with the approval of the attorney-general, may, on behalf of the state, agree upon the amount of taxes at any time due or to become due from such fiduciaries under the provisions of this act, and payment in accordance with such agreement shall be full satisfaction of the taxes to which the agreement relates.

1921, c. 34, s. 507.

ART. 10. PENALTIES.

931. Penalties. 1. Failing to file returns or pay tax without intent to evade. If any taxpayer, without intent to evade any tax imposed by this act shall fail to file a return of income or pay a tax, if one is due, at the time required by or under the provisions of this act, but shall voluntarily file a correct return of income and pay the tax due within sixty days thereafter, there shall be added to the tax an additional amount equal to five per cent thereof, but such additional amount shall in no case be less than one dollar and an additional one per cent for each month or fraction of a month during which the tax remains unpaid.

2. Voluntary failure to file or pay. If any taxpayer fails voluntarily to file a return of income or pay a tax, if one is due, within sixty days of the time required by or under the provisions of this act, the tax shall be doubled, and such doubled tax shall be increased by one per cent for each month or fraction of a month from the time the tax was originally due to the date of payment.

3. Commissioner may waive or reduce penalties. The commissioner of revenue shall have power, upon making a record of his reasons therefor, to waive or reduce any of the additional taxes or interest provided in subdivisions 1 and 2 of this section, or in subdivisions 2, 3, and 4 of section 501 (herein 924).

4. Mandamus to compel returns. If any taxpayer fails to file a return within sixty days of the time prescribed by this act, any judge of the superior court, upon petition of the commissioner of revenue, or of any ten taxable residents of the state, shall issue a writ of mandamus requiring such person to file a return. The order of notice upon the petition shall be returnable not later than ten days after the filing of the petition. The petition shall be heard and determined on the return day or on such day thereafter as the court shall fix, having regard to the speediest possible determination of the case, consistent with the rights of the parties. The judgment shall include costs in favor of the prevailing

party. All writs and processes may be issued from the clerk's office in any county and, except as aforesaid, shall be returnable as the court shall order.

5. Neglect without fraudulent intent. Any person who, with out fraudulent intent, fails to pay any tax or to make, render, sign or verify any return, or to supply any information, within the time required by or under the provisions of this act, shall be liable to a penalty of not more than one thousand dollars, to be recovered by the attorney-general, in the name of the people, by action in any court of competent jurisdiction.

6. Intentional neglect. Any person or officer or employee of any corporation, or member or employee of any partnership, who, with intent to evade any requirement of this act, or any lawful requirement of the commissioner of revenue thereunder, shall fail to pay any tax or to make, sign, or verify any return, or to supply any information required by or under the provisions of this act, or who, with like intent, shall make, render, sign or verify any false or fraudulent return or statement, or shall supply any false or fraudulent information, shall be liable to a penalty of not more than one thousand dollars, to be recovered by the attorney-general in the name of the people, by action in any court of competent jurisdiction, and shall also be guilty of a misdemeanor, and shall, upon conviction, be fined not to exceed one thousand dollars or be imprisoned not to exceed one year, or both, at the discretion of the court.

7. Compromise of penalties. The attorney-general shall have the power, with the consent of the commissioner of revenue, to compromise any penalty for which he is authorized to bring action under subdivisions 5 and 6 of this section. The penalties provided by such subdivisions shall be additional to all other penalties in this act provided.

8. Where act deemed committed. The failure to do any act required by or under the provisions of this act shall be deemed an act committed in part at the office of the commissioner of reve nue in Raleigh.

9. Evidence of evasion. The certificate of the commissioner of revenue to the effect that a tax has not been paid, that. a return has not been filed, or that information has not been supplied, as required by or under the provisions of this act, shall be prima facie evidence that such tax has not been paid, that such return has not been filed, or that such information has not been supplied.

10. Delinquent's income determined. If any taxpayer who has failed to file a return, or has filed an incorrect or insufficient

return, and has been notified by the commissioner of revenue of his delinquency, refuses or neglects within twenty days after such notice to file a proper return, or files a fraudulent return, the commissioner shall determine the income of such taxpayer, according to his best information and belief, and assess the same at not more than double the amount so determined. The commissioner may, in his discretion, allow further time for the filing of a return in such case.

1921, c. 34, s. 600.

ART. 11. REVISION AND APPEAL.

