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Blackwater Accused of Tax Evasion

Rep Henry Waxman, D-CA, chair of the House oversight committee, asserted Blackwater USA may have violated US tax laws and possibly defrauded the federal government of millions of dollars. Waxman is leading the congressional investigations into Blackwater, the US security company that has come under fire recently for its guards’ actions in Iraq, most notably a September shooting that killed 17 Iraqi civilians.

According to Waxman, Blackwater may have avoided paying an estimated $31 million to the federal government in employment related taxes by classifying employees as “independent contractors” rather than employees, reports CNN. Waxman is asking for documents from Blackwater by November 19. Blackwater has denied the allegations.

Sources:

CNN 10/24/07; MSNBC.com 10/23/07; Associated Press 10/22/07; Truthout.org