Top Iraq contractor skirts US taxes offshore

[Robbien]

Source: Boston Globe

CAYMAN ISLANDS - Kellogg Brown & Root, the nation's top Iraq war contractor and until last year a subsidiary of Halliburton Corp., has avoided paying hundreds of millions of dollars in federal Medicare and Social Security taxes by hiring workers through shell companies based in this tropical tax haven.

More than 21,000 people working for KBR in Iraq - including about 10,500 Americans - are listed as employees of two companies that exist in a computer file on the fourth floor of a building on a palm-studded boulevard here in the Caribbean. Neither company has an office or phone number in the Cayman Islands.

The Defense Department has known since at least 2004 that KBR was avoiding taxes by declaring its American workers as employees of Cayman Islands shell companies, and officials said the move allowed KBR to perform the work more cheaply, saving Defense dollars.

. . .

In interviews with more than a dozen KBR workers registered through the Cayman Islands companies, most said they did not realize that they had been employed by a foreign firm until they arrived in Iraq and were told by their foremen, or until they returned home and applied for unemployment benefits.

"They never explained it to us," said Arthur Faust, 57, who got a job loading convoys in Iraq in 2004 after putting his resume on KBRcareers.com and going to orientation with KBR officials in Houston.



Read more: http://www.boston.com/news/world/articles/2008/03/06/top_iraq_contractor_skirts_us_taxes_offshore/

[tsstranger]

1. KBR

Is this surprising to ANYONE that this is happening under the eye Bush Regime? I can't believe that anyone in this country wants four more years of this stuff.

[BB1]

3. at least 20 % doesn't know what's happening at all

40 % doesn't care,

and the other 40% see their elections stolen time and again, which makes them 'sore losers'. So even if no-one wants four more years of this shit, who's gonna make sure it won't happen?

[Robbien]

6. The article states that it started while Cheney was in charge

Right after Cheney came on board Halliburton the system was set up.

So it isn't just happening under the Admin's noses, the Admin established the practice. Or at least the OVP part of this Admin.

[thecrow]

7. Right after 9-11 when they were trying to reconstuct the US economy

there was some company that had set up businesses in Ireland (IIRC) Anyway....the company was *forgiven* millions and millions of tax dollars unpaid if they would come back and do business in the US.

[BrklynLiberal]

36. My exact thoughts....almost word for word.

[Bozita]

2. sheer.fucking.insanity.

How very Bushlike.

[OKthatsIT]

8. You think Congress will do anything?

Don't waste your time pondering that one.

[saigon68]

21. Joementum Limpmann will do nothing of the sort

[L0oniX]

23. ...

[saigon68]

42. Nice "Whippy" Tail

[LynnTheDem]

4. Taking advantage of Americans, especially our troops. It's the republican way.

And that's why anyone not a billionaire who votes republican votes against themselves (and are the dumbest MFers on the planet).

[TechBear_Seattle]

10. Ignore what the Republicans are doing or actively collude with them. It's the Democratic way.

Don't believe me? Look at how agressively the Democrats in Congress are pursuing drug allegations in baseball, compared to how agressively they are pursuing multi-million dollar tax evasion, war crimes and treason charges against the Republicans.

[TankLV]

19. MERCENARIES - at the EXPENSE of our "troops"...

we should not shed a tear or a single moment of concern for these SCUM...

They make buko bucks AT THE EXPENSE of our "troops"...

I'll send them as much "concern" as I do their FELLOW REPUKES...

[thecrow]

5. Here's what we do.... declare the Cayman Islands a state!

I bet that will ruffle some feathers.

Seriously, though... if the US would declare as a state any country that offeres a tax haven to US companies, you'd see those countries shut this down this and FAST.
The only reason they do this is because they CAN.

If the other country would have to declare itself a state or else face the prospect of war, I think the practice would stop. Also the companies who've done this need to be fined at least the amount of the taxes they've escaped. I think probably double the taxes they've escaped would be better.
DO not allow them to do ANY business in other countries.
Get their tax dollars now.
I mean, we all have to pay taxes don't we?
This makes me so mad.

