State officials are defying this law by refusing to release complete details of the tax credit program.

State officials in direct defiance of the Taxpayer Transparency Act caved in to special interest and delayed providing the public access to the very tax credits discussed on this Website while they move to amend the law to permanently block revealing tax credit information.

This action has all the markings of a cover-up and goes unchallenged by the media.

Here is the way blocking worked.

1. Officials used the excuse that only tax credits issued an approval after the "Taxpayer Transparency Act" went into effect on November 1, 2007 should be revealed to the public. Yet they only applied this principle to tax credits issued under the Capital Formation Incentive Act, just one of many programs using tax credits. Information from previous years is reported on all other state financial data.

2. Officials claim: The need to protect investors personal identities, which is only a very small part of the body of financial data related to the "Capital Formation Incentive Act" funding.

A. The total body of tax credit financial data contains very little private personal data. The rest contains the program wide information that would allow the public to clearly understand the costs, how the money was being spent and the success of the program.

B. Except for SSNs personal privacy is released recipients of all other programs, including winners of the lottery.

C. Potential investors would be reluctant to invest. An argument totally opposite of what evidence demonstrates -

Those opposing release of information related to the infamous tax credit abuse claim the Taxpayer Transparency Act only authorizes the release of personal investor information gathered after the act went into effect November 1, 2007.

First and foremost the Taxpayer Transparency Act does not require the release of personal investor information. Only information about the venture capital companies and the ventures. -

Note: The act requires information be made available on the venture capital companies and the programs, not the actual investors the program is designed to attract.

SECTION 2. AMENDATORY 68 O.S. 2001, Section 205, as last amended by Section 1, Chapter 281, O.S.L. 2006 (68 O.S. Supp. 2006, Section 205), is amended to read as follows:

Section 205. C.

27. The disclosure of information, as prescribed by this paragraph, which is related to the proposed or actual usage of tax credits pursuant to Section 2357.7 of this title, the Small Business Capital Formation Incentive Act or the Rural Venture Capital Formation Incentive Act. Unless the context clearly requires otherwise, the terms used in this paragraph shall have the same meaning as defined by Section 2357.7, 2357.61 or 2357.72 of this title. The disclosure of information authorized by this paragraph shall include:

a. the legal name of any qualified venture capital company, qualified small business capital company, or qualified rural small business capital company,

b. the identity or legal name of any person or entity that is a shareholder or partner of a qualified venture capital company, qualified small business capital company, or qualified rural small business capital company,

c. the identity or legal name of any Oklahoma business venture, Oklahoma small business venture, or Oklahoma rural small business venture in which a qualified investment has been made by a capital company, or

d. the amount of funds invested in a qualified venture capital company, the amount of qualified investments in a qualified small business capital company or qualified rural small business capital company and the amount of investments made by a qualified venture capital company, qualified small business capital company, or qualified rural small business capital company; or

This is an act of making a false claim by misrepresenting the act to delay any reporting until state lawmakers can meet and prevent any disclosure.

Even if that claim were true it would still be the equivalent of amputating an arm to cure a scratched finger where a simply band aid is more than adequate. Private information is but a very small fraction of the total body of information about the program. Examples,

  • How much total is involved?
  • The identity of the venture capital firms receiving tax credits?
  • The identity of the business ventures receiving money from tax credits?
  • How much each received?
  • How many jobs were created by each venture?
  • etc.

None of the above involves the release of any personal information!

Case in point, the so called investors are prevented from investing directly in the venture. The law dictates that the ownership must remain with the venture capital company. The investors invest in the venture capital company. This allows the venture capital company to avoid revealing certain information about its investors. The key, what else are they trying to avoid revealing?

We do know that this removes the so called investors from direct involvement in the venture. A complete accounting of each venture's financial's used to qualify for the tax credits can be made public without revealing any personal information.

This simply another maneuver to prevent the public from access to information on a fraud.

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