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Colorado land scamAn investigation of the Oklahoma Tax Commission is long overdue.
A 2003 multicounty Grand Jury report describing the Oklahoma Tax Commission as "an environment ripe for corruption" was a red flag that official's simply ignored. A stream of evidence leaking out paints an even more vivid picture revealing the Oklahoma Tax Commission has been conspiring with tax credit abusers in a manner that facilitates tax credit fraud costing the public $100s million per year.
The current tax credit fraud involves Oklahoma's venture capital tax credit incentive program setup to serve an important need that is instead being used as a slush fund for some to avoid paying taxes and others to reap huge profits brokering these tax credits they get for free. A few companies may receive some benefit as a by-product. Any benefits are grossly disproportionate to the lost tax revenue.
Contrary to state officials' claims "nothing illegal is occurring" returning benefits disproportionate to funds received is "the marker of public fraud."
A list of uncovered wrongs committed by OTC include:
OTC allowing claiming tax credits on funds not at defined risk, a clear violation of the law. This is the scheme marker.
OTC the only state agency involved in the process is turning its back on the most obvious of schemes, while vigorously defending the secrecy of the documents that would expose their activities.
OTC has failed to properly review and contest numerous letters and forms filed by tax credit users. Letters if properly evaluated readily reveal the scheme.
OTC misuses its authority to issue "determination letters" for the purpose of providing abusers legal cover while committing the public to honor the frauds. Redacted copies of "determination letters" OTC issued under the 2006 Grandfather clause contain information suggesting many failed to meet the qualifications. This allowed taking advantage of the much higher tax credits to amount invested at risk ratios. For example, Scissortail's $5.40 in tax credits for each $1 invested was one allowed to use the clause.
OTC's cover up involves denying access to information, defying the Taxpayer Transparency Act and reporting deceptive and misleading information.
There is more than sufficient justification to raise the question of other public officials benefiting is behind failure of those officials to act.