• Delicious




Accenture May Lose Out In US Offshore Tax Debate

by Mike Godfrey, Tax-News.com, Washington

14 June 2004

A US House of Representatives Committee passed a measure last week that would block consulting firm Accenture from winning a $10 billion homeland security contract because it is headquartered offshore.

The House Appropriations Committee voted 35-17 last Wednesday to modify the Department of Homeland Security’s $32 billion budget in order to prevent the Bermuda-based company from taking up the contract, on the grounds that it would not be paying its fair share of US taxes.

The firm, formerly known as Andersen Consulting, beat competition from Computer Sciences Corp and Lockheed Martin Corp for the contract to administer the US Visitor and Immigrant Status Indicator Technology (US VISIT) program.

The bill’s sponsor Rep. Rosa DeLauro, a Connecticut Democrat argued that: "It is simply wrong for Homeland Security to award an expatriate with the largest corporate contract to date."

“We have two competitors who are paying their taxes in the US," she added.

However, the bill still has some way to go before becoming law, and must face a full House and Senate vote before it can be signed by President Bush.

.

 

 






Write a comment