"Sham" Location?
- United Airlines Inc. (UAL) used a “sham” site outside Chicago to avoid paying the full tax on jet fuel, the Illinois Regional Transportation Authority said in a lawsuit.
The airline’s United Aviation Fuels Corp. unit, which purchases jet fuel for United and its regional carriers, used an office in Sycamore, Illinois, that has no true sales activity, the agency said in the complaint filed yesterday in state court in Chicago. The office has one staff member, who doesn’t work daily and doesn’t have a computer, according to the complaint.
“The only reason that United Fuels has an office in Sycamore is to attempt to create a sham tax situs for fuel sales in a lower taxing jurisdiction,” the authority said. “The sales of jet fuel in this complaint are occurring in Chicago, not Sycamore.”
And as a sharp eyed (and sharp tongued) commentator noted:
- So United Airlines and another airline opened offices in a rural part of Illinois.
They threw an old desk and chair and some papers inside the offices and then claim that's where they negotiate fuel purchases from.
Which by the way cheats Cook County and Chicago out of millions of dollars in taxes on said fuel purchases.
Funny thing is no-one has seen anyone in the office or coming and going to it.
Heh, whoever heard of such a thing?
Putting a old bag of crap in a building just to pretend like you're living or working there?
That's silly.
Now that is comedy brilliance there.
Labels: city politics
posted by SCC at 12:01 AM
36 Comments:
Come on - do you REALLY think that United Airlines is the only company that did this in order to avoid taxes?
Politicians better wake up and figure that when they make a real bonehead move, companies and their creative accountants are going to find out ways to get around the high tax.
A couple percent on Millions of dollars is enough for a company to go out and get an office set up in Podunk, IL - or Podunk, WI for that matter.
Lower the tax back to a normal level and maybe companies will start paying it. In the meantime, cut some of the bloat out of the budget so you don't need as much money.
Next case.
That's awesome
I applaud the airlines for looking out for the interests of the company and not paying the corruption tax of a pack of criminals elected by a community of criminals.
But Rahm said it was OK when he asked us to move to Willis Tower.....
That's fantastic stealing from the criminals that rob them
How dare a multi billion dollar, for profit corporation try and cheat another multi billion dollar, shithole, waste of tax payer money out of money they don't even deserve.
Hey Rahm, remember when you ran for mayor and you c
"Claimed" your residence was a house you rented out while you we're actually living in Washington D.C. to tea bag Obama. Well, what comes around goes around. Not only are you giving them million dollar tax breaks and TIF money but now you are getting stiffed on more tax dollars on top of it. How's it feel to be swindled? Hahahahaha you too PrickWrinkle
To quote Precwinkle (sp?) when she proposed a $25 tax on hangun purchases and was told people would just buy their guns elsewhere:
I'm astonished
so the employee didnt have a computer - did all the business by phone.
didnt need to work every day - the needs of the business were such that he got everything done in less time.
businesses can locate where ever they choose (well, zoning applies...), so if they chose to locate elsewhere, that's a business decision.
if cook county/chicago don't like it - that's unfortunate, but ot the responsibility of the business.
maybe when the dumbocrats stop engaging in a cranial rectal inversion, they'll understand that high tax rates and fees are a deterrent and actually LOWER revenue...... or maybe not, they are dumbocrats after all...
just wait until they move out of the State... won't that be tits?
Budget shortfalls everywhere. City,County,State.
Oh we have no money. We must cut these pensions and healthcare.
Meanwhile the politicians boast about creating "Jay-OH-BEEs" says the Governor using his third grade lingo. Then there's this:
IllinoisFail: 12-18 month delay to process medical licenses
CHICAGO -- The Illinois government agency that looks into complaints against doctors announced it will lay off investigators starting Tuesday and warned of yearlong delays in physician licensing because the Legislature didn't act to bail out the medical watchdog unit.
In a letter being sent to doctors Thursday, officials from Illinois Department of Financial and Professional Regulation pin the blame on the Illinois State Medical Society for lobbying against legislation to transfer $9.6 million to keep the program going. The Associated Press obtained a copy of the letter on Wednesday.
The letter details "calamitous consequences," including "delays between 12 and 18 months to process a medical license and severe constraints to the Department's ability to prosecute physicians who pose a risk to the health and safety of Illinois citizens."
