2011 Kentucky Revised Statutes Subchapter 20 Financing of Development Generally 154.20.262 Penalties and interest -- Liability of investors -- Powers and duties of Department of Revenue.
KY Rev Stat § 154.20.262 (1996 through Reg Sess) What's This?
154.20-262 Penalties and interest -- Liability of investors -- Powers and duties of
Department of Revenue.
(1)
(2)
An investment fund that violates the provisions of KRS 154.20-250 to 154.20-284
shall pay to the State Treasurer a penalty in an amount equal to the amount of all
credits claimed by the investors when these credits are determined to be derived
from unqualified investments, plus interest at the rate of two percent (2%) per
month, compounded monthly, from the date the credits were taken. If the
investment fund fails to pay the penalty and interest in full as required by the
Department of Revenue, each investor shall be personally liable to the Department
of Revenue for that investor's share of the unpaid penalty, which shall be
determined by the amount of credits received and utilized by the investor and all
applicable interest. Any payment of unpaid penalty by an investor shall be included
with the investor's state tax return for the period in which the failure or violation
occurred. The commissioner of the Department of Revenue shall give notice in
writing to the authority, the investment fund manager, and the investors of any
penalties imposed. The commissioner of the Department of Revenue may abate any
imposed penalty upon written request, if the investment fund manager establishes
reasonable cause for the failure to make qualified investments in small businesses
under the provisions of KRS 154.20-250 to 154.20-284, or to otherwise comply
with the provisions of KRS 154.20-250 to 154.20-284. The State Treasurer shall
deposit any amounts received pursuant to this section in the Commonwealth's
general fund.
The administration of this section shall be the responsibility of the Department of
Revenue.
Effective: June 20, 2005
History: Amended 2005 Ky. Acts ch. 85, sec. 573, effective June 20, 2005. -- Created
2002 Ky. Acts ch. 230, sec. 22, effective July 15, 2002.
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