Reply #13: Lawmaker accuses Blackwater of tax evasion [View All]

Source: Reuters

WASHINGTON (Reuters) - Private security contractor Blackwater USA "engaged in significant tax evasion," a U.S. congressman said on Monday as the company faced scrutiny over the killing of Iraqi civilians.

Rep. Henry Waxman, chairman of the U.S. House of Representatives Oversight and Government Reform Committee, accused Blackwater of "failing to withhold and pay millions of dollars in Social Security, Medicare, unemployment and related taxes."

The California Democrat said the firm "sought to conceal its conduct from Congress and law enforcement officials."

Blackwater spokeswoman Anne Tyrrell said in an e-mail that Waxman argues Blackwater cannot treat its personnel in Iraq and Afghanistan as independent contractors and contends they must be treated as employees for IRS purposes.

"The chairman's contention is incorrect," Tyrrell said.

Read more: http://www.reuters.com/article/politicsNews/idUSN2245858720071023?sp=true

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hmmm.... wasn't tax evasion what they finally got Al Capone on?