Oklahoma § 68-2357.75 - Reporting to Oklahoma Tax Commission

§ 68-2357.75. Reporting to Oklahoma Tax Commission

A. Each qualified rural 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 2357.73 or Section 2357.74 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 rural small business

capital company and such other information as the Tax Commission may

prescribe.

B. Each qualified rural 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 rural

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

amount of qualified investment in or in conjunction with the company

Oklahoma Statutes - Title 68. Revenue and Taxation

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

qualified investment which was subsequently invested by the capital

company in a rural 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 2357.73 or Section

2357.74 of this title.

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

small business capital company shall provide to the Tax Commission a

copy of its annual financial statements, including documentation

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

address the methods of operation and conduct of the business of the

capital company to determine whether the capital company is

complying with the terms of the Rural Venture Capital Formation

Incentive Act and any rules promulgated by the Tax Commission,

including whether qualified investments in Oklahoma rural small

business ventures have been made in the manner required by law. No

credit shall be allowed for an investment in a rural small business

capital company unless the report required by this subsection for

the year in which the investment is made is provided.

D. Qualified rural small business capital companies or any

entity making an investment in conjunction with investment by a

qualified rural small business capital company pursuant to Section

2357.74 of this title must notify the Tax Commission within twenty

(20) business days if:

1. The investment in an Oklahoma rural 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 rural 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 22 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 rural 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 rural 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

Oklahoma Statutes - Title 68. Revenue and Taxation

shall not be eligible for the tax credits granted in Sections

2357.73 and 2357.74 of this title.

G. The Tax Commission is directed to immediately develop a

system for reporting of any tax credits issued pursuant to Sections

2357.73 and 2357.74 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 rural small business venture,

commercialization success, additional investments in the business by

other investors and job creation that has taken place.

Added by Laws 2000, c. 339, § 5, eff. Jan. 1, 2001. Amended by Laws

2006, c. 281, § 26, emerg. eff. June 7, 2006.