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New twist in stricken rig saga: Shell was moving it to avoid tax

The Independent -- Shell’s ill-fated attempt to tow an offshore oil rig from Alaska to Seattle in the final days of December was motivated by a desire to avoid $7m (£4.3m) of Alaskan state taxes, it emerged today.

But the oil giant will instead suffer a multi-million dollar loss on the exercise after the rig ran aground off the Alaskan coast on Monday night.

The rig was beached during a violent storm on its way to a Seattle shipyard for routine maintenance, in a round-trip timed so that, thanks to an accounting loophole, Shell could avoid an Alaskan state tax.

However, because the rig ran aground late on New Year’s Eve and began 2013 within three miles of the Alaskan coast, Shell remains liable for a unique state property tax on equipment dedicated to oil and gas development and exploration.

Shell ......

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Submitted Jan 06, 2013 By: WalkingWV

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honda0105 Champion Author Tallahassee Posts:18,624 Points:1,609,520 Joined:Nov 2008	Message Posted: Jan 9, 2013 5:56:38 AM Ignore honda0105 Report Abuse amchor: Shell may not have to pay the taxes anyways b/c the Kulluk is such a different 'thing' and thus, is setting precedents.
honda0105 Champion Author Tallahassee Posts:18,624 Points:1,609,520 Joined:Nov 2008	Message Posted: Jan 9, 2013 5:54:57 AM Ignore honda0105 Report Abuse 52mpg: that tax had NOTHING to do w/ the feds and EVERYthing w/ Alaska tax code.
amchornetx Champion Author Twin Cities Posts:88,600 Points:3,411,160 Joined:Oct 2003	Message Posted: Jan 8, 2013 7:50:05 PM Ignore amchornetx Report Abuse Simpler to pay the tax then to do what business does best and not pay their fair share. Now they'll have to pay the tax, penalties other associated charges........good for that.
zuben Rookie Author Texas Posts:5 Points:155,275 Joined:Oct 2012	Message Posted: Jan 8, 2013 12:08:46 PM Ignore zuben Report Abuse In the end the consumer pays. Either our taxes go up or the gas prices go up. Either way we are paying someone.
52MPG Champion Author Dayton Posts:7,267 Points:1,742,680 Joined:Apr 2006	Message Posted: Jan 8, 2013 12:26:37 AM Ignore 52MPG Report Abuse Memo to BO. People will leave rather than pay higher taxes.
NedW Champion Author Indianapolis Posts:5,614 Points:1,142,245 Joined:Mar 2008	Message Posted: Jan 7, 2013 11:53:21 PM Ignore NedW Report Abuse Who can blame them?
rrs517 All-Star Author Colorado Posts:928 Points:344,705 Joined:Apr 2006	Message Posted: Jan 7, 2013 4:21:04 PM Ignore rrs517 Report Abuse So what? If this is due to a loophole, close it. I wouldn't pay any more tax than I needed to either.
WalkingWV Champion Author West Virginia Posts:3,701 Points:779,595 Joined:May 2008	Message Posted: Jan 7, 2013 3:19:25 PM Ignore WalkingWV Report Abuse The old Shell game! lol
dslxcur Champion Author Seattle Posts:1,983 Points:1,525,500 Joined:Sep 2007	Message Posted: Jan 7, 2013 3:38:01 AM Ignore dslxcur Report Abuse Dang! ......................................................... Round And Round She Goes....................................... Now You See It ...................................................... Now You Don't...................................................... Welcome To The Shell Game............................................
tomok Champion Author Portland Posts:33,017 Points:2,345,510 Joined:Aug 2006	Message Posted: Jan 7, 2013 3:25:40 AM Ignore tomok Report Abuse New twist in stricken rig saga: Shell was moving it to avoid tax? This seems like the way big business operates, just like Big Oil selling off fuel inventory before the new year to avoid taxes on the fuel they have on hand. Everything was going on schedule to avoid state taxes until they ran aground! Darn! Whatever the size or shape of the vehicle, vehicle manufactures Produce and the population ‘Drives’ vehicles with high MPG, are very safe, reliable, have a ‘reasonable’ cost and a good ‘value’ for the money. The price of fuel at the pump is too high! XII/XXII/MMXII! - The Day After......
