Section 235-108 - Audit of return; procedure; additional taxes(a) Audit. The director of taxation or a responsible person designated by the director to act in the premises for the purpose of verification or audit of a return made by the taxpayer or employer, or for the purpose of making a return where none has been made, is authorized and empowered to examine all account books, bank books, bank statements, records, vouchers, copies of federal tax returns, and any and all other documents and evidences having any relevancy to the determination of the income or wages as required to be returned under this chapter, and the director may employ the director's powers under section 231-7 for such purposes.(b) Additional taxes. If the department of taxation discovers from the examination of the return or otherwise that income, or the liability of an employer in respect of wages, or any portion thereof, has not been assessed, it may assess the same and give notice to the taxpayer or employer of the assessment, and the taxpayer or employer shall thereupon have an opportunity within thirty days to confer with the department as to the proposed assessment. After the expiration of thirty days from such notification the department shall assess the income of the taxpayer, or the liability of the employer in respect of wages, or any portion thereof which it believes has not heretofore been assessed, and shall give notice to the taxpayer or employer of the amount of the tax and interest and penalties if any, and the amount thereof shall be paid within twenty days after the date the notice was mailed, properly addressed to the taxpayer or employer at the taxpayer's or employer's last known address or place of business.L Sp 1957, c 1, pt of §2; am L Sp 1959 2d, c 1, §16; Supp, § 121-42; HRS § 235-108; gen ch 1985 Assessor not bound to take return as true. 16 H. 796. Method of computing depreciation not reflective of income.18 Haw. 530. Reassessment proper when income in previous year unreported. 28 H. 261.