDDEN, PRE-INSTALLED OR INSTALLED AT A LATER TIME PROGRAMMING OPTION EMBEDDED IN THE OPERATING SYSTEM OF A ELECTRONIC CASH REGISTER OR HARD WIRED INTO THE ELECTRONIC CASH REGISTER
THAT CAN BE USED TO CREATE A VIRTUAL SECOND TILL AND MAY PRESERVE A DIGITAL RECORD OR MAY ELIMINATE, OR MANIPULATE RECORDS THAT MAY OR MAY NOT BE PRESERVED IN DIGITAL FORMATS TO REPRESENT THE TRUE OR MANIPULATED RECORD OF TRANSACTIONS IN THE ELECTRONIC CASH REGISTER. (F) "SUPPORTING DOCUMENTS" SHALL MEAN ANY RECEIPT, INVOICE OR REPORT THAT PROVIDES A RECORD OR TRANSACTION DATA OR TRANSACTION REPORTS. (G) "TRANSACTION DATA" SHALL INCLUDE ITEMS PURCHASED BY A CUSTOMER, THE PRICE FOR EACH ITEM, A TAXABILITY DETERMINATION FOR EACH ITEM, A SEGREGATED TAX AMOUNT FOR EACH OF THE TAXED ITEMS, THE AMOUNT OF CASH OR CREDIT TENDERED, THE NET AMOUNT RETURNED TO THE CUSTOMER IN CHANGE, THE DATE AND TIME OF THE PURCHASE, THE NAME, ADDRESS AND IDENTIFICATION NUMBER OF THE VENDOR, AND THE RECEIPT OR INVOICE NUMBER OF THE TRANS- ACTION. (H) "TRANSACTION REPORTS" SHALL MEAN A REPORT DOCUMENTING, BUT NOT LIMITED TO, THE SALES, TAXES COLLECTED, MEDIA TOTALS AND DISCOUNT VOIDS AT AN ELECTRONIC CASH REGISTER THAT IS PRINTED ON A CASH REGISTER TAPE AT THE END OF A DAY OR SHIFT, OR A REPORT DOCUMENTING EVERY ACTION AT AN ELECTRONIC CASH REGISTER THAT IS STORED ELECTRONICALLY. 2. PROHIBITIONS AND PRESUMPTIONS. (A) FUNCTIONS ALTERING DATA PROHIB- ITED. NO FUNCTION OF ANY ELECTRONIC CASH REGISTER OR ELECTRONIC COMPO- NENT THAT IS OR MAY BE INSTALLED IN THE ELECTRONIC CASH REGISTER TO MODIFY, CORRECT, DELETE, CANCEL OR OTHERWISE ALTER DATA WITHOUT PRESERV- ING THE ORIGINAL DATA AND ITS SUBSEQUENT MODIFICATIONS, CORRECTIONS, DELETIONS, CANCELLATIONS OR ALTERATIONS MAY BE USED. (B) PRESUMPTION. ANY PERSON WHO KEEPS A REGISTER OR SUPPORTING DOCU- MENTS IN ACCORDANCE WITH PARAGRAPH (A) OF THIS SUBDIVISION BY MEANS OF SUCH AN ELECTRONIC DEVICE OR COMPUTER SYSTEM IS PRESUMED TO HAVE USED SUCH A FUNCTION IF A COMPUTER PROGRAM OR AN ELECTRONIC COMPONENT HAVING A FUNCTION DESCRIBED IN PARAGRAPH (A) OF THIS SUBDIVISION IS FOUND IN ANY PREMISES OR PLACE IN WHICH THE PERSON CARRIES ON A BUSINESS OR KEEPS PROPERTY OR IN WHICH THE PERSON DOES ANYTHING RELATING TO ANY BUSINESS OR KEEPS OR SHOULD KEEP REGISTERS PURSUANT TO A FISCAL LAW. HOWEVER, SUCH PRESUMPTION DOES NOT APPLY WHERE THE FUNCTION IS A STANDARD COMPO- NENT OF SOFTWARE OR A SOFTWARE SUBSYSTEM OF A COMPUTER SYSTEM THAT IS INHERENT IN THE OPERATION OF A COMPUTER. (C) REBUTTAL. THE