Idaho tax commissioners rebut allegations
BOISE – Idaho’s four state tax commissioners have formally disputed a whistle-blower’s report that accused them of cutting secret deals to excuse multistate corporations from paying millions in taxes.
“The Commission, and the individuals involved, reject as completely untrue any allegation that cases are illegally or inappropriately compromised,” the commissioners wrote.
Auditor Stan Howland, who has worked for the Tax Commission for 28 years, three weeks ago sent a 17-page report detailing his claims to state lawmakers, the governor and the Idaho attorney general. Howland contended that the commissioners routinely settle disputed tax cases with corporations, and that confidentiality laws prevent anyone from finding out about it.
Commissioners Royce Chigbrow, Sam Haws, Coleen Grant and Tom Katsilometes wrote in their response: “What Mr. Howland deplores as unjustifiable secrecy, others regard as laudable confidentiality designed to protect privacy.”
They contended that tax law for multistate corporations is more complex than Howland suggested, and that confidential settlements therefore often are preferable to litigation or published, precedent-setting rulings.
The commissioners also wrote that they don’t involve auditors directly in the process of compromise agreements because doing so would “involve the auditor in judging his own audit. This undermines, and will seem to undermine, basic notions of fair play.”
Howland contended that the commission has made increasing use of confidential settlements in multistate, corporate tax protests for the past 17 years, and that it used such settlements for nearly all multistate, corporate protests in the past year.
“These special deals are available primarily to those companies that are aware of the commission’s willingness to compromise audited tax returns,” Howland wrote. “The number of corporations receiving these ‘deals’ has increased over the years to a point where most large corporations now automatically protest all audits in anticipation of receiving their ‘Idaho tax break.’ “
Gov. Butch Otter requested the formal response from the Tax Commission.
“We’ll be looking at it closely,” said his press secretary, Jon Hanian.
State lawmakers, who also were sent copies of the response Wednesday, have requested a formal attorney general’s opinion on whether any laws were broken; authorized a special meeting of the Senate tax committee this summer to review the allegations; and called for possible changes in state laws.