KBR, the former Halliburton subsidiary that specializes in global military contracting, has hired several high-profile Capitol Hill firms for foreign relations help in a bid to resolve an ongoing tax dispute with the Afghani government.
Houston-based KBR, which was the largest contractor in Iraq and remains one of the top recipients of Pentagon contracts abroad, has hired Akin Gump Strauss Hauer & Feld as well as Kasowitz, Benson, Torres & Friedman for the purpose of “resolving issue(sic) of improper taxation by the Government of Afghanistan,” according to lobbying registration documents filed in May.
Many contractors operating in Afghanistan have allegedly been engaged in an ongoing series of tax disputes with that country’s Ministry of Finance for several years. Global development news site Devex reported in May that KBR has now left Afghanistan “in part because of concerns about the tax issue.” Devex also reported that U.S. officials and contractor representatives in March met with Afghanistan’s Minister of Finance Eklil Hakimi at the Afghanistan embassy in Washington, D.C. to discuss the matter.
KBR, which built the U.S. embassy in Kabul (allegedly for a U.S. State Department contract valued at $100 million) and also established base camps in Kandahar and at Bagram Air Base, made headlines in 2008 when it was reported that the company allegedly avoided paying hundreds of millions in Medicare and Social Security taxes by declaring many of its American workers employees of shell companies it had established in the Cayman Islands, companies that existed only on a computer file.
In 2014, the Justice Department sued KBR for kickbacks and false claims related to contracts in Iraq, stating the company allegedly “claimed reimbursement from the government for costs it incurred under the subcontracts that allegedly were inflated, excessive or for goods and services that were grossly deficient or not provided.”
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