HOUSE BILL 772
48th legislature - STATE OF NEW MEXICO - first session, 2007
INTRODUCED BY
Joseph Cervantes
AN ACT
RELATING TO TAX FRAUD; PROVIDING A CRIMINAL PENALTY FOR ENGAGING IN ACTIONS TO OBSTRUCT STATE TAX-RELATED INVESTIGATIONS BY CRIMINAL INVESTIGATORS OR INVESTIGATIONS BY PERSONS AUTHORIZED PURSUANT TO THE TAX ADMINISTRATION ACT TO INVESTIGATE VIOLATIONS OF THAT ACT.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
Section 1. A new section of the Tax Administration Act, Section 7-1-18.1 NMSA 1978, is enacted to read:
"7-1-18.1. [NEW MATERIAL] TOLLING OF TIME LIMITATIONS UPON ACTION TO QUASH A SUBPOENA OR SUMMONS.--The running of the period of limitations pursuant to Section 7-1-18 or 7-1-19 NMSA 1978 with respect to a tax liability under investigation shall be suspended for the period during which a proceeding and related appeals regarding the enforcement of a subpoena or summons is pending, if a person, the extent of the tax liability of which is being established, or that person's agent, nominee or other person acting under the direction or control of the person for which the tax liability is being established, files an action with the court to quash a subpoena or summons issued by:
A. an administrative agency with the power to issue an administrative subpoena or summons for investigative purposes; or
B. a grand jury."
Section 2. A new section of the Tax Administration Act, Section 7-1-73.1 NMSA 1978, is enacted to read:
"7-1-73.1. [NEW MATERIAL] OBSTRUCTION OF A TAX-RELATED INVESTIGATION.--
A. Obstruction of a tax-related investigation consists of:
(1) knowingly providing false information to or knowingly withholding information from a person authorized to investigate violations of the Tax Administration Act or to enforce the remedies of that act, where that information is material to the investigation or enforcement;
(2) knowingly altering, destroying, mutilating or concealing a document or record required to be retained pursuant to the Tax Administration Act or a regulation issued by the department when the alteration, destruction, mutilation or concealment is intended to mislead an investigation by a criminal investigator or a person authorized to investigate or enforce the remedies of the Tax Administration Act and concerns information material to that investigation; or
(3) knowingly preventing, obstructing, delaying or attempting to prevent, obstruct or delay the communication of information or records relating to a state tax-related investigation or providing or attempting to provide misleading information or records to a criminal investigator or person authorized to investigate or enforce the remedies of the Tax Administration Act.
B. Whoever commits obstruction of a tax-related investigation is guilty of a misdemeanor and upon conviction shall be sentenced pursuant to the provisions of Section 31-19-1 NMSA 1978."
Section 3. Section 30-1-9 NMSA 1978 (being Laws 1963, Chapter 303, Section 1-9) is amended to read:
"30-1-9. TOLLING OF TIME LIMITATION FOR PROSECUTION FOR CRIMES.--
A. If after any crime has been committed the defendant [shall conceal himself] conceals the defendant's person or identity, or [shall flee] flees from or [go] goes out of the state, the prosecution for [such] the crime may be commenced within the time prescribed in Section [1-8] 30-1-8 NMSA 1978 after the [defendant ceases to conceal himself or] defendant's person or identity is discovered or the defendant returns to the state. No period shall be included in the time of limitation when the party charged with [any] a crime is not usually and publicly a resident within the state.
B. When [(1)] an indictment, information or complaint is lost, mislaid or destroyed; [(2)] the judgment is arrested; [(3)] the indictment, information or complaint is quashed for any defect or reason; or [(4)] the prosecution is dismissed because of variance between the allegations of the indictment, information or complaint and the evidence; and a new indictment, information or complaint is [thereafter] presented, the time elapsing between the preferring of the first indictment, information or complaint and the subsequent indictment, information or complaint shall not be included in computing the period limited for the prosecution of the crime last charged; provided that the crime last charged is based upon and grows out of the same transaction upon which the original indictment, information or complaint was founded, and the subsequent indictment, information or complaint is brought within five years from the date of the alleged commission of the original crime.
C. The running of the period of limitations pursuant to Section 30-1-8 NMSA 1978 with respect to a tax liability under investigation shall be suspended for the period during which a proceeding and related appeals regarding the enforcement of a subpoena or summons is pending, if a person, the extent of the tax liability of which is being established, or that person's agent, nominee or other person acting under the direction or control of the person for which the tax liability is being established, files an action with the court to quash a subpoena or summons issued by:
(1) an administrative agency with the power to issue an administrative subpoena or summons for investigative purposes; or
(2) a grand jury."
Section 4. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2007.
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