Bill Text: NY A11066 | 2019-2020 | General Assembly | Introduced
Bill Title: Relates to the liability of a person who makes or uses a false record or statement material to an obligation to pay money to the state or a local government under the tax law, or who conceals or improperly avoids or decreases an obligation to pay money to the state or a local government under the tax law.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2020-10-07 - referred to ways and means [A11066 Detail]
Download: New_York-2019-A11066-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 11066 IN ASSEMBLY October 7, 2020 ___________ Introduced by COMMITTEE ON RULES -- (at request of M. of A. Weinstein) -- read once and referred to the Committee on Ways and Means AN ACT to amend the state finance law, in relation to the liability of a person who makes or uses a false record or statement material to an obligation to pay money to the state or a local government under the tax law, or who conceals or improperly avoids or decreases an obli- gation to pay money to the state or a local government under the tax law The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Section 189 of the state finance law is amended by adding a 2 new subdivision 1-a to read as follows: 3 1-a. Any person who, in accordance with the criteria set forth in 4 subdivision four of this section: 5 (a) makes, uses, or causes to be made or used, a false record or 6 statement material to their own obligation to pay money to the state or 7 a local government under the tax law, or an obligation of a subsidiary, 8 partnership, corporation or entity that they control; or 9 (b) conceals or improperly avoids or decreases their own obligation to 10 pay money to the state or a local government under the tax law, or an 11 obligation of a subsidiary, partnership, corporation or entity that they 12 control; shall be liable for damages, including consequential damages, 13 which the state or local government sustains because of the act of that 14 person. For purposes of this section, consequential damages includes 15 interest owed pursuant to the tax law. 16 § 2. Paragraph (b) of subdivision 3 of section 188 of the state 17 finance law, as amended by chapter 379 of the laws of 2010, is amended 18 to read as follows: 19 (b) require no proof of specific intent to defraud, provided, however 20 that acts occurring by mistake or as a result of mere negligence are not 21 covered by this [article] definition. 22 § 3. Paragraph (a) of subdivision 4 of section 189 of the state 23 finance law, as amended by section 8 of part A of chapter 56 of the laws 24 of 2013, is amended to read as follows: EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD17043-03-0A. 11066 2 1 (a) This section shall apply to claims, records, [or] statements or 2 obligations made under the tax law only if (i) the net income or sales 3 of the person against whom the action is brought equals or exceeds one 4 million dollars for any taxable year subject to any action brought 5 pursuant to this article; (ii) the damages pleaded in such action exceed 6 three hundred and fifty thousand dollars; and (iii) the person is 7 alleged to have violated paragraph (a), (b), (c), (d), (e), (f) or (g) 8 of subdivision one of this section; provided, however, that nothing in 9 this subparagraph shall be deemed to modify or restrict the application 10 of such paragraphs to any act alleged that relates to a violation of the 11 tax law. 12 § 4. This act shall take effect immediately and shall apply to all 13 false claims, records, statements and obligations concealed, avoided or 14 decreased on, prior to, or after such effective date.