"we issue letter rulings outside the requirements of the statute at the discretion of the office"
Dawn Cash, Director Tax Policy, Oklahoma Tax Commission, in an email dated September 4, 2009, responding to a question from an OTC employee.
1. George Kaiser, Chairman of BOK, Oklahoma's wealthiest individual, and Forbes lists as the 24th wealthiest American. George Kaiser received $87 million or 95% of tax credits authorized a BOK subsidiary, Cottonwood Valley Ventures, one of only two firms allowed tax credits, under the state's "Venture Capital" tax credit program. Cottonwood sold $87 million in tax credits to Kaiser for $18 million. Kaiser saved $69 million in state tax income taxes, for what was concluded after examination to be BOK loans, and not investments as required. More
2. Robert Heard, who the state out sourced oversight of this tax credit program: received $3,544,563, or 99% of the tax credits, Heard gave another of his firms, Cimarron Business Capital. Heard received his tax credit directly.
Below are conclusions derived after examining
(1) state and federal records, including tax credit claims, for 2006 thru 2009.
Enacted in 1987, the "Venture Capital" tax credit program was placed under the oversight of Oklahoma Capital Investment Board.
To escape accountability OCIB was created as a state public trust; then funded using an unconventional method, often referred to as "debt, off the books" or "off-balance sheet financing." In this case it involved giving OCIB $100 million in tax credit, to avoid appropriations funding and the states system of financial accountability. A red flag so large it takes a fleet of Boeing 747, to lift off the ground and tow.
In 2000, using a series of more highly questionable under the table actions, state officials outsourced OCIB oversight to company managed Robert Heard. This was done is a way that gave Heard sole oversight authority over Oklahoma's "Venture Capital" tax credit program; and unlimited tax credits; in secrecy and free of all accountability.
Heard only allowed two funds mentioned above to use the program and receive tax credits. One firm was his own.
This arrangement allows Heard to authorize BOK tax credits, which BOK sells to Kaiser at an 80% discount; leaving Kaiser far removed from any questionable activities, and in a position, Kaiser could claim he was not aware of what was occurring. EXCEPT, how does an intelligent, wealthy business person, not questioning something as significant yet as simple as buying $87 million for $18 million. If that were on the up and up, no government would ever collect taxes to operate.
No oversight, no limits, no accountability, unlimited access to tax revenue, no jobs, no economic growth. No one sees a problem with this?
No oath, no state ethics laws, no state regulations, no accountability. Just, full authority to hand out tax revenue, with no one watching. The full power and force of the Oklahoma state government empowered to protect the secrecy of Heard's operation!
And, so many red flags littering our skies, we have a total eclipse of the Oklahoma sun. Yet we are so apathetic and gullibly naïve, we embrace being told that is a dust storm, bringing new jobs to Oklahoma.
Notes: (1) best effort evaluation of information found reported and disclosed in state tax credit claims and federal reports filed as required by SEC, FDIC, Federal Reserve Board and Comptroller of Currency, for 2006 thru 2009.
See rest of story at http://prowlingowl.com
To be removed from this mailing list send email to firstname.lastname@example.org