HRS §231-99
Illegal to hold cash to avoid taxes
This law makes it illegal for a business in Hawaii to keep cash (coins or bills) mainly to avoid paying taxes. The tax department must prove the cash is held for that purpose, and can use indirect evidence. Violators face a fine, with a higher fine for cash-based businesses.
businesses
The statute, as written — Possession of currency for tax avoidance purposes
It shall be unlawful for any person engaged in business in this State to possess currency in the form of coin or note, where the possession is for tax avoidance purposes. It shall be the department's burden to establish that currency is possessed for tax avoidance purposes; provided that circumstantial evidence may be used by the department in any proceeding. Any person who violates this section shall be subject to a fine not to exceed $2,000; provided that if the person is a cash-based business, the fine shall not exceed $3,000.
LawTrove is not legal advice. The summary above is a computer-generated restatement — the authoritative text is the official version linked above.