§ 18-165. Estimation, assessment of tax by collector when dealer fails to report and pay; presumption of correctness; specific penalty.

(a)

In the event any dealer fails to make a report and pay the tax as provided by this article, or in case the dealer makes a grossly incorrect report, or a report that is false or fraudulent, it shall be the duty of the tax collector to make an estimate for the taxable period of the retail sales, or sales of services, of such dealer, or of the gross proceeds from rental or leases of tangible personal property by the dealer and an estimate of the cost price of all articles of tangible personal property imported by the dealer for use or consumption or distribution or storage to be used or consumed in this town, and assess and collect the tax and interest, plus penalty, if such have accrued, on the basis of such assessment, which shall be considered prima facie correct, and the burden to show the contrary shall rest upon the dealer. In the event such estimate and assessment requires an examination of books, records, or documents, or an audit thereof, then the tax collector shall add to the assessment the cost of such examination, together with any penalties accruing thereon. Such costs and penalties when collected shall be placed in the account of the taxing authority in the same manner as are the taxes collected under this article.

(b)

If any dealer fails to make any return required by this article or makes an incorrect return, and the circumstances indicate willful negligence or intentional disregard of rules and regulations, but no intent to defraud, there shall be imposed, in addition to any other penalties provided herein, a specific penalty of five (5) percent of the tax or deficiency found to be due, or fifteen dollars ($15.00), whichever is the greater. This specific penalty shall be an obligation to be collected and accounted for in the same manner as if it were a part of the tax due and can be enforced either in a separate action or in the same action for the collection of the tax.

(c)

When the taxpayer files a return that is false or fraudulent or grossly incorrect and the circumstances indicate that the taxpayer had intent to defraud relative to any of the tax due under this article there shall be imposed in addition to any other penalties provided a specific penalty of fifty (50) percent of the tax found to be due and if the matter is turned over to any attorney, his fee shall be as provided in section 18-164 above.

(Ord. of 8-1-61, § 8(a), (d); Ord. No. 8-1992-1, § 9.05, 8-10-92)