Please see the earlier post on NV ANTI-Corruption Dept. of Taxation Protesting here: http://nevadastatepersonnelwatch.wordpress.com/2012/07/25/july-2012-updates-continued-nevada-anti-corruption-targets-dept-of-taxation-for-fraud-and-retalation/
We’re working on a new video about the Nevada Department of Taxation tentatively titled – Nevada Department of Taxation: An orgy of CORRUPTION – Where did $250,000,000.00 million dollars go?
The content covers the department scandals under the Dino DiCianno administration up to the new leadership of Christopher G. Nielsen who was the Deputy Director under former Dino DiCianno regime. DiCianno “abruptly retired” in March 2011. Chris Nielsen was the General Counsel in the Office of Governor Jim Gibbons and as Senior Deputy Attorney General in the Office of the Attorney General for the state of Nevada.. Mr. Nielsen then reappointed Deputy Director to Taxation after Gibbons lost to Brian Sandoval.
Nevada’s top tax man abruptly retired Friday, a day after he revealed his agency hadn’t audited mining industry tax collections in two years and lacked trained staff to determine if the mining companies were paying proper net proceeds taxes.
In a statement, Gov. Brian Sandoval thanked Dino DiCianno for his years of service and wished him well in his retirement.
“He has been a loyal and dedicated public servant for three decades,” Sandoval said.
The governor said Chris Nielsen, taxation deputy director, will lead the agency until a permanent replacement is found.
Sandoval asked Nielsen to prepare a transition plan and immediate strategy to resume auditing mine operators to ensure the proper payment of the net proceeds of minerals tax. He also directed the state’s Internal Audit Division to assist the tax agency.
In a hearing Thursday before the Senate Revenue Committee, DiCianno told lawmakers that his department only had two-and-a-half people to conduct audits, and that they relied largely on the companies’ revenue projections and reports in calculating taxes.
It prompted a terse exchange with Senate Majority Leader Steven Horsford, D-North Las Vegas, who at one point said he may “need to start taking blood pressure medication.”
DiCianno also said the governor was unaware of the lack of audits, but that he had asked his staff to “dust off the internal audit manual” and get up to speed.
Nevada’s mining industry, with gold prices soaring to record highs, is a shining target in the gloom of the state’s budget battles as the state tries to claw its way out of the Great Recession while leading the nation in joblessness, foreclosures and bankruptcies.
Also revealed during Thursday’s hearing were the business deductions the mining industry is allowed to take before declaring their taxable net income. The deductions include an array of expenses including advertising costs, severance payments, employee or worker bonuses and sales tax.
According to the taxation department, deductions for Barrick Gold Corp. will amount to $1.7 billion this year. These deductions lower the mining company’s taxable income to $1 billion. Were taxation based on gross income instead of net, the tax department’s report shows Barrick would face taxes on almost $2 billion in 2011.
The more things change, the more they stay the same…
Anyway, we found some old pictures which reminded us of the Texting scandal of former disgraced Nevada Jim Gibbons. Gibbons’ dedication to his office was called into question again six months later. On April 2, 2009, while appearing before a legislative panel to promote his renewable energy bill, Gibbons pulled out his cellphone and began texting. News stories used this incident to revisit the 860 messages he sent to his alleged paramour, and a 37-second video of him introducing himself to the panel, with a 17-second break in order to send the text message and refocus on the hearing was posted on YouTube
Jim Gibbons pledged during his 1996 campaign for governor to not impose new taxes on businesses or individuals in Nevada. Gibbons broke his tax pledge on several occasions. The state’s Business Tax on employer’s payrolls which was initiated in 1992 was increased under Gibbon’s term and renamed the “Modified Business Tax”. Various mandatory fees and licenses administered by the Nevada Department of Taxation were also significantly increased under Gibbon’s term. Most particularly was the State of Nevada’s yearly business license fee. This license fee was doubled from $100.00 to $200.00. Due to the additional tax burden of the increased Modified Business Tax on Nevada’s small businesses during a downward business cycle, this tax was readjusted to a lesser rate by the 2011 Nevada legislative session during the leadership of Governor Brian Sandoval.
It was also discovered during the 2011 Nevada Legislative hearings that the Nevada Department of Taxation’s director, Dino DiCianno, never had the Tax Department under Gibbon’s leadership conduct Net Proceeds of Minerals (NPM) tax audits of mining operations within Nevada. Mr. DiCianno’s claim was that the Tax Department did not have qualified auditors capable of performing NPM audits. During Gibbon’s term market prices of precious minerals were at historical and significant high levels. The market selling price of Gold was in the $1,300 to $1,500+ per ounce range during Gibbon’s term. Gibbons was also a geologist and lawyer.
