Blackwater accused of tax evasion.
In a letter to Blackwater CEO Erik Prince today, Rep. Henry Waxman (D-CA) says he has obtained documents “which suggest that Blackwater may have engaged in significant tax evasion” by labeling their armed guards “independent contractors.” Due to the label, “Blackwater may have avoided paying millions of dollars in Social Security, Medicare, unemployment, and related taxes for which it is legally responsible,” writes Waxman. DynCorp and Triple Canopy, “the two other major private military contractors providing security services to the State Department in Iraq,” classify their guards as “employees.”
Read the whole letter here.
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Ruh-roh, Raggy…
That’s what they finally got Al Capone on. Fitting.
October 22nd, 2007 at 11:47 amHow come I just know that its not the killing of innocent civilians that will bring Blackwater down, its going to be taxes.
How Al Capone-ish….
October 22nd, 2007 at 11:47 amSo then each indebendent contractor had to pay something like 14% SS taxes instead of 7%. And Blackwater wasn’t paying for workman’s compensation or medical insurance. And when these guys come back and are unemployed their last employer, gets stuck with their unemployment liability which has gone up something like 300% under Bush.
October 22nd, 2007 at 11:50 amHey you guys be fair. Al Capone would never have shot innocent women and children.
October 22nd, 2007 at 11:50 amTaxes?! Why did you have to remind me? Ugh.
More illegal practices? I’m shocked! /sarcasm
October 22nd, 2007 at 11:52 amWaxman might also look into Blackwater’s employees (or contractors) payment of US federal income tax.
Although many assume otherwise, US citizens, regardless of who you work for, and regardless of where in the world you live, MUST pay US income tax annually on any earned income. If you mine diamonds for a South African company in Russia and you live in Russia but you are a US citizen, you must pay US income tax.
If you are an expatriate that lives and works in Cuba, but still have US citizenship, you must pay income tax.
If you are an “independent contractor” for the Kuwaiti firms that support Blackwater, but are a US citizen, you must pay income tax.
October 22nd, 2007 at 11:54 amSomeone getting no bid contracts from the GW666 administration doing something illegal? My goodness, who would have thought?
They are repukians and they don’t have to pay taxes like the rest of us, that is why they are the 25%ers, they’re special.
These are the FAMILY VALUES party and they certainly would not do anything wrong or illegal, would they?
Buck Fush
October 22nd, 2007 at 11:57 amNo Corporation that uses off shore headquarters to evade taxes should get any type of government work or contracts.
New Rules:
-Wrap your corporation in the flag to ensure government support.
-Move headquarters offshore while proclaiming your patriotism.
-Outsource mfg. & labor to improve your profit margin.
-Never agree to testify under oath.
-When testifying, lie your ass off anyway.
-Kill anyone who disagrees with you.
Join Blackwater. See the World. Go to exotic places and meet new people. Then kill them.
October 22nd, 2007 at 11:58 amLeona Helmsley is tittering in her Hell-cell.
October 22nd, 2007 at 11:59 amNo one expects a company like this to pay their fair share do they?
Blackwater, killing innocents, avoiding taxes. Because we can.
-GSD
October 22nd, 2007 at 11:59 amOk now which is it ? First Prince says he is following military orders, then it is no, we are sub-contractors. However, sub-contractors means working on your own time schedule not punching the clock. Wouldn’t it be wonderful to get him on tax evasion. Other companies have to meet payroll taxes.
October 22nd, 2007 at 12:02 pmim sure that will get enforced….. sleepy time.
October 22nd, 2007 at 12:03 pmAll Blackwater has to do is abandon their plan to move to southern California and move to Dubai instead…
October 22nd, 2007 at 12:15 pmUh, Oh, Blackwater, you have done it now. Expect a nasty letter from the Democratic Leadership any day now. =P
October 22nd, 2007 at 12:16 pmThat’s an idea! The next time I freelance, I’ll have the client list me as ‘mercenary.’
October 22nd, 2007 at 12:16 pmAl Capone would never have shot innocent women and children.
I wouldn’t say never ~ but he would have known the difference.
October 22nd, 2007 at 12:19 pmWhy does Waxman hate our (rogue) army?
sarcasm/off
October 22nd, 2007 at 12:22 pmYay! Something that will stick. The Democrats can write all the letters they want. Bush can poh pooh all day long and it won’t help. This is beyond the Democrats and President.
If this si true, the IRS WILL get their money and maybe send some people to jail. The IRS doesn’t fu*k around. Period.
October 22nd, 2007 at 12:31 pmYes…but Blackwater has a nice, new logo with a friendlier bear paw. And they got rid of that crosshair action that made their old logo so sinister. They must be turning over a new leaf.
October 22nd, 2007 at 12:40 pmI wonder how he classifies his “independent contractors” that he has recruited from places like Chile, the Balkans etc..
October 22nd, 2007 at 12:41 pmWhy is it that these Christofascists have so much trouble obeying the law?
October 22nd, 2007 at 12:50 pmAll Blackwater has to do is abandon their plan to move to southern California and move to Dubai instead…
Comment by missmolly — October 22, 2007 @ 12:15 pm
And Darth would love to share his Executive Suite at Halliburton’s new HQ in Dubai with the Prince of Darkness and Ms. Prince can sell Amway in the ME, for her brother.
October 22nd, 2007 at 12:56 pmGet ‘em for tax evasion. It worked to put another murder behind bars …. Al Capone
October 22nd, 2007 at 1:00 pmWell, in this world the life of a human being is worth less than money. So, avoiding taxes is the ultimate crime, of course.
October 22nd, 2007 at 1:36 pmhee hee hee hee
This makes me happy. Something that might actually wipe the smirk off Erik’s face!
Easily amused? OK, maybe I am…
October 22nd, 2007 at 2:36 pmIt’s onlt tax evasion if you are not in the top tier. If you are, it’s tax aversion
October 22nd, 2007 at 4:46 pm.†Due to the label, “Blackwater may have avoided paying millions of dollars in Social Security, Medicare, unemployment, and related taxes for which it is legally responsible,â€
Lovely.You tell me who really hates America ? Repukes are scum.
October 22nd, 2007 at 4:47 pm#20 — Squidbilly,
They’re guest workers! ::: you knew that! :::
October 22nd, 2007 at 5:09 pmI happen to be a tax lawyer..
If a US citizen works for a foreign company, the citizen is not subject to US social security tax unless the foreign employer is an affiliate of the US company, and there is a voluntary agreement between the foreign affiliate and the US Treasury.
If the US citizens work directly for a US company - then they are still subject to US social security taxes.
So - If you work for Coke Atlanta for esxample - you have both income and ss taxes.
If you work for Coke Venezuela - no US social security tax unless done voluntarily by the company.
http://www.irs.gov/ businesses/ small/ international/ article/ 0,,id=97160,00.html
Apply this to Blackwater - did the employees work for the US company, or the Kuwaiti sub?
It is clear under US tax law that they would be employees for US tax purposes, not independent contractors.
October 22nd, 2007 at 5:25 pmBlackwater is saying they are a small business and what they did is perfectly legal — yeah, like 9 billion in 6 years and a few hundred thousand employees qualifies as a small business.
And I would not quarrel with the tax lawyer at # 29 either.
October 22nd, 2007 at 11:46 pm