[Vision2020] LARGE Corporate Tax Breaks in Idaho

[Tom Hansen]

Just a reminder for you blahg weenies that are struggling with English 
comprehension . . .

Courtesy of KTVB (Boise, Idaho) at

http://tinyurl.com/CorporateTaxBreaks

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Whistleblower: Tax Commission Gave Companies Big Breaks

John Miller
Associated Press 

Updated May 28, 2008

BOISE - A veteran state Tax Commission auditor Wednesday released a 17-
page whistleblower report alleging that agency commissioners for years 
have improperly settled tax protests by large corporations, saving the 
companies money but shorting Idaho by millions of dollars. 

Stan Howland, a corporate income tax auditor for the tax collection agency 
for 28 years, said the four appointed members of the Tax Commission, as 
well as the deputy attorneys general who advise them, routinely allow 
largely out-of-state corporations to pay just a percentage of what they 
really owe. 

Then, commissioners use disclosure loopholes in the state's public records 
laws to keep these decisions secret, Howland said in his report, which he 
delivered to Gov. C.L. "Butch" Otter, Attorney General Lawrence Wasden and 
105 lawmakers. 

He said the practice began about 17 years ago and has continued, despite 
complaints from auditors who believe it violates state law. Howland said 
auditors feel undermined when companies win compromise settlements worth 
hundreds of thousands of dollars - even though the auditors' objections 
are proper and reflect state tax law. 

"I'm hoping the Legislature will totally review all of the activities of 
the Tax Commission and all of its internal control policies, or lack 
thereof, and they'll address this situation," Howland told The Associated 
Press in an interview, adding he's tried unsuccessfully to address the 
matter internally. "I believe Idaho taxpayers are suffering because of 
deals cut with large corporations." 

Idaho's tax commissioners are Royce Chigbrow, an Otter appointee from 
2007; Tom Katsilometes, named to the panel by then-Gov. Dirk Kempthorne in 
2005; and the two longest-serving members, Severina "Sam" Haws, named by 
Gov. Phil Batt in 2000 and Coleen Grant, appointed by Gov. Cecil Andrus in 
1991. Commissioners serve six-year terms. 

Lawmakers who oversee tax issues in Idaho said they hadn't yet seen the 
report and couldn't comment. 

"I'll look at it, and follow up from there," said House Revenue and 
Taxation Chairman Dennis Lake, R-Blackfoot. "But as we speak, I have no 
knowledge of it." 

Howland contends the improprieties result when companies file an incorrect 
Idaho income tax return, which is then corrected by the audit staff. When 
a company formally protests, he says it's become standard practice for a 
tax commissioner to offer a so-called "Confidential Compromise and Closing 
Agreement" requiring them to pay only a percentage of what is really owed. 

"This allows these companies to avoid paying millions of dollars of income 
tax that are properly due the state of Idaho, and to do so in complete 
secrecy," Howland said in his report. "The commission has settled the 
majority of all multistate corporate protests over the past 17 years with 
C&Cs. The commission has settled almost all multistate corporate protests 
in the past year in this manner." 

Howland, who said he is about 1 1/2 years from retirement and wanted to 
take a stand now, contends the companies share information among 
themselves about how to take advantage of this practice in Idaho. He 
doesn't identify the companies in his report, saying that would violate 
state law. 

"The commission has operated that way for so many years, I think they just 
take it for granted," Howland said. "They don't see that all of the other 
taxpayers in this state are paying their full tax, and it's not fair." 

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Seeya round town, Moscow.

Tom Hansen
Moscow, Idaho
 
Join us at The First Annual Intolerista Wingding, April 17th, featuring 
Roy Zimmerman and Jeanne McHale.  For details go to . . .

http://www.MoscowCares.com/Wingding

Seeya
there.

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