Genie & Co. v. Comptroller of Treasury

HARRELL, Judge.

In this case, we are called upon to clarify the application of a statutory civil penalty imposed by the Comptroller of the Treasury (“Comptroller”) for intentionally filing a false tax return, as set forth in Md.Tax-Gen.Code Ann. (“TG”) § 13-*554703.1 Responding to that call, we hold today that the statute must be interpreted as requiring that the Comptroller, in order to invoke the penalty provision, prove by clear and convincing evidence that a false return was filed with fraudulent intent. Furthermore, we hereby incorporate certain “badges of fraud,” currently used by…