Authorizes provision of monetary awards to whistleblowers who report State tax law violations committed by employers in construction industry.
This bill introduces significant changes to the existing framework of tax law enforcement in New Jersey, particularly within the construction sector. By providing financial rewards, the legislation is intended to empower and protect whistleblowers, thus enhancing accountability among employers. It is expected to deter tax evasion and encourage compliance with state tax obligations. Additionally, the bill offers explicit protections against retaliation for employees engaging in lawful whistleblowing activities, presumably under the provisions of the Conscientious Employee Protection Act. This aspect bolsters the bill's intent to foster a culture of integrity and transparency in tax reporting and compliance.
Assembly Bill A4265 aims to encourage the reporting of tax law violations committed by employers in the construction industry by offering monetary awards to whistleblowers. Under this legislation, the Director of the Division of Taxation in the Department of the Treasury is mandated to provide financial incentives to individuals who supply specific and credible information leading to successful administrative or judicial actions against offending employers. The awards range from 15% to 30% of the proceeds collected from such actions, which include taxes, fees, and penalties. However, if the information is deemed to have come primarily from public reports or media, the award is capped at 10%.
Some contention may arise regarding who qualifies as an eligible whistleblower. Individuals who acquire information through their official job functions within the Department of the Treasury or who attempt to file claims based on information sourced from ineligible individuals are excluded from receiving awards. This provision raises concerns regarding the potential hurdles for genuine whistleblowers and the effectiveness of the incentives offered. Moreover, some may argue that the tiered structure of awards could limit the enthusiasm for reporting unless the information is truly substantive, thus impacting the bill's overall effectiveness in uncovering tax violations within the construction industry.