The letter is signed by department Director Jay Stewart and Acting Secretary Manuel Flores. "As a direct result of (the medical society's) actions, the layoffs will occur," the letter says...
http://www.sj-r.com/top-stories/x1665859799/Layoffs-loom-for-doctor-watchdogs
Well who the hell needs doctors right?
So what if it takes you a year and a half to get a license to practice medicine in Illinois. We don't need those jobs.
It's not like we have a shortage of them to treat the GSW victims in Chicago, right?
Not like we could use the tax revenue and the well paying jobs of doctors assistants and nurses and technicians that would go along with the new doctors, right?
Hell naw.
This budget crisis is a self manufactured crisis. The people running the show are dragging their feet on revenue generating casino's and now they are dragging their feet and creating a mess out of the state medical licensing department and this time it's costing us money and LIVES.
Jackazzes!
No, no, no let's shuffle more jobs around from the burbs to the city with tax incentives and call them "new jobs" when in reality they are job relocation's that are creating limited if any opportunities for the unemployed.
Get it?
Well they gave United what..$56 million dollars in incentives to move downtown? Then bragged that the city didn't have to offer any TIF money.
We're all suppose to be looking at that and the "new jobs" that are mostly job moves and shout Yaaay World-Class City.
Lower the tax back to a normal level and maybe companies will start paying it. In the meantime, cut some of the bloat out of the budget so you don't need as much money.
Next case.
1/16/2013 12:23:00 AM
======================================
When Illinois put in the smoking ban for Illinois Casino's the Casino's revenues dropped by 20% as their customers fled to other states to gamble.
Ain't nothing like creating a self-inflicted crisis that you can use later (to cut entitlements), ride in on the white horse and save everyone.
My business I do as I please, RTA geek crying out about. Apple does it they have a tiny office in Arizona to save on taxes
They get their rental property from the Vanecko's?
Anonymous said...
Well they gave United what..$56 million dollars in incentives to move downtown? Then bragged that the city didn't have to offer any TIF money.
We're all suppose to be looking at that and the "new jobs" that are mostly job moves and shout Yaaay World-Class City.
1/16/2013 04:40:00 AM
If you research it, million$ of TIF dollars were given to Willis Towers (without them even asking for it). I'm sure some of THOSE fund$ made their way up the elevators and were secretly earmarked for UAL, dontcha think?
The "sham" location is a tactic that has been utilized by big business forever, as a means of avoiding taxes in the U.S. Many of America's largest corporations that perform virtually all of their business here at home, list their corporate headquarters at sham offices in other countries, thus 'defrauding' our government. But, as UAL has claimed, it IS legal...
The Tax Justice Network in its 2012 report said global tax revenue lost to tax havens is between USD $190 billion and $255 billion per year, assuming a 3% capital gains rate and a 30% capital gains tax rate.
http://en.wikipedia.org/wiki/Tax_haven
Also:
Which Fortune 500 Companies Are Sheltering Income in Overseas Tax Havens?
October 17, 2012 10:28 AM |
Ten Corporations Admit Paying Little Tax on Offshore Income; More Likely Do the Same
http://ctj.org/ctjreports/2012/10/which_fortune_500_companies_are_sheltering_income_in_overseas_tax_havens.php#.UN0EtjnjC8M.twitter
Do you think it's an accident that the law is worded the way it is? Do you think United and the others will win? Will Rahm, Toni and Gov. Potato-Head piss and moan for a while until it dies down? If you answered yes to these questions, you've seen this movie before. Don't try and get a refund.
This and many other tax dodges are well known at the airport. Cost the city&state lots of money.
Some CPD guys ,both active and retired mmentioned this, but they were shut down.
Seems the Commisioneer loves her upgrade perks and dinners, so everyone has took keep quiet or else Rhams little minions will take care of them
I would love to write more, but I have to go to ethics training again!
Someone look into how all these recent fees and add-on charges are taxed, compare that to the actual fare amount tax rates. I believe they are taxed at different rates, so it clearly behooves them to lower the fares and raise the fees = more money. Again, someone keep me honest here.
