Oklahoma § 68-2357.64 - Annual report on qualified investments and financial

§ 68-2357.64. Annual report on qualified investments and financial

statements to Commission - Annual written statement to investors Required notification to Commission - Credit reporting and report

filing systems.

A. Each qualified small business capital company shall file an

annual report with the Oklahoma Tax Commission no later than April

30 of each year which lists all qualified investments in or in

conjunction with such company which may qualify for the tax credit

allowed by Section 2357.62 or Section 2357.63 of this title. The

report shall state the amount of qualified investments in or in

conjunction with such company during the taxable year by persons,

partnerships or corporations and the social security number of such

person or the federal identification number of such partnership or

corporation making such qualified investments. The report shall

also include a schedule listing the type and amount of qualified

investment made by or in conjunction with the small business capital

company and such other information as the Tax Commission may

prescribe.

B. Each qualified small business capital company shall furnish

to each person, partnership or corporation which made a qualified

investment in or in conjunction with such company during the

preceding year a written statement showing the name of the small

business capital company, the name of the investor, the total amount

of qualified investment in or in conjunction with the company made

by such person, partnership or corporation, the amount of the

qualified investment which was subsequently invested by the capital

company in a small business venture, the date of such investment and

the name of the business venture invested in and such other

information as the Tax Commission may require. The statement shall

be attached to the income tax return or other applicable tax report

or return of such person, partnership or corporation in order to

qualify for the tax credit allowed by Section 2357.62 or Section

2357.63 of this title.

C. On or before April 30 of each year, the qualified small

business capital company shall provide to the Tax Commission a copy

of its annual financial statements, including documentation which

shall address, to the satisfaction of the Oklahoma Tax Commission,

the methods of operation and conduct of the business of the capital

Oklahoma Statutes - Title 68. Revenue and Taxation

company to determine whether the capital company is complying with

the terms of the Small Business Capital Formation Incentive Act and

any rules promulgated by the Tax Commission, including whether

qualified investments in Oklahoma small business ventures have been

made in the manner required by law. No credit shall be allowed for

an investment in a small business capital company unless the report

required by this subsection for the year in which the investment is

made is provided.

D. Qualified small business capital companies or any entity

making an investment in conjunction with investment by a qualified

small business capital company pursuant to Section 2357.63 of this

title must notify the Tax Commission within twenty (20) business

days if:

1. The investment in an Oklahoma small business venture is

transferred, withdrawn or otherwise returned; or

2. An occurrence upon which an investment is contingent has

taken place.

If the qualified investment is held in the Oklahoma small

business venture for less than five (5) years, the Tax Commission

shall revoke the verification of tax credits and take action to

recapture the tax credits pursuant to Section 11 of this act to the

extent such credits were authorized based upon an amount of

qualified investment that was transferred, withdrawn or otherwise

returned.

E. Any qualified small business capital company who refuses or

fails to comply with the provisions of this section or is hereafter

found guilty in a court of competent jurisdiction of any violation

of any Oklahoma tax law shall not be eligible to be a qualified

small business capital company for purposes of this act.

F. Any taxpayer who refuses or fails to comply with the

provisions of this section or is hereafter found guilty in a court

of competent jurisdiction of any violation of any Oklahoma tax law

shall not be eligible for the tax credits granted in Sections

2357.62 and 2357.63 of this title.

G. The Tax Commission is directed to immediately develop a

system for reporting of any income tax credits issued pursuant to

Sections 2357.62 and 2357.63 of this title and a system which

requires the filing of informational reports on how the qualified

investments were used, economic benchmarks achieved, implementation

of a business plan for the Oklahoma small business venture,

commercialization success, additional investments in the business by

other investors and job creation that has taken place.

Added by Laws 1997, c. 167, § 5, eff. Jan. 1, 1998. Amended by Laws

2006, c. 281, § 15, emerg. eff. June 7, 2006.