1. (a) General. Tax Code, Chapter 151, prohibits certain activities and provides criminal penalties for violations.

2. (b) Criminal offenses provided in Tax Code, Chapter 151, include, but are not limited to the following:

   1. (1) A seller commits an offense if the seller directly or indirectly advertises or holds out to the public that the seller will assume, absorb, or refund any portion of the tax, or that the seller will not add the tax to the sales price of taxable items. This offense is a misdemeanor punishable by a fine of not more than $500 for each occurrence.

   2. (2) A person commits an offense if the person intentionally or knowingly makes a false entry in, or a fraudulent alteration of, an exemption or resale certificate, or if the person makes, presents, or uses an exemption or resale certificate with knowledge that it is false and with intent that the certificate be accepted as valid. An offense is:

      1. (A) a Class C misdemeanor if the tax evaded by the invalid certificate is less than $20;
      2. (B) a Class B misdemeanor if the tax evaded by the invalid certificate is $20 or more but less than $200;
      3. (C) a Class A misdemeanor if the tax evaded by the invalid certificate is $200 or more but less than $750;
      4. (D) a felony of the third degree if the tax evaded by the invalid certificate is $750 or more but less than $20,000; and
      5. (E) a felony of the second degree if the tax evaded by the invalid certificate is $20,000 or more.

   3. (3) A person or officer of a corporation commits an offense if the person or the corporation engages in business as a seller in this state without a permit or with a suspended permit. A separate offense is committed each day a person operates a business without a permit or with a suspended permit. An offense is:

      1. (A) a Class C misdemeanor for a first offense;
      2. (B) a Class B misdemeanor punishable by a fine not to exceed $2,000 for a second conviction;
      3. (C) a Class A misdemeanor punishable by a fine not to exceed $4,000 for a third conviction; and
      4. (D) a Class A misdemeanor punishable by a fine not to exceed $4,000, confinement in jail for a term not to exceed a year, or both the fine and confinement for a fourth or subsequent conviction.

   4. (4) A person commits an offense if the person intentionally or knowingly fails to pay to the comptroller the tax collected by that person. An offense is:

      1. (A) a Class C misdemeanor if the amount of the tax collected and not paid is less than $10,000;
      2. (B) a state jail felony if the amount of the tax collected and not paid is $10,000 or more but less than $20,000;
      3. (C) a felony of the third degree if the amount of the tax collected and not paid is $20,000 or more but less than $100,000; and
      4. (D) a felony of the second degree if the amount of the tax collected and not paid is $100,000 or more.

   5. (5) A person commits an offense if the person refuses to furnish a report as required by Tax Code, Chapter 151, or by the comptroller. An offense is:

      1. (A) a Class C misdemeanor for a first offense;
      2. (B) a Class B misdemeanor punishable by a fine not to exceed $2,000 for a second conviction; and
      3. (C) a Class A misdemeanor punishable by a fine not to exceed $4,000 for a third or subsequent conviction.
   6. (6) A person commits an offense if the person intentionally or knowingly conceals, destroys, makes a false entry in, or fails to make an entry in records that are required to be made or kept under Tax Code, Chapter 151. An offense is a felony of the third degree.
   7. (7) A person commits an offense if the person fails to produce or allow inspection of a record that is required to be kept under Tax Code, Chapter 151, within an allowed period of time after a person who is authorized by the comptroller requests the record. An offense is a Class C misdemeanor. A separate offense is committed each day the person fails to allow inspection of records or fails to produce records after the allowed time period expired. See subsection (c) of this section for certain restrictions.
3. (c) Inspection and Demand for Production. Tax Code, §151.023 permits the comptroller to inspect business premises where a taxable event has occurred and to issue a written demand notice to a taxpayer or to an employee, an authorized representative, or agent of the taxpayer for the production of documents within 10 business days of delivery of the notice. This authority will be exercised within the parameters outlined in subsection (f) of §3.281 of this title (relating to Records Required; Information Required). The Comptroller may file criminal charges with appropriate authorities for violations of Tax Code, §151.023, if the taxpayer fails to permit inspection or fails to produce documents in response to a demand by the comptroller's Enforcement Division or Criminal Investigation Division.
4. (d) Venue. Travis County or the county in which any element of the offense occurs is the venue for prosecution for any offense incurred under Tax Code, Chapter 151.

Source Note:The provisions of this §3.305 adopted to be effective February 18, 2002, 27 TexReg 1177.