FOREGOING PRESUMPTION DESCRIBED IN PARAGRAPH (B) OF THIS SUBDIVISION MAY BE REBUTTED BY PROVING TO THE NEW YORK STATE TAX APPEALS TRIBUNAL THAT THE COMPUTER PROGRAM OR ELECTRONIC COMPONENT CONTAINED THE FUNCTION DESCRIBED IN PARAGRAPH (A) OF THIS SUBDIVISION WITHOUT THE KNOWLEDGE OR CONSENT OF THE PERSON KEEPING THE REGISTER OR THE SUPPORTING DOCUMENTS. (D) PROHIBITIONS. NO PERSON MAY DESIGN, MANUFACTURE OR INSTALL, SELL, LEASE OR OTHERWISE MAKE AVAILABLE TO ANOTHER PERSON, UPDATE, MAINTAIN, UPGRADE, ALTER OR SERVICE A COMPUTER PROGRAM FUNCTION OR ELECTRONIC COMPONENT THE USE OF WHICH IS PROHIBITED BY PARAGRAPH (A) OF THIS SUBDI- VISION, OR IN ANY WAY OFFER TO INSTALL, SELL, LEASE OR OTHERWISE MAKE AVAILABLE TO ANOTHER PERSON, UPDATE, MAINTAIN, UPGRADE, ALTER OR SERVICE SUCH A COMPUTER PROGRAM FUNCTION OR ELECTRONIC COMPONENT. 3. PENALTIES. (A) EVERY PERSON WHO VIOLATES PARAGRAPH (A) OF SUBDIVI- SION TWO OF THIS SECTION IS GUILTY OF AN OFFENSE AND IS LIABLE TO A FINE OF NO LESS THAN TWO THOUSAND DOLLARS BUT NO MORE THAN TWENTY-FIVE THOU- SAND DOLLARS AND, FOR A SECOND OFFENSE WITHIN FIVE YEARS, TO A FINE OF NO LESS THAN TWENTY-FIVE THOUSAND DOLLARS BUT NO MORE THAN ONE HUNDRED THOUSAND DOLLARS AND, FOR A THIRD OR SUBSEQUENT OFFENSE WITHIN TEN YEARS, TO A FINE OF NO LESS THAN ONE HUNDRED THOUSAND DOLLARS BUT NO MORE THAN FIVE HUNDRED THOUSAND DOLLARS.
(B) IN ADDITION TO THE FINE OF TWENTY-FIVE THOUSAND DOLLARS AND NO MORE THAN ONE HUNDRED THOUSAND DOLLARS PRESCRIBED IN PARAGRAPH (A) OF THIS SUBDIVISION FOR A SECOND OFFENSE, IN CASES WHEN THE PERSON WHO VIOLATES PARAGRAPH (A) OF SUBDIVISION TWO OF THIS SECTION IS GUILTY OF AN OFFENSE ALSO HOLDS THE LICENSE FOR THE BUSINESS AT WHICH THE OFFENSE OCCURRED, THE DEPARTMENT OF STATE SHALL SUSPEND FOR FIVE YEARS THE CERTIFICATE OF INCORPORATION HELD BY THE AFOREMENTIONED OFFENDER, WHO SHALL ALSO BE PROHIBITED FROM APPLYING FOR ANY OTHER CERTIFICATE OF INCORPORATION FOR FIVE YEARS. (C) A PERSON IS GUILTY OF AN OFFENSE AND IS LIABLE TO A FINE OF NO LESS THAN TWENTY-FIVE THOUSAND DOLLARS AND NO MORE THAN FIVE HUNDRED THOUSAND DOLLARS AND, FOR A SUBSEQUENT OFFENSE WITHIN FIVE YEARS, TO A FINE OF NO LESS THAN ONE HUNDRED THOUSAND DOLLARS AND NO MORE THAN ONE MILLION DOLLARS, IF THE PERSON: (I) CONTRAVENES THE PROVISIONS OF PARAGRAPH (D) OF SUBDIVISION TWO OF THIS SECTION; OR (II) CONSPIRES WITH ANOTHER PERSON TO COMMIT AN OFFENSE UNDER SUBPARA- GRAPH (I) OF THIS PARAGRAPH. (D) IN ADDITION TO THE FINE OF ONE HUNDRED THOUSAND DOLLARS TO ONE MILLION DOLLARS PRESCRIBED IN PARAGRAPH (C) OF THIS SUBDIVISION FOR A SUBSEQUENT OFFENSE, THE OFFENDER MAY BE IMPRISONED FOR NO MORE THAN TWO YEARS. S 3. The tax law is amended by adding a new section 1113 to read as follows: S 1113. AUTOMATED SALES TAX SUPPRESSION TAX AMNESTY. 