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Iraq Contractor KBR Has Dodged $500 Million in U.S. taxes March 10, 2008

Posted by Aaron Walter in Uncategorized.
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Kellogg Brown & Root (KBR) sure is a piece of work.  Lets recap a week or so of posts concerning KBR.

 1. KBR has been passing along to the American taxpayer, AIG’s inflated premiums for Defense Base Act coverage, so that KBR (and other contractors in Iraq and Afghanistan) could be insulated from liability for injuries to its employees.

2. KBR is presently being sued in Federal Court for allegedly intentionally causing the deaths of six KBR truck drivers in 2004.

3. Now we discover that the 10,000+ Americans working for KBR, were really working for a Caribean company, not an American one, saving KBR as much as $100 million a year in U.S. Medicare and Social Security Taxes. By claiming its own employees, many of which were hired in Texas and shipped directly to Iraq from there, to be employees of the Cayman Islands corporation Service Employers International Inc, KBR also avoids having to pay for unemployment insurance. That means KBR employees coming home from Iraq are ineligible to recieve unemployment. I bet that wasn’t part of the orientation movie. I also bet it wasn’t part of the pitch to the Department of Defense before they were granted a no-bid contract for work in Iraq.

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1. The Defense Base Act does not apply to KBR? Be careful what you wish for « The Defense Base Act Blog - September 15, 2008

[…] has recently come to light that KBR was running a bit a tax scam on the United States. Some surmise that this means KBR is admitting they are not a US Corporation […]

2. jana - January 23, 2009

NEW RELEASE! 1/22/09

Soldier Electrocution Is Negligent Homicide by KBR

By Kimberly Hefling, Associated Press Writer, 01/22/2009

WASHINGTON – An Army investigation calls the electrocution death of a U.S. soldier in Iraq “negligent homicide” caused by military contractor KBR Inc. and two of its supervisors.

In a document obtained by The Associated Press, an Army criminal investigator says the manner of death for Staff Sgt. Ryan Maseth, 24, has been changed from accidental to negligent homicide because the contractor failed to ensure that “qualified electricians and plumbers” worked on the barracks where Maseth died.

The Green Beret from Pittsburgh died of cardiac arrest on Jan. 2, 2008. He was electrocuted while taking a shower in his barracks in Baghdad.

A spokesman for Houston-based KBR was not immediately available for comment.

3. jana - January 23, 2009

When working with the Iraq Oversight Committee last year, I was talking to several republican in a conference, what I had to explain to them is how KBR employees are just that. One kept refering to them as Independant contractors and so I quoted the IRS Test on Independant contractor vs employee, the just, all KBR hires file a W2 not a 1099.

Also last year when dealing with the United States Tax court I was able to help a contractor who was being Taxed over $10,000 due to he didn’t meet his time requirements. Win in the United Tax courts and I have the records to prove it. I had to explain to the IRS when they called where I got Form 2555 (Time Waiver of Requirements) I told them Off their website! LOL So the united states tax courts saw it my way and so the poor injured contractor didn’t have to pay his taxes! Still he awaits medical treatment!

4. jana - January 23, 2009

Also stayed tuned, all he double hockey sticks is about to break loose!


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