Connecticut Bill Criminalizes Tax Zappers
- Sales Tax News
- May 25, 2012 | Susan McLain
Connecticut House Bill 5421 (HB 5421) is “AN ACT CONCERNING ‘ZAPPERS’. To make it a felony to sell, purchase, install, transfer or possess an automated sales suppression device (‘zapper’) or phantom-ware that eliminates point-of-sale transactions randomly, and creates a shadow record of the sale, making it difficult to detect understated records of sales and sales tax liability.”
Violators will be subject to “…a fine of up to $ 100,000, one to five years in prison, or both.” In addition, they will be “…liable for all taxes, penalties, and interest due as a result of the crime and…forfeit all profits associated with the sale or use of the zapper or phantom-ware.”
The bill has been passed by the Senate and the House. Once fully approved, the law goes into effect July 1, 2012.
Connecticut joins these other states who have considered or implemented tax zapper laws: