Cayman Islands Subsidiary Allows Pentagon Contractor Assisting War In Iraq To Avoid Millions In Taxes»

The Boston Globe recently revealed that two Defense Department contractors operating in Iraq — KBR and MPRI — have avoided paying hundreds of millions of dollars in federal Social Security and Medicare taxes by hiring its employees through “shell companies” based in Bermuda and the Cayman Islands. Today, the AP reveals a third contractor assisting the U.S. military’s mission in Iraq that is also dodging Social Security and Medicare taxes.