Failure to pay tax

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    • Negligence or intentional disregard of rules and regulations with respect to income taxes

      • (a) If any part of any underpayment (as defined in subsection (c)(1) of this section) of any tax imposed by the Virgin Islands income tax law is due to negligence or intentional disregard of rules and regulations (but without intent to defraud), there shall be added to the tax an amount equal to 5 percent of the underpayment.

    • Fraud

      • (b) If any part of any underpayment (as defined in subsection (c) of this section) of tax required to be shown on a return is due to fraud, there shall be added to the tax an amount equal to 50 percent of the underpayment. In the case of income taxes, this amount shall be in lieu of any amount determined under subsection (a) of this section.

    • Definition of underpayment

      • (c) For purposes of this section, the term “underpayment” means—

        • (1) Income taxes. In the case of a tax to which section 941 of this title (relating to income taxes) is applicable, a deficiency as defined in that section (except that, for this purpose, the tax shown on a return referred to in section 941(a)(1)(A) of this title shall be taken into account only if such return was filed before the last day prescribed for the filing of such return, determined with regard to any extension of time for such filing); and

        • (2) Other taxes. In the case of any tax imposed by this subtitle, the amount by which such tax exceeds the excess of—

          • (A) the sum of—

            • (i) the amount shown as the tax by the taxpayer upon his return (determined without regard to any credit for an overpayment of any prior period) if a return was made by the taxpayer within the time prescribed for filing such return (determined with regard to any extension of time for such filing) and an amount was shown as the tax by the taxpayer thereon, plus,

            • (ii) any amount, not shown on the return, paid in respect of such tax, over—

          • (B) the amount of rebates made.

          For purposes of subparagraph (B), the term “rebate” means so much of an abatement, credit, refund, or other repayment, as was made on the ground that the tax imposed was less than the excess of the amount specified in subparagraph (A) over the rebates previously made.
    • No delinquency penalty if fraud assessed

      • (d) If any penalty is assessed under subsection (b) of this section (relating to fraud) for an underpayment of tax which is required to be shown on a return, no penalty under section 1281 of this title (relating to failure to file such a return) shall be assessed with respect to the same underpayment.

    • Failure to pay stamp tax

      • (e) Any person (as defined in section 1931(11) of this title) who willfully fails to pay any tax imposed by this subtitle which is payable by stamps, coupons, tickets, books, or other devices or methods prescribed by this subtitle or by regulations under authority of this subtitle, or willfully attempts in any manner to evade or defeat any such tax or the payment thereof, shall, in addition to other penalties provided by law, be liable to a penalty of 50 percent of the total amount of the underpayment of the tax.


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