Criminalizes use of certain automated sales suppression devices to falsify records.
Impact
If enacted, the bill would make it a crime of the third degree to sell, purchase, install, transfer, possess, or use these devices while knowing their intended purpose is to falsify records. Violations would result in penalties including imprisonment for three to five years, fines up to $15,000, or both. Additionally, the bill grants auditors from the Division of Taxation direct access to electronic cash registers during investigations of potential tax law violations, thereby enhancing enforcement capabilities.
Summary
Bill A2700 seeks to address the issue of tax evasion by criminalizing the use of certain automated sales suppression devices known as phantom-ware. These devices and software programs are used to falsify the electronic records maintained by electronic cash registers and point-of-sale systems. The intent of the bill is to deter the illegal manipulation of transaction data, thereby reinforcing the integrity of sales reporting and tax collection within the state.
Contention
Notable points of contention surrounding Bill A2700 may include discussions about privacy rights in businesses, the costs associated with compliance for retailers, and the broader implications for the business environment. Proponents argue that by eliminating the means for tax evasion, the bill would benefit the overall economy and contribute to fair competition among businesses. However, some critics might raise concerns about the reach of government oversight into the operational technologies used by retailers and small businesses, suggesting that such controls could hinder entrepreneurial endeavors.