Recent Law Has Impacted Contractor Use of Offshore Subsidiaries to Avoid Certain Payroll Taxes

January 2010
GAO Reports;1/26/2010, preceding p1
Government Document
The article presents a report from the U.S. Government Accountability Office (GAO) on the impact of Heroes Earnings Assistance and Relief Tax (HEART) Act on the federal contractor's use of offshore subsidiaries to avoid certain tax liabilities. As stated the report explores the trends and purposes for contractors' offshore subsidiaries and identifies how contractors use subsidiaries to support defense contracts. Recommendations from GAO are also discussed.


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