naspa Champion Author Cleveland Posts:1,271 Points:352,150 Joined:Jan 2012	Message Posted: Jan 7, 2013 12:56:08 AM Ignore naspa Report Abuse Shell should pay their fair share. Jerks! I thought they were better than BP.
Zonk Champion Author Michigan Posts:6,486 Points:2,102,990 Joined:Oct 2005	Message Posted: Jan 7, 2013 12:27:07 AM Ignore Zonk Report Abuse Old News. Who wouldn't try to avoid paying a tax?
76chevy Champion Author Toledo Posts:3,992 Points:770,140 Joined:Jun 2010	Message Posted: Jan 7, 2013 12:20:38 AM Ignore 76chevy Report Abuse ...and the obamanation of America continues!
jrschl Champion Author Louisville Posts:2,972 Points:681,740 Joined:Jun 2011	Message Posted: Jan 7, 2013 12:18:51 AM Ignore jrschl Report Abuse They won't suffer anything. You and I will have to pay it.
TheeRedRam Champion Author Hartford Posts:3,168 Points:673,610 Joined:Jun 2011	Message Posted: Jan 7, 2013 12:16:37 AM Ignore TheeRedRam Report Abuse More B.S.
rsox67 All-Star Author Connecticut Posts:707 Points:267,285 Joined:Jul 2012	Message Posted: Jan 7, 2013 12:14:24 AM Ignore rsox67 Report Abuse Ok
nehemiah Champion Author Portland Posts:4,761 Points:930,615 Joined:Jul 2007	Message Posted: Jan 7, 2013 12:09:43 AM Ignore nehemiah Report Abuse of course, taxes make us do so many weird things
10k Champion Author North Carolina Posts:21,259 Points:2,254,995 Joined:May 2006	Message Posted: Jan 7, 2013 12:09:40 AM Ignore 10k Report Abuse Senrac: i agree.. time to tax algore to the max also..
cheaper0ON All-Star Author Ontario Posts:983 Points:398,055 Joined:Jan 2012	Message Posted: Jan 7, 2013 12:09:33 AM Ignore cheaper0ON Report Abuse Okay.
N5EXY Champion Author Austin Posts:5,497 Points:1,510,755 Joined:Jul 2004	Message Posted: Jan 7, 2013 12:09:24 AM Ignore N5EXY Report Abuse So what? I would do the same.
Senrac Champion Author Lincoln Posts:1,594 Points:305,635 Joined:Mar 2010	Message Posted: Jan 7, 2013 12:07:07 AM Ignore Senrac Report Abuse hey if ALGORE can avoid taxes why cant oil companies ???
Blue_Cruzer Champion Author Lexington Posts:7,525 Points:1,670,560 Joined:Mar 2007	Message Posted: Jan 7, 2013 12:07:02 AM Ignore Blue_Cruzer Report Abuse Good, no sympathy from me,for Shell.
jrsva Champion Author Virginia Posts:9,857 Points:1,613,225 Joined:Jan 2006	Message Posted: Jan 7, 2013 12:05:39 AM Ignore jrsva Report Abuse Lots of places tax based on what you own at the transition between years.When I was in business and buying stock toward the end of the year, I tried to have it shipped on 31 December (so the manufacturer no longer owned it) and delivered in January so I didn’t own it either.
Ferdman17 Champion Author Albany Posts:1,288 Points:374,535 Joined:Feb 2012	Message Posted: Jan 7, 2013 12:04:38 AM Ignore Ferdman17 Report Abuse Let them pay.
5Golfer8 Champion Author Tucson Posts:2,143 Points:301,625 Joined:Jun 2011	Message Posted: Jan 7, 2013 12:04:20 AM Ignore 5Golfer8 Report Abuse Oh Well!
gasmack Champion Author Ventura Posts:1,711 Points:668,395 Joined:Feb 2011	Message Posted: Jan 7, 2013 12:03:08 AM Ignore gasmack Report Abuse Another example of God does not like ugly.
NAVYHM All-Star Author Cleveland Posts:761 Points:1,386,455 Joined:May 2008	Message Posted: Jan 6, 2013 11:59:59 PM Ignore NAVYHM Report Abuse OK...
HA4CNN Champion Author Toronto Posts:5,624 Points:1,543,390 Joined:Dec 2006	Message Posted: Jan 6, 2013 11:59:03 PM Ignore HA4CNN Report Abuse Looks good on them but how much will the public have to pay in increased prices.
