CHAPTER 292

FORMERLY

HOUSE BILL NO. 632

AN ACT TO AMEND SECTION 1195, CHAPTER 11, TITLE 30, DELAWARE CODE, RELATING TO PENALTIES FOR FAILURE TO PAY CERTAIN TAXES.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:

Section 1. Amend Subsection (a) of Section 1195, Title 30, Delaware Code, by striking the figure "25%" as it appears therein and inserting in lieu thereof the figure "10%".

Section 2. Amend Subsection (c) of Section 1195, Title 30, Delaware Code, by striking the figure "3 per cent" as it appears therein and inserting in lieu thereof the figure "1 1/2%".

Section 3. Amend Section 1195, Title 30, Delaware Code, by redesignating Subsections (d), (e), (f), (g), and (h) as Subsections (f), (g), (h), (0, and (j), respectively, and by adding thereto new Subsections (d) and (e) which shall read as follows:

"(d) If any employer fails to pay the amount shown as tax on any withholding return filed pursuant to Section 1154 of this Chapter, unless it is shown that such failure is due to reasonable cause, there shall be added to the tax required to be shown on such return 0.5% for each additional month or fraction thereof during which such failure continues, not exceeding 5% in the aggregate. Such employer shall be liable for the tax and the addition thereto, and neither shall be collected from the employee.

(e) For purposes of this Chapter, the term 'deficiency' means the amount by which the tax imposed by this Chapter exceeds -

(1) the sum of the amount shown as the tax by the taxpayer upon his return, plus the amounts previously assessed (or collected without assessment) as a deficiency, minus

(2) the amount of any abatements, credits or refunds made."

Section 4. This Act shall take effect on July 1, 1982.

Approved June 29, 1982.