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Hawaii News

State’s scofflaw search nets $100 million in back taxes

Delinquent taxpayers and companies have paid more than $100 million in back taxes since Hawaii tax officials began a new program in 2008 to track them down, state tax director Stanley Shiraki announced yesterday.

Shiraki declined to identify the individuals or companies but said some of them have not paid state taxes since 2002, and criminal prosecutions are possible.

"There were a lot of people, a lot of companies," Shiraki said.

State tax officials have been working with CGI Technologies and Solutions Inc. to pore over business and tax filings to find tax scofflaws. Under its contract with the state, CGI was entitled to one-third of all collected taxes up to $25 million, Shiraki said.

The estimated $1 million for staffing, equipment upgrades and computer programming all came out of CGI’s $25 million, Shiraki said.

The rest of the back taxes — more than $75 million — goes directly to the state.

"This cost no money," Shiraki said. "There was no risk."

Even though CGI has received its maximum allowable payment, the program will continue until June 30.

By the time CGI’s contract ends, Shiraki estimates, another $20 million in back taxes will be collected.

The program also has helped Hawaii tax officials better identify potential subjects of audits, upgrade software, improve data storage, redesign automatic calculations of tax penalties and interest, and upgrade and replace aging equipment, Shiraki said.

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