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Last updated 12:09AM ET
March 2, 2021
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Blackwater May Have Committed Tax Fraud
(2007-10-22)
(wgvu) - WASHINGTON (AP) - A House committee chair says Blackwater USA
may have defrauded the government of millions of dollars.
Rep. Henry Waxman has released a letter stating Blackwater's
classification of a security guard as an independent contractor was
"without merit."
Companies are required to pay Social Security and other federal
taxes on their employees. Blackwater says the guards it trains,
equips and deploys to Iraq and elsewhere are independent
contractors hired directly by the federal government.
Waxman says in a letter to Holland, Mich.-native and Blackwater
chief Erik Prince that the company has apparently evaded
withholding and paying taxes.
Blackwater is under fire following a shooting that left 17
Iraqis dead.
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