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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
Category: Daily News Article Discussions > Topics Add to favorite topics  
Author Topic: New twist in stricken rig saga: Shell was moving it to avoid tax Back to Topics
REPLIES (newest first) Post a Reply
honda0105
Champion Author Tallahassee

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Message Posted: Jan 9, 2013 5:56:38 AM

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

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Message Posted: Jan 9, 2013 5:54:57 AM

52mpg: that tax had NOTHING to do w/ the feds and EVERYthing w/ Alaska tax code.
amchornetx
Champion Author Twin Cities

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Message Posted: Jan 8, 2013 7:50:05 PM

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

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Points:155,275
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Message Posted: Jan 8, 2013 12:08:46 PM

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

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Message Posted: Jan 8, 2013 12:26:37 AM

Memo to BO.

People will leave rather than pay higher taxes.

NedW
Champion Author Indianapolis

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Message Posted: Jan 7, 2013 11:53:21 PM

Who can blame them?
rrs517
Champion Author Colorado

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Message Posted: Jan 7, 2013 4