1. NOTWITHSTAND- ING THE PROVISIONS OF ANY OTHER LAW TO THE CONTRARY, THERE IS HEREBY ESTABLISHED AN AMNESTY PROGRAM TO BE ADMINISTERED BY THE COMMISSIONER, TO BE EFFECTIVE FOR THE PERIOD AS PRESCRIBED BY SUCH COMMISSIONER, FOR ALL ELIGIBLE TAXPAYERS AS DESCRIBED IN SUBDIVISION THREE OF THIS SECTION, OWING ANY TAX OR SURCHARGE IMPOSED BY THIS ARTICLE OR BY ARTI- CLES NINE, NINE-A, THIRTEEN-A, EIGHTEEN, TWENTY, TWENTY-TWO AND TWENTY- EIGHT-A OF THIS CHAPTER AND ACCRUED AS A RESULT OF ANY VIOLATION OF PARAGRAPH (A) OF SUBDIVISION ONE OF SECTION THREE HUNDRED NINETY-SIX-TTT OF THE GENERAL BUSINESS LAW. 2. SUCH AMNESTY PROGRAM SHALL APPLY TO TAX LIABILITIES FOR THE TAXES SET FORTH IN SUBDIVISION ONE OF THIS SECTION ("DESIGNATED TAXES") FOR TAXABLE PERIODS ENDING OR TRANSACTIONS OR USES OCCURRING ON OR BEFORE FEBRUARY TWENTY-EIGHTH, TWO THOUSAND THIRTEEN. 3. FOR PURPOSES OF THE AMNESTY PROGRAM ESTABLISHED UNDER THIS SECTION, AND SUBJECT TO THE PROVISIONS OF SUBDIVISION TWELVE OF THIS SECTION, AN ELIGIBLE TAXPAYER IS AN INDIVIDUAL, PARTNERSHIP, ESTATE, TRUST, CORPO- RATION, LIMITED LIABILITY COMPANY, JOINT STOCK COMPANY, OR ANY OTHER COMPANY, TRUSTEE, RECEIVER, ASSIGNEE, REFEREE, SOCIETY, ASSOCIATION, BUSINESS OR ANY OTHER PERSON AS DESCRIBED IN THIS CHAPTER, WHO OR WHICH HAS A TAX LIABILITY WITH REGARD TO THE LIABILITY DESCRIBED IN SUBDIVI- SION ONE OF THIS SECTION FOR THE PERIOD OF TIME DESCRIBED IN SUBDIVISION TWO OF THIS SECTION. 4. THE AMNESTY PROGRAM ESTABLISHED BY THIS SECTION SHALL PROVIDE, THAT UPON APPLICATION FOR A WAIVER OF TAX, INCLUDING APPLICABLE RETURNS, WHICH APPLICATION AND RETURNS SHALL BE IN SUCH FORM AND SUBMITTED IN SUCH MANNER AS PRESCRIBED BY THE COMMISSIONER, BY AN ELIGIBLE TAXPAYER, AND UPON PAYMENT IN SUCH FORM AND IN SUCH MANNER AS PRESCRIBED BY SUCH COMMISSIONER, WHICH PAYMENT SHALL EITHER ACCOMPANY SUCH APPLICATION OR BE MADE WITHIN THE TIME STATED ON A BILL ISSUED BY SUCH COMMISSIONER TO SUCH TAXPAYER, OF THE AMOUNT OF A TAX LIABILITY UNDER ONE OR MORE OF THE DESIGNATED TAXES WITH RESPECT TO WHICH AMNESTY IS SOUGHT, PLUS RELATED
