We should not be surprised that the Department of Revenue never thought to knock on Joop Bollen’s door and ask why he wasn’t paying bank franchise taxes (at least not until we brought his tax-dodging to their attention). A legislative audit finds that the Department of Revenue hasn’t been keeping sufficiently rigorous track of bank franchise tax payments from legitimate banks:
Internal controls were not adequate to 1) ensure that information being accepted from the banks is sufficient to verify the amount remitted is accurate, and 2) ensure bank taxes were accurately recorded and distributed on the State’s accounting system and reported properly in the State’s financial statements. This is the third consecutive audit to contain a similar finding [“Current Audit Findings and Recommendations,” Government Operations and Audit Committee, meeting documents, 2015.06.29].
Three audits in a row, and the Department of Revenue hasn’t sufficiently tightened up oversight of an important state revenue stream? Gee, you’d think someone in Pierre doesn’t want to get money from our wealthy bankers.
DOR says they have corrected this problem in part by switching databases, from Access to Cedar. The Government Operations and Audit Committee will hear about DOR’s solutions at its meeting today in Pierre. Given GOAC’s glaring lack of curiosity about EB-5 matters last year, don’t expect them to ask DOR to comment on whether their changes include getting EB-5 czar Bollen to cough up the bank franchise taxes he owes us.