(a) Generally. On 10 days' written notice, the Director may conduct an audit of the licensee's records for the year for which the annual financial statement has been provided. The audit shall be performed in accordance with generally accepted auditing standards. If the audit discloses that the licensee underpaid the admissions and amusement tax by 5% or more, the licensee shall assume all reasonable costs of the audit. The Director may perform no more than one audit on each licensee during a fiscal year, unless the most recent audit disclosed that the licensee underpaid the admissions and amusement tax by 5% or more. The records subject to audit shall include the returns and records filed and maintained by the licensee under the Tax-General Article, Title 4, Subtitle 2, of the State Code.
(b) Appeal to arbitration. A licensee has the right to appeal the results of an audit performed by the Director to arbitration under § 11-2-228.
(1985 Code, Art. 16, § 2-319) (Bill No. 96-91)