INTEREST, SUCH COMMISSIONER SHALL WAIVE ANY APPLICABLE PENALTIES, INCLUDING THE ADDITIONAL RATE OF INTEREST PRESCRIBED UNDER SECTION ELEV- EN HUNDRED FORTY-FIVE OF THIS ARTICLE ("INTEREST PENALTY"), AND SHALL REDUCE BY TWO PERCENT THE APPLICABLE RATE OF INTEREST ASSOCIATED WITH SUCH LIABILITY, FOR THE FOLLOWING: (A) FAILURE TO PAY ANY SUCH TAX LIABILITY; (B) FAILURE TO FILE A RETURN OR REPORT WITH RESPECT TO ANY SUCH TAX LIABILITY. 5. NO CIVIL, ADMINISTRATIVE OR CRIMINAL ACTION OR PROCEEDING CONCERN- ING TAX LIABILITY WHICH IS THE SUBJECT OF A WAIVER APPROVED BY THE COMMISSIONER SHALL BE BROUGHT AGAINST A TAXPAYER ELIGIBLE FOR AMNESTY UNDER THE PROVISIONS OF THIS SECTION PROVIDED THE TAXPAYER REMAINS IN COMPLIANCE WITH THE PROVISIONS OF THIS SECTION. FAILURE TO PAY ALL SUCH TAXES, PLUS RELATED INTEREST BY THE LATER OF MARCH FIFTEENTH, TWO THOU- SAND FOURTEEN, OR THE DATE PRESCRIBED FOR PAYMENT ON A BILL ISSUED BY SUCH COMMISSIONER, SHALL INVALIDATE ANY AMNESTY GRANTED PURSUANT TO THE AMNESTY PROGRAM ESTABLISHED UNDER THIS SECTION. 6. AMNESTY SHALL NOT BE GRANTED TO A TAXPAYER WHO IS A PARTY TO ANY CRIMINAL INVESTIGATION BEING CONDUCTED BY AN AGENCY OF THE STATE OR ANY POLITICAL SUBDIVISION THEREOF, IS A PARTY TO ANY ADMINISTRATIVE PROCEED- ING OR CIVIL OR CRIMINAL LITIGATION WHICH IS PENDING ON THE DATE OF THE TAXPAYER'S APPLICATION IN THE BUREAU OF CONCILIATION AND MEDIATION SERVICES, THE DIVISION OF TAX APPEALS OR ANY COURT OF THIS STATE OR THE UNITED STATES, RELATING TO ANY ACTION OR FAILURE TO ACT WHICH IS THE BASIS FOR THE PENALTY OR INTEREST WITH RESPECT TO WHICH AMNESTY IS SOUGHT. AMNESTY SHALL ALSO NOT BE GRANTED TO ANY TAXPAYER WHO HAS BEEN CONVICTED OF A CRIME RELATING TO A TAX THAT IS THE BASIS OF THE PENALTY OR INTEREST WITH RESPECT TO WHICH AMNESTY IS SOUGHT FOR ANY PERIOD OR ASSESSMENT FOR THAT TAX. AN ADMINISTRATIVE PROCEEDING OR CIVIL LITI- GATION SHALL BE DEEMED NOT TO BE PENDING ON THE DATE OF THE APPLICATION IF THE TAXPAYER WITHDRAWS FROM SUCH PROCEEDING OR LITIGATION PRIOR TO THE GRANTING OF AMNESTY. 7. AMNESTY TAX RETURN FORMS SHALL BE IN A FORM, CONTAIN SUCH INFORMA- TION AND BE SUBMITTED AS PRESCRIBED BY THE COMMISSIONER AND SHALL PROVIDE FOR SPECIFICATIONS BY THE APPLICANT OF THE TAX LIABILITY WITH RESPECT TO WHICH AMNESTY IS SOUGHT. THE APPLICANT MUST ALSO PROVIDE SUCH ADDITIONAL INFORMATION AS IS REQUIRED BY THE COMMISSIONER. AMNESTY SHALL BE GRANTED ONLY WITH RESPECT TO THE TAX LIABILITIES SPECIFIED BY THE TAXPAYER ON SUCH FORMS. ANY RETURN OR REPORT FILED UNDER THE AMNESTY PROGRAM ESTABLISHED HEREIN IS SUBJECT TO VERIFICATION AND ASSESSMENT AS PROVIDED BY STATUTE. IF THE APPLICANT FILES A FALSE OR FRAUDULENT TAX RETURN OR REPORT, OR ATTEMPTS IN ANY MANNER TO DEFEAT OR EVADE A TAX UNDER THE AMNESTY PROGRAM, AMNESTY SHALL BE DENIED OR RESCINDED. 