Hawaii Relieves Non-Profit "Responsible Persons" From General Excise Tax Liability


Hawaii reversed course on "responsible person" liability for unpaid general excise tax liabilities for "responsible persons" affiliated with non-profit entities, via Act 219 of 2012.

Non-profit personnel responsible for accounting for gross proceeds, filing and paying over general excise taxes are no longer personally liable for unpaid general excise taxes. A window of liability may remain open in certain circumstances from July 1, 2010 to June 30, 2012.

"Responsible Persons" for other than non-profit entities remain potentially liable for unpaid General Excise Taxes plus penalties and interest thereon. Persons with control over gross receipts, or responsible for filing general excise tax returns and paying the general excise tax, can not rely upon the corporate shield to insulate them from an inquiry into their actions related to the non-payment and a potential personal assessment by the State of Hawaii Department of Taxation.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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