AN ACT TO AMEND SECTION 1913, CHAPTER 19, TITLE 30, DELAWARE CODE, TO IMPOSE ADDITIONAL PENALTY FOR FAILURE TO FILE CORPORATION INCOME TAX RETURNS WHEN DUE.
Be it enacted by the General Assembly of the State of Delaware:
Section 1. Section 1913, Chapter 19, Title 30, Delaware Code, is hereby amended by redesignating subparagraph "(d)" therein as subparagraph "(e)", and by inserting a new subparagraph "(d)" to read as follows:
(d) In case of failure to file any returns required to be filed under the authority of this Chapter on the date prescribed therefor (determined with regard to any extension of time for filing) unless it is shown that such failure is due to reasonable cause and not due to willful neglect, there shall be added to the amount required to be shown as tax on such return 5 per cent of the amount of tax if failure is for not more than 1 month, with an additional 5 per cent for each additional month or fraction thereof during which such failure continues, not exceeding 25 per cent in the aggregate.
Penalty imposed on net amount due—For purposes of subparagraph (d) the amount of tax required to be shown on the return shall be reduced by the amount of any part of the tax which is paid on or before the date prescribed for payment of tax and by the amount of any credit against the tax which may be claimed upon the return.
For tentative returns covering estimated tax.—This section shall not apply to failure to file a tentative return covering estimated tax required by Section 1904.
Approved May 8, 1969.