wayoung56 Champion Author Alabama Posts:2,805 Points:819,310 Joined:Oct 2006	Message Posted: Jan 6, 2013 11:57:26 PM Ignore wayoung56 Report Abuse Hmmm...
BREW9 All-Star Author Tampa Posts:886 Points:2,912,930 Joined:Jun 2004	Message Posted: Jan 6, 2013 11:54:33 PM Ignore BREW9 Report Abuse ok
SavALot Champion Author Virginia Beach Posts:8,474 Points:1,711,835 Joined:Apr 2005	Message Posted: Jan 6, 2013 11:53:32 PM Ignore SavALot Report Abuse Avoid the taxes!
mstearno Champion Author Dayton Posts:8,071 Points:1,732,210 Joined:Jan 2008	Message Posted: Jan 6, 2013 11:49:36 PM Ignore mstearno Report Abuse traitor??? What is gore?? Selling to avoid tax....
cwashi3324 Champion Author Cincinnati Posts:2,802 Points:573,290 Joined:May 2009	Message Posted: Jan 6, 2013 11:48:46 PM Ignore cwashi3324 Report Abuse You traitor!
DatThao All-Star Author Wilmington Posts:722 Points:140,765 Joined:Oct 2012	Message Posted: Jan 6, 2013 11:44:38 PM Ignore DatThao Report Abuse Another loophole case.
bbigred Veteran Author Lansing Posts:427 Points:297,950 Joined:May 2006	Message Posted: Jan 6, 2013 11:44:28 PM Ignore bbigred Report Abuse big oil will spend millions trying to save a buck
ldiggy All-Star Author Wilmington Posts:778 Points:288,885 Joined:Apr 2012	Message Posted: Jan 6, 2013 11:40:47 PM Ignore ldiggy Report Abuse Sounds like they're getting what they deserve.
seahawks Champion Author Washington Posts:3,232 Points:1,964,720 Joined:Sep 2005	Message Posted: Jan 6, 2013 11:38:35 PM Ignore seahawks Report Abuse interesting!!!
HawaiianGuy Champion Author Idaho Posts:9,528 Points:3,079,700 Joined:May 2003	Message Posted: Jan 6, 2013 11:36:22 PM Ignore HawaiianGuy Report Abuse Bwah-HA-HA-HAAAA!
RussianAnya All-Star Author Dallas Posts:646 Points:133,850 Joined:Jan 2013	Message Posted: Jan 6, 2013 11:33:05 PM Ignore RussianAnya Report Abuse whoo
lesndave Champion Author Texas Posts:3,042 Points:701,380 Joined:May 2011	Message Posted: Jan 6, 2013 11:32:23 PM Ignore lesndave Report Abuse Whoops
TheSnowstorm Champion Author Montreal Posts:8,624 Points:1,914,005 Joined:June 2005	Message Posted: Jan 6, 2013 11:23:26 PM Ignore TheSnowstorm Report Abuse Oops...
Spankster85 Champion Author Chicago Posts:1,729 Points:357,065 Joined:Nov 2011	Message Posted: Jan 6, 2013 11:21:33 PM Ignore Spankster85 Report Abuse Well that worked out well...
rawdog1313 Champion Author Lexington Posts:3,304 Points:1,643,780 Joined:May 2008	Message Posted: Jan 6, 2013 11:19:17 PM Ignore rawdog1313 Report Abuse Good.........
vrossi46 Champion Author San Jose Posts:2,677 Points:805,895 Joined:Oct 2008	Message Posted: Jan 6, 2013 11:18:35 PM Ignore vrossi46 Report Abuse don't be fooled, we end up paying for stupid mistakes like this
LoadToad Champion Author San Diego Posts:1,364 Points:1,298,045 Joined:Sep 2005	Message Posted: Jan 6, 2013 11:14:31 PM Ignore LoadToad Report Abuse ????
jbrad4 All-Star Author Dallas Posts:801 Points:477,170 Joined:Nov 2010	Message Posted: Jan 6, 2013 11:10:03 PM Ignore jbrad4 Report Abuse Sounds like karma is at work here. Serves Shell right, for what happened.
scubadaniel Champion Author Dayton Posts:1,421 Points:692,070 Joined:Jan 2011	Message Posted: Jan 6, 2013 11:09:55 PM Ignore scubadaniel Report Abuse Stupid corporate taxes that WE pay!
DrLyon Champion Author Michigan Posts:6,650 Points:1,211,830 Joined:May 2006	Message Posted: Jan 6, 2013 11:06:25 PM Ignore DrLyon Report Abuse Too bad...
suzmar Champion Author Texas Posts:2,212 Points:872,740 Joined:Jun 2006	Message Posted: Jan 6, 2013 11:04:33 PM Ignore suzmar Report Abuse This isn't unusual ask John Kerry about moving his yacht to avoid high Massachusetts taxes.
Lukus Champion Author Halifax Posts:8,288 Points:1,675,505 Joined:Nov 2007	Message Posted: Jan 6, 2013 11:02:28 PM Ignore Lukus Report Abuse Now Shell could be in trouble.