932. Revision by commissioner of revenue. A taxpayer may apply to the commissioner of revenue for revision of the tax assessed against him, at any time within one year from the time of the fling of the return or from the date of the notice of the assessment of any additional tax. The commissioner shall grant a hearing thereon, and if, upon such hearing, he shall determine that the tax is excessive or incorrect, he shall resettle the same according to the law and the facts and adjust the computation of tax accordingly. The commisioner shall notify the taxpayer of his determination and shall refund to the taxpayer the amount, if any, paid in excess of the tax found by him to be due. If the taxpayer has failed, without good cause, to file a return within the time prescribed by law, or has filed a fraudulent return, or, having filed an incorrect return, has failed, after notice to file a proper return, the commissioner shall not reduce the tax below double the amount for which the taxpayer is found to be properly assessed.

1921, c. 34, s. 700.

933. Appeal to superior court. Any taxpayer may flle formal exceptions to any finding by the commissioner of revenue with respect to his taxable income, and upon such exceptions being overruled, any such taxpayer shall have the right, upon the payment of the amount of tax found by the commissioner to be due, and upon filling bond for costs in the sum of two hundred dollars, to have the record in such cases certified to the superior court of the county in which the taxpayer resides, or has his principal place of business, within thirty days after notice by the commissioner of his determination, given as provided in section 700 (herein 932). Thereupon, appropriate proceedings shall be had and the relief, if any, to which the taxpayer may be found entitled

may be granted and any taxes, interest or penalities paid, found by the court to be in excess of those legally assessed, shall be ordered refunded to the taxpayer, with interest from time of payment.

1921, c. 34, s. 701.

ART. 12. ADMINISTRATION.

934. Commissioner of revenue to administer act. The commissioner of revenue shall administer and enforce the tax herein imposed, for which purpose he may divide the state into districts, in each of which a branch office of the department of revenue may be established. He may from time to time change the limits of such districts.

1921, c. 34, s. 800.

935. Commissioner's powers. The commissioner of revenue, for the purpose of ascertaining the correctness of any return or for the purpose of making an estimate of the taxable income of any taxpayer, shall have power to examine or cause to be examined by any agent or representative designated by him for that purpose, any books, papers, records or memoranda, bearing upon the matters required to be included in the return, and may require the attendance of the taxpayer or of any other person having knowledge in the premises, and may take testimony and require proof material for his information, with power to administer oath to such person or persons.

1921, c. 34, s. 801.

936. Officers, agents and employees; expenses. 1. Income tax director. The commissioner of revenue may appoint and remove a person to be known as the income tax director, who, under his direction shall have supervision and control of the assessment and collection of the income taxes provided in this act; the commissioner may also appoint such other officers, agents, deputies, clerks and employees as he may deem necessary, such persons to have such duties and powers as the commissioner may from time to time prescribe.

2. Expense of enforcing act. For the reasonable necessary expenses of carrying out the provisions of this act, including salaries and necessary traveling expenses of officers, deputies, agents, clerks, and employees, warrants shall be issued by the state auditor and paid by the state treasurer out of any funds not otherwise appropriated, upon approved vouchers by the commis

sioner of revenue, and the commissioner shall not later than the tenth of each month file with the state budget commission a complete statement of all vouchers approved for the previous month, and upon any item in said account being disapproved by the state budget commission, the same shall be discontinued at

once.

2. Bonds. The commissioner of revenue may require such of the officers, agents, and employees as he may designate to give bond for the faithful performance of their duties in such sum and with such sureties as he may determine, and all premiums on such bonds shall be paid in the manner provided for the payment of other expenses in the preceding section.

1921, c. 34, s. 802.

937. Oaths and acknowledgments. The commissioner of revenue and such officers as he may designate, shall have the power to administer an oath to any person or to take the acknowledgment of any person in respect of any return or report required by this act or the rules and regulations of the commissioner. 1921, c. 34, s. 803.

938. Statistics published. The commissioner of revenue shall prepare and publish annually statistics reasonably available, with respect to the operation of this act, including amounts collected, classification of taxpayers, income and exemptions, and such other facts as are deemed pertinent and valuable.

1921, c. 34, s. 804.

939. Secrecy of officials required. 1. Secrecy required. Except in accordance with proper judicial order or as otherwise provided by law, it shall be unlawful for the commissioner of revenue, any deputy, agent, clerk, or other officer or employee, to divulge and make known in any manner the amount of income or any particulars set forth or disclosed in any report or return required under this act. Nothing herein shall be construed to prohibit the publication of statistics, so classified as to prevent the identification of particular reports or returns and the items thereof, or the inspection by the attorney-general or other legal representatives of the state, of the report or return of any taxpayer who shall bring action to set aside or review the tax based thereon, or against whom an action or proceeding has been instituted to recover any tax or any penalty imposed by this act. Reports and returns shall be preserved for three years and thereafter, until the commissioner orders them to be destroyed.