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Colorado land scamTo recap: After Oklahoma Tax Commission Administrator, Tony Mastin, was exposed for his role in tax credit fraud and cover up that included: withholding, reporting false and misleading information to hide fraud; Mastin made a botched attempt to cover up, the cover up.
Mastin tried to sneak $168 million of the previously withheld 2007 tax credits on to Open Books in a way it would not noticed by the typical visitor. The move was expected, monitored, and caught. The sneaky method was previously explained, and can be found on our Website.
The new information shows, among others, Weyerhaeuser used $54.4 million in Oklahoma Investment/New Jobs tax credit for 2007. A eye catching number for any program, and especially for the program claimed. This opens more than one door into what is happening.
First, mounting evidence suggests the program "Oklahoma Investment/New Jobs Credit" is being used to hide tax credits taken under the more lucrative and controversial programs being watched. OINJC, is off most radars offering a minimal 1 or 2% tax credits compared to the abusers/ program of choice Rural Small Business Venture Capital, which pays 30%. It is so easy to slide those programs over to the off the radar program, when you hold everything in secrecy. More believed to be hidden this way will be discussed later. First, let's see what is so obviously suspicious about Weyerhaeuser's $54.4 Million.
OINJC allows tax credits equally to the larger of 1% of the amount invested or $500 per new employee during a year. The tax credits double to 2% or $1,000 per employee if the investment exceeds $40 million.
Weyerhaeuser headquarters' website shows they have 165 employees in OK and spent a total of $160 million in major capital investment spending, and paid $3 million Oklahoma in taxes for the 5 year period 2004-08. The tax credits in question are for 2007, only one of those 5 years. This is so far out of whack, we can assume worst case scenario that Weyerhaeuser invested the entire $160 million in 2007.
This is still so obvious we don't even need a pencil and paper. $3.2 million is tops and falls more than $50 million short. We won't run the exercise, but owing $54 million in income tax for one year and only owing $3 million in all state taxes for the entire 5 years, looks suspicious too.
Where are the $54 million in new jobs? It is the secrecy, stupid!