Didn't the RTA have electric trains and busses at one time?? Then the RTA got rid of them all in the 1950s.
They wouldn't be complaining about fuel costs had they not been morons and get rid of their electric lines.
Idiots!!!
They have done what, many others have done and will do,just like the elected who skirt many laws big and little business do the same ! How about for a small example all the illegal carts selling rotten corn soaked in dirty water why is that overlooked rahm? Simple really because they are not taxpayers to. Be gouged! Why is revenue swooping down westend of 8-22-16? I know the racist angle,but hey know we are forced to pay our bills to give more to the people who do nothing but. Take "our money!" The demoratic way!
Sounds a lot like me. I purchase all my gasoline at stations located outside of the city, purchase my groceries at stores located outside the city, etc. etc. etc. The only thing interesting about this is that the city didn't know it was happening. Good bye Chicago, your pandering to the savage is slowly destroying you.
Hey United! I've got a shed on my Wisconsin property you can use for your corporate HQ. I'll rent it to you for 1.00 USC per year just to fuck with Ehalfamanuel. This is a bonafide offer.
P.S. I found an old Commodore 64 I can toss in if you need it.
If it works for Rahm then it should work for them and all of us.
Rahm would never misrepresent things would he?
My clients at Branch 38 get pinched for selling cigarettes without tax stamps. When the airlines do it, you coppers call it "good business practice. "
Commodore 64's kicked ASS!!!!
Now, kees me you fool!!!!
Anonymous said...
This and many other tax dodges are well known at the airport. Cost the city&state lots of money.
Some CPD guys ,both active and retired mmentioned this, but they were shut down.
Seems the Commisioneer loves her upgrade perks and dinners, so everyone has took keep quiet or else Rhams little minions will take care of them
I would love to write more, but I have to go to ethics training again!
1/16/2013 10:27:00 AM
Are you talking about airport commissioner who kept her mouth shut as a secretary at city hall? That 1?
This happens a lot. There is a group of suburban lawyers who have made a cottage industry of regularly suing, on behalf of villages who got jobbed out of their sales taxes, companies that set up dummy offices in other villages with more favorable taxes. There is a cottage industry of business consultants who advise companies on how to do it and how to get away with it. The lawyers and the consultants are making a lot of money doing this. The villages are losing money on the taxes and/or paying money to their lawyers to pursue and defend these claims. What's wrong with this picture?
Wonderful. The less money the the governments get, the better. Those airlines would far more good with their money than Ali Rahma and the Fifty Thieves could do.
Follow the money...been going on for years. And it will never end.
BTW-anyone see that article-they still looking for Hoffa? WTF-what a waste of money. Yeah these governments real broke. Money for parks and BS, but bills and pensions? Nahhhhhhhh
Good idea, I have a business in rented space in the city. I will switch my corporate headquarters to Sycamore, IL and fuck whoever I can on taxes. It is basically an internet reselling business. I buy things from out of state and sell them to consumers who pay only for the cost of this "service." Said service is not taxed. Even if they raid my corporate offices they will only find my CEO, Mr. Joseph Bagadonuts. I buy and resell within the state also. I pay no tax and I charge no tax on my service. That gives me a 9% edge off the top for my clients, most of whom live and work in Cook County.
The more the volume, the more the profit. I hope Toni Prenkwinkle isn't astonished. Mr profit is whatever I can fleece the City, County and State out of. Works for me.
Rahm and Sandi Jackson have had a Chicago address while they spent all their time in D.C.
One earlier, the other presently.
Anonymous said...
My clients at Branch 38 get pinched for selling cigarettes without tax stamps. When the airlines do it, you coppers call it "good business practice. "
1/16/2013 03:01:00 PM
And then counselor, you defend these Chicago mopes for an inflated fee so you can live in a safer area...outside of Chicago.
"good business practice."
Now get off our blog you ambulance chaser, slip and fall, troll.
Vanecko Fuel & Transport Inc.....
My clients at Branch 38 get pinched for selling cigarettes without tax stamps. When the airlines do it, you coppers call it "good business practice. "
You're in the wrong business, counselor. You need to be a high-priced corporate attorney.
Vanecko Fuel & Transport Inc.....
That's WHY they're mad-Vanecko DOESN'T have a piece of the action.
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