8. NO REFUND SHALL BE GRANTED OR CREDIT ALLOWED WITH RESPECT TO ANY PENALTY OR INTEREST PAID PRIOR TO THE TIME THE TAXPAYER APPLIES FOR AMNESTY PURSUANT TO SUBDIVISION FOUR OF THIS SECTION. 9. UNLESS THE COMMISSIONER ON HIS OR HER OWN INITIATIVE RE-CALCULATES THE AMOUNT OF TAX DUE, INCLUDING APPLICABLE INTEREST, NO REFUND SHALL BE GRANTED OR CREDIT ALLOWED WITH RESPECT TO ANY TAXES, INCLUDING APPLICA- BLE INTEREST, PAID UNDER THIS PROGRAM. 10. WITH RESPECT TO ANY EXISTING INSTALLMENT PAYMENT AGREEMENT OF AN ELIGIBLE TAXPAYER, WHERE SUCH AGREEMENT APPLIES TO A TAX LIABILITY WITH RESPECT TO WHICH AMNESTY IS SOUGHT BY SUCH TAXPAYER, NOTWITHSTANDING ANY TERMS OF SUCH AGREEMENT TO THE CONTRARY, SUCH TAXPAYER, AS A CONDITION OF RECEIVING AMNESTY, MUST PAY ANY SUCH LIABILITY IN FULL BY THE LATER
OF THE LAST DAY OF THE PRESCRIBED AMNESTY PERIOD, OR THE DATE PRESCRIBED THEREFOR ON A BILL ISSUED BY THE COMMISSIONER. 11. THE COMMISSIONER SHALL PROMULGATE REGULATIONS, ISSUE FORMS AND INSTRUCTIONS AND TAKE ANY AND ALL OTHER ACTIONS NECESSARY TO IMPLEMENT THE PROVISIONS OF THE AMNESTY PROGRAM ESTABLISHED UNDER THIS SECTION. THE COMMISSIONER SHALL PUBLICIZE THE AMNESTY PROGRAM PROVIDED FOR HEREIN SO AS TO MAXIMIZE PUBLIC AWARENESS OF AND PARTICIPATION IN SUCH PROGRAM. 12. (A) FOR PURPOSES OF THIS SUBDIVISION, THE TERM "TAXPAYER" SHALL INCLUDE ANY PERSON SUBJECT TO ANY TAX REFERENCED IN SUBDIVISION ONE OF THIS SECTION OR ANY PERSON REQUIRED TO COLLECT ANY SUCH TAX. (B) THE AMNESTY PROGRAM PROVIDED FOR IN THIS SECTION SHALL NOT APPLY TO A TAXPAYER WHICH HAS MORE THAN FIVE HUNDRED EMPLOYEES OR WHOSE COMBINED FILING GROUP HAS MORE THAN FIVE HUNDRED EMPLOYEES IN THE UNITED STATES ON THE DATE OF THE TAXPAYER'S APPLICATION. THE TERM "PENALTY" SHALL NOT INCLUDE THE PENALTY IMPOSED UNDER SUBSECTION (G) OF SECTION SIX HUNDRED EIGHTY-FIVE OF THIS CHAPTER, THE PENALTY IMPOSED UNDER SUBDIVISION TWO OF SECTION TWO HUNDRED EIGHTY-NINE-B OF THIS CHAPTER OR THE PENALTY IMPOSED UNDER SUBDIVISION (A) OF SECTION THREE HUNDRED FIFTEEN OF THIS CHAPTER BY REASON OF ITS INCORPORATION BY REFERENCE OF SUCH PENALTY IMPOSED UNDER SUBDIVISION TWO OF SECTION TWO HUNDRED EIGHT- Y-NINE-B OF THIS CHAPTER. 