CHAPTER 110

AN ACT TO AMEND CHAPTER 11, TITLE 30, DELAWARE CODE, RELATING TO STATE INCOME WITHHOLDING TAXES BY REQUIRING FOREIGN CORPORATIONS TO POST BONDS SECURING THE PAYMENT OF TAXES WITHHELD FROM DELAWARE EMPLOYEES.

Be it enacted by the General Assembly of the State of Delaware:

§ 1198. Furnishing of bond by foreign corporations; penalties; jurisdiction

(a) Any corporation not incorporated in this State, which is subject to the provisions of this subchapter, shall post with the Tax Department a surety bond, as approved by the department, in an amount equal to the estimated state income taxes to be withheld from its employees during the succeeding 12 months.

(b) Whoever violates the provisions of this Section shall be fined not more than $1,000 or imprisoned for not more than 1 year or both. The Superior Court shall have jurisdiction of offenses under this section.

Approved June 9, 1965.