During Gibbons term Nevada lead North America in Gold and Silver production. Also Nevada was ranked No. 3 in the world for Gold production. After Mr. DiCianno’s testimony to the Nevada legislature that no NPM audits were conducted while Gibbon’s was governor he resigned the following day.
Governor Sandoval latter appointed William Chissel, a CPA with an auditing background as the replacement director of the Nevada Tax Department.
In the release of the Nevads Department of Taxation’s annual report in January 2012 which represented the fiscal year of July 1, 2010 through June 30, 2011, it was presented that the audit penetration rate (percentage of Nevada taxpayers audited of the total population of registered Nevada businesses) was the lowest amount in 6 years. The Tax Department during this 6 year period in the years 2006 and 2007, made a significant investment in new tax administration and audit software along with employee training to provide increased efficiency and audit performance. Accenture Consulting Services formerly a unit of Arthur Anderson & Co. was selected to design and implement the tax administration software. Revenue Solutions Inc. of Boston, Massachusetts was selected as a subcontractor by Accenture to design and implement the tax auditing software system.
Approximately $40,000,000.00 was invested in new tax administration and audit software. The results of this investment after implementation of this system as shown in Tax Department’s annual reports (2008, 2009, 2010) have been abysmal.
During the first full year of leadership under the new Director William Chissel the Tax Department was frought with turmoil and discontent.
Mr. Chissel exited the director’s position and was replaced by a former Deputy Attorney General assigned to the Department, Christopher G. Nielsen. Mr. Nielsen assumed the Executive Director’s duties on July 1, 2012. Mr. Nielsen was previously a Deputy Director of the Tax Department and was also an Acting Director after the termination of Dino DiCianno. Mr. Nielsen was in the position of Acting Director for several months prior to the appointment of William Chissel as Executive Director.
The Sandoval administration was immediately immersed in controversy when Sandoval retained Nevada Department of Taxation Director Dino DiCianno from the previous Jim Gibbons administration. 
It was discovered during the 2011 Nevada Legislative hearings that the Nevada Department of Taxation’s director, Dino DiCianno, never had the Tax Department under Gibbon’s leadership conduct Net Proceeds of Minerals (NPM) tax audits of mining operations within Nevada. Mr. DiCianno’s claim was that the Tax Department did not have qualified auditors capable of performing NPM audits. During Gibbon’s term market prices of precious minerals were at historical and significant high levels. The market selling price of Gold was in the $1,300 to $1,500+ per ounce range during Gibbon’s term. Gibbons was also a geologist and lawyer. The Nevada Department of Taxation closed the Elko, Nevada tax office in June 2010 in response to the requested Gibbons budget cuts. 
During Gibbons term Nevada lead North America in Gold and Silver production. Also Nevada was ranked No. 3 in the world for Gold production. After Mr. DiCianno’s testimony to the Nevada legislature that no NPM audits were conducted while Gibbon’s was governor he resigned the following day. See Bloomber Business Week and AP story “NV tax director abruptly retires after audit flap” and Las Vegas Review Journal.  
Governor Sandoval latter appointed William Chissel, a CPA with an auditing background as the replacement director of the Nevada Tax Department. 
On February 14, 2012 the Las Vegas Review Journal did a series of stories entitled “Taxation Department losing tens of millions of dollars a year, ex-employees say”. The story tells the various scandals that occurred in the Nevada Department of Taxation under Director Dino DiCianno.  
After one year into his term as Governor, Nevada received a D- and ranked 42nd among states for anti-corruption and government transparency efforts, according to a new report from State Integrity Investigation. 
Nevada received a D- and ranked 42nd among states for anti-corruption and government transparency efforts, according to a new report from State Integrity Investigation. Nevada rated poorly in a number of areas, including grades of F for state pension fund management, lobbying disclosure and internal auditing, grades of D for public access to information and legislative accountability and a C- for executive accountability. 
In response to the wholesale corruption validated by the D- grade, a large number of Nevada citizens formed a coalition called the Nevada ANTI-Corruption movement.
The Nevada ANTI-Corruption movement created a website www.NevadaStatePersonnelWATCH.wordpress.com and a youtube video series called CSI: Carson City to correspond to the massive 130 foot long by 4 foot tall Crime Scene banner.
Sandoval is rumored to be on the short list for Republican President hopeful Mitt Romney’s Vice President pick.