§ 9-1-28. Omitted taxes.

(a)

If the director ascertains that a person has not been assessed with a license tax levied under the provisions of this chapter for any license year of the three license years last past, or for the then current license year, and the absence of such assessment was not due to the fraudulent intent to evade taxes on the part of such person, it shall be the duty of the director to assess the person with the proper license tax for the year or years omitted, adding thereto the penalty and interest set out in section 9-1-12 of this code.

(b)

The penalties and interest set forth in subsection (a) shall not be imposed, or if imposed, shall be abated by, the director if the failure to pay license taxes when due was not the fault of the licensee. In order to demonstrate lack of fault, the licensee must show that he acted responsibly and that his failure to pay was due to events beyond his control. The term "acted responsibly" means that (i) the licensee exercised the same care that a reasonable and prudent person engaged in business would have exercised in determining the filing obligations for the business, and (ii) the licensee undertook significant steps to avoid or to mitigate his failure, such as promptly rectifying the failure once discovered.

(c)

If the assessment of the omitted tax is not paid to the director within 15 days after written notice to the licensee, a penalty of 10 percent of the additional tax or $10, whichever is greater, plus interest at 10 percent per annum, shall accrue from the date of the notice until payment, and the director shall collect the penalty and interest along with the tax and in the same manner as the tax may be collected. (Code 1963, Sec. 20-22; Ord. No. 3834, 11/18/95, Sec. 2)