13. FOR PURPOSES OF ACCOUNTING FOR THE MONEYS AND REVENUES RECEIVED UNDER THE AMNESTY PROGRAM ESTABLISHED PURSUANT TO THIS SECTION, THE COMMISSIONER SHALL REPORT THE GROSS REVENUE COLLECTED UNDER THE TAX PURSUANT TO THE TAX AMNESTY PROGRAM. SUCH REPORT SHALL BE MADE ON A MONTHLY BASIS, COMMENCING THE FIRST MONTH AFTER THE AMNESTY PROGRAM IS ESTABLISHED AND ENDING WITH THE LAST MONTH ENDING IMMEDIATELY PRIOR TO THE ISSUANCE OF THE FINAL REPORT REQUIRED PURSUANT TO THIS ACT. SUCH REPORTS SHALL INCLUDE INFORMATION CONCERNING THE GROSS REVENUE COLLECTED UNDER EACH TAX. 14. ON OR BEFORE FEBRUARY TWENTY-EIGHTH, TWO THOUSAND FOURTEEN, THE COMMISSIONER SHALL SUBMIT A REPORT TO THE CHAIRMAN OF THE ASSEMBLY WAYS AND MEANS COMMITTEE, THE RANKING MINORITY MEMBER OF THE ASSEMBLY WAYS AND MEANS COMMITTEE, THE CHAIRMAN OF THE SENATE FINANCE COMMITTEE, THE RANKING MINORITY MEMBER OF THE SENATE FINANCE COMMITTEE AND THE DIRECTOR OF THE DIVISION OF THE BUDGET REGARDING THE AMNESTY PROGRAM ESTABLISHED PURSUANT TO THIS ACT. THE REPORT SHALL CONTAIN THE FOLLOWING INFORMATION AS OF THE REPORT CUTOFF DATE: (A) THE NUMBER OF CASES IN WHICH REQUESTS FOR PENALTY AND INTEREST PENALTY WAIVERS WERE MADE; (B) THE NUMBER OF CASES BY TAX AREA IN WHICH REQUESTS FOR PENALTY AND INTEREST PENALTY WAIVERS WERE APPROVED; (C) THE AMOUNT OF TAX AND INTEREST DUE IN ALL APPROVED AND UNAPPROVED CASES BY TAX AREA AND THE AMOUNT OF PENALTY FOR UNAPPROVED CASES BY TAX AREA, BUT NOT INCLUDING INTEREST ON PENALTY; (D) THE AMOUNT OF PENALTY AND INTEREST PENALTY WAIVED IN ALL APPROVED CASES BY TAX AREA BUT NOT INCLUDING INTEREST ON PENALTY; (E) THE GROSS REVENUE COLLECTED UNDER EACH TAX AND THE YEAR OR OTHER APPLICABLE PERIOD FOR OR DURING WHICH THE LIABILITY WAS INCURRED; (F) THE AMOUNT OF MONEY SPENT ON ADVERTISING, NOTIFICATION, AND OUTREACH ACTIVITIES, BY EACH ACTIVITY, AND A DESCRIPTION OF THE FORM AND CONTENT OF SUCH ACTIVITIES, BY EACH ACTIVITY; (G) THE AMOUNT PAID BY THE DEPARTMENT FOR SERVICES AND EXPENSES RELATED TO THE ESTABLISHMENT OF THE AMNESTY PROGRAM;
(H) AN ESTIMATE OF THE AMOUNT OF REVENUE FORGONE AS A RESULT OF DIVERTING STAFF OF THE DEPARTMENT FROM REGULAR WORK RESPONSIBILITIES TO WORK ON THE AMNESTY PROGRAM; (I) AN ESTIMATE OF THE AMOUNT OF REVENUE RECEIVED DURING THE PERIOD OF THE AMNESTY PROGRAM PROVIDED FOR HEREIN WHICH WOULD HAVE OTHERWISE BEEN RECEIVED DURING ANOTHER PERIOD; AND (J) AN ESTIMATE OF THE NET REVENUE GENERATED FROM THE AMNESTY PROGRAM. S 4. This act shall take effect on the ninetieth day after it shall have become a law.

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