Edit: to add to rant :)

[Robbien]

17. Europeans are fighting the same battle, only over accounts in Liechtenstein

EU Newspapers are all up in arms railing against the governments who are going after the tax evaders. Saying it is a class war of the poor against the rich.

Glossing over the fraud and corruption and the illegality.

The world needs a free press.

[Ghost Dog]

40. Yes, but they're going after individuals, not corporations. n/t

[Ghost Dog]

39. British Colony n/t

[SpiralHawk]

9. "SNEER, smirk" - Dickie "Five Military Deferments" Cheney & republicon cronies

[N4457S]

37. But For Guys...

...who are supposed to be so dumb, they twice beat the Democrats in this decade.

If Hillary is the eventual Democratic nominee, they'll do it again.

[bluesmail]

11. UnAmerican bastards

[fed-up]

12. if they want to save defense dollars they should BRING HOME THE TROOPS & fire Blackwater nt

[peacetalksforall]

13. What's wrong with your employer being a ghost company that doesn't

pay taxes? Everyone knows that ghosts don't pay taxes. But, I also thought ghosts didn't use computers on the fourth floor of a building on an island in the Caribbean.

[Baby Snooks]

14. Contract labor

This is really no different from contract labor although this certainly is a new twist to it. Normally the employee pays the taxes. For some reason, apparently they don't here. Do they even pay income taxes?

Contract labor as I recall came into vogue during the reign of LBJ and while you can point a finger at the Bush Administration with regard to Halliburton the reality of Halliburton is that it was, again, part of the LBJ "machine" and for some reason many Democrats don't like that reality. But it is the reality.

Eisenhower didn't warn us about the Republican "military-industrial complex" now did he? He just warned us. Most of us assumed the Democrats would never screw us. But they did, didn't they?

There's an old joke about Texas politicians. They decide which party they belong to based on which county they plan to run for office in.

Anyone who really looks at the history of Halliburton will realize that it's really not a funny joke.

[Blue_Tires]

15. k+r

[truthisfreedom]

16. These companies are ANTI-AMERICAN and should be declared ENEMIES OF THE STATE.

Plain and simple.

[wordpix]

28. fully agree. I call for more investigations and then let the heads roll! TRUTHOUT!!

[TankLV]

18. I could care less about the MERCENARIES...

And they shoulc throw the book at KBR, Halliburton and CHENEY...

These ASSHOLES knew what they were getting into, they are making buko bucks AT THE EXPENSE OF OUR SOLDIERS - and now they are crying.

FUCK THEM...

While I think KBR and their ilk should be forced to DISMANTLE corporately - cease to exist - and their CEO's thrown into PRISON for spreading WAR CRIMES and INSTIGATING WARS and ARMS TRADING all over the globe, the greedy SCUM who work for them should be of NO CONCERN to us - maybe we can help them ONLY AFTER ALL OTHER CASES NEEDING URGENT ATTENTION IN THIS COUNTRY GET FIXED!

[DirtyDawg]

20. John Edwards would have gone after...

...these bastards. But there's not a candidate left in the race that'll do a damn thing. They're too beholden to the 'moneyed interests'. About the only thing I can look forward to now is that four years of a Demo Presidency will finally prove to the American people - whomever that may be - that 'the people's candidate' needs to come in and clean house. It's time that these global corporations understood that there's a price to be paid for treating this country as simply another market, albeit a big one, to be exploited. If you want us you've got to be with us.

[L0oniX]

22. Typical of corporations ...no surprise here. What are you going to do?

I'd cancel all contracts with them. I would ban any Americans from working for them. I would close the fuckers down and jail everyone on the board of directors and the ceo. I would also charge all the employees with tax evasion.

[Deny and Shred]

24. "...a further eroding of the tax base." Better believe it.

