Tax Director Marie Okamura announced that on October 10, 2001, in Lihue, Kauai, Hawaii, Harry Ikeda, a local barber was found guilty by District Court Judge Frank Rothschild.

Harry Ikeda was found guilty on three misdemeanor violations for operating a business without a general excise tax license and for not filing his annual general excise tax returns for the years 1998 and 1999.

In trial, Harry Ikeda did not call any witnesses and proclaimed he was not subject to the general excise tax based upon his constitutional rights.  Despite Mr. Ikeda's arguments, Judge Rothschild found Mr. Ikeda guilty on all three counts.

Judge Rothschild ordered a pre-sentence report and sentencing is scheduled for Dec 4, 2001 at 10:00 a.m.

In accordance with the penalties provided by law, upon conviction, Mr. Ikeda shall be fined not more than $25,000 or imprisoned not more than one year, or both for each violation.

Tax Director Okamura continues to encourage taxpayers to voluntarily file their tax returns.  The department will generally not initiate a criminal investigation when taxpayers voluntarily come forward to report their failure to file or other omissions.