From American Progress:
IRAQ -- ANOTHER CONTRACTOR AVOIDING TAXES THROUGH OFF-SHORE HAVENS:
The Boston Globe reported yesterday that a Pentagon contractor responsible for training Iraqi police has established shell companies in Bermuda and the Caymen Islands in the appearance of avoiding payment of millions of dollars in taxes and evading scrutiny from the IRS.
Tax experts say the company -- Virginia-based MPRI -- appears to be avoiding "the payment of roughly $4 million dollars a year in Social Security and Medicare taxes." Last March, the Globe reported that KBR -- one of the top profiteers of the Iraq war, already with a dismal record -- has also avoided paying more than $500 million in "Medicare and Social Security taxes by hiring its workers through shell companies" based in the Caymen Islands.
Bunnatine "Bunny" Greenhouse, who oversaw contracts for the Army Corps of Engineers, told the Senate in 2005 that the Pentagon's relationship with KBR represented the "most blatant and improper contract abuse I have witnessed during the course of my professional career."