If the Caymans is shut down, does anyone really think these multi-national corporations will simply repatriate to the US and pay their fair tax share after spending so many years enjoying these kinds of advantages? They have already and will continue to go elsewhere, like Dubai.
This is among the pitfalls of free trade. Send id the paperwork saying a room in the Caymnans or elsewhere is your new corporate HQ, and then they pay little if any US tax. Good thing the Government's been enriching these firms with billion of taxpayer money for so long. Off you go, ta ta, don't forget to write, the rest of us will take care of these trillions in debt. Glad you made out like bandits, enjoy it.
I say revoke their citizenship if they go, and make these firms, or any firm connected to any of their officers, unable to bid, or no-bid for any US government contract ever.

[Earth_First]

25. Congress: Cancel the fucking contracts. TODAY.

You want a government contract? You base your operations out of the United States. Period.

Not some fucking folder in a tax-shelter offshore.

[Auggie]

26. Don't you know? Congress is too busy investigating steroids.

[wordpix]

27. surprise, surprise that Unca Dick's subsidiary is offshore, avoiding taxes

shocked, I tell you! :puke:

[NBachers]

29. Benedict Arnold Corporations

Anyone remember Kerry hammering again and again about "Benedict Arnold Corporations" who do business with the US Government and locate offshore to avoid taxes?

[happygoluckytoyou]

30. GOP = CHEAP LABOR .... the leaders could care less about abortion, guns, gays, and the military

FOLLOW THE MONEY...
when average americans awaken to this understanding, nobody earning under $200,000 per year would even THINK about voting for a Republican

taxation to level the wealthy money into middle-class and poor programs is good for EVERYONE other than the wealthy....

"The GOP's greatest feat was convincing the world they existed to help the average man"

[crimsonblue]

31. I'm glad to see that the Gov is taking care of a patriotic company...

It is ridiculous that these companies are allowed to do this, but yet the IRS is going after churches and individuals owing less than $10,000. The people that owe back taxes should pay them, but EVERYONE should be required to pay taxes. It is complete bullshit for a company to get rich off the blood of American soldiers and hundreds of thousands of innocent Iraqis, and then not even have to pay their share. Anybody know of a good country accepting disaffected ex-pats?

[KoKo]

32. Impeach Cheney! Traitor....used influence for former Company and still benefits

from them for Retirement... How much more evidence is needed? :banghead:

[Vinca]

33. Maybe this story will finally shed a little light on the Clinton/Burkle/Cayman story.

Dec. 17 (Bloomberg) -- Former President Bill Clinton's decision to reconsider a business relationship with California billionaire Ron Burkle reflects concern those financial dealings may embarrass his wife's presidential candidacy.

Securities and Exchange Commission documents and financial- disclosure forms filed by Hillary Clinton show that Bill Clinton, 61, has a financial stake in three investment entities registered in the Cayman Islands by Burkle's Yucaipa Cos. LLC.

In 2004, Hillary Clinton, a New York senator, said she wanted to close the ``loopholes'' for ``people who create a mailbox, or a drop, or send one person to sit on the beach in some island paradise and claim that it is their offshore headquarters.''

http://www.bloomberg.com/apps/news?pid=20601070&sid=aGwhTXxfCSHo&refer=home

Amusing - Hillary wants to close the loopholes, Bill is taking advantage of them.

[LeftHander]

34. But we are all safer....no terrorists at Target thanks to KBR....

:>/

[JDPriestly]

35. The government does not collect Social Security taxes from

its own defense contractors and then tells the seniors it cannot afford to pay for Social Security benefits. I wonder how many other defense contractors and other government contractors are doing this. The workers who make the tanks the government is buying in Europe also will not be paying into our Social Security system. Let all those rightie seniors know about this, and Democrats will have a landslide in November.

[libodem]

38. Is anyone surprised?

The tax haters are in charge of this country. This Administration doesn't believe that government needs taxes to operate. They believe in borrowing and smoke and mirrors. Our whole country will be bankrupt before they are through with us. Cheneybush's job is to fulfill his contract with Osama Bin Ladin, to break the backs of the fancy, rich, stuck-up, middle class of Americans. Neither will be happy until we are enslaved in poverty. Why do they hate America?

[Ghost Dog]

41. See the Tax Justice Network for much information on this subject:

http://www.taxjustice.net/cms/front_content.php?idcatart=134