The ruling invalidates and requires state officials to recover more than $500 million in unpaid taxes, where unearned tax credits, where used to avoid paying. In addition, this ruling exposes key factors that clearly demonstrates Oklahoma's three most costly economic development programs were created and have been operated to allow abuses, stripped of features to prevent and catch abuses and hide what is occurring from the public.
It is important to understand the requirements an investment must meet to qualify for tax credits.
The ruling pointed out 3 factors that must be present to qualify for economic development tax credits. Then pointed out the public is not receiving anything in return, and therefore fails to meet constitutional requirements. The ruling also pointed out "controls and safeguards" requires scrutiny. It will require an investigation to determine if there are sufficient "controls and safeguards." Evidence clearly shows there is little if any "controls and safeguards."
1. The wrong.The ruling is affirming the obvious, tax credits are being given before and without knowing if requirements have been met.
The ruling took dead aim at "2. adequate consideration" and "3. adequate controls and safeguards"; and pointed out where the wrong is.
2. The wrong. Tax credits are given for claiming to have invested in businesses. The investments often never occur or invested 15% of the amount claimed at most.
3. The wrong. Adequate controls and safeguards are needed to insure the middlemen invested what they said they would. Evidence has been uncovered revealing requirements are not being met, documentation is required and maintained. There are no safeguards and controls. "Adequate controls and safeguards" have been ignored, to hide what "public is not receiving adequate consideration."
Open Books came along requiring the information be made public. To abide by the law would have required officials to expose their own wrong. The law was ignored, by leaving 2 of the 4 rural small business and small business tax credits, off Open Books. Then the wrong information was substituted for the other two. As always happens, cover up begats cover up, and non-appropriated spending and tax refunds had to be left off Open Books; since the missing tax credits are exhanged for tax refund checks at face value.
This following has been pointed out to officials, lawmakers and the media on numerous occasions, with step by step directions to verify. Only to be ignored.
A. False and missing information on Open Books, can be easily seen by anyone. It only takes a few minutes.
B. Evidence of the $643 million in fake loans documents Paul Doughty used to inflated tax credit claims.
C. Paul Doughty, the subject of a federal investigaiton into bank fraud, involving the $643 million in fake loans and various other schemes.
D. Letter from John Daniel former president of Quartz Mountain Aerospace stating QMA never received $189 million Doughty claimed to invest.
E. OTC employees being directed to ignore auditing claims and issue tax refund checks as fast as possible for $60 million tax credits given to Doughty for the false claim.
This list is endless.
Now Dank want's to consider opinions on the merits of tax credits? Ignore fraud like nothing ever happened. The very same as in 2006, when officials ignored fraud, and promised to close a loophole. Tax credit fraud nearly tripled the next year.
It should be noted, but too lengthy for this space. This law provides a way for public officials to receive the tax credits; protection from being discovered; and a defense to claim they did not know they were benefiting.