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United Airlines accused of having sham office to dodge taxes
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Rick Leventhal reports on lawsuit
- Duration 2:12
- Date Jan 14, 2013
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Transcript
This transcript is automatically generated
Off the New Orleans United Airlines accused of running a sham office to avoid paying millions of dollars in taxes to the city of Chicago what's the airlines say about that.
Rick Leventhal here to explain American morning -- morning -- also what's up.
It is kind of strange to me we've all heard about and individuals and corporations Beijing offices and accounts offshore overseas.
To avoid paying taxes in this gates is that it's a dispute over the 69 miles between Chicago and sycamore Illinois.
According to Chicago's regional transportation authority United Airlines has been operating a sham office for the past twelve years to avoid paying a fortune in taxes.
The airline buys hundreds of millions of dollars worth of fuel for its jets at O'Hare airport every year but instead -- paying taxes to Chicago and Cook County where O'Hair is based.
United aviation fuels corporate subsidiary of the airline opened a small office in sycamore -- no computer and just one part time employee.
Then struck a kickback deal with the town paying a few hundred grand.
Instead of tens of millions according to the draft of the lawsuit obtained by the Associated Press quote the only reason.
The united -- -- an office in sycamore is to attempt to create a sham tax location for fuel sales and a lower taxing jurisdiction.
In -- statement United Airlines says quote we have not received a copy of the complaint but we believe that any such -- would be without merit.
In fact the operation of our fuel consider subsidiary in sycamore has been examined by tax authorities in the past.
And has been determined to apply to comply with all applicable laws.
We will vigorously defend ourselves against any such claims in most states bill sales taxes are collected where product to receive but under Illinois law.
They should be -- -- the purchase is accepted.
Which united argues is that office and sycamore and so you have the united here that there's also accusations against American Airlines was happening there -- American has a similar office in sycamore City Hall has also allegedly -- millions up its tax bill but because America is currently in bankruptcy.
It would require litigating in this case in federal bankruptcy court in New York as well as Cook County.
The RTA says it will pursue legal action against American when it's out of bankruptcy.
In about a year by the -- the lawsuit against united was filed this morning bill -- Campbell watched that thank you Rick Rick Leventhal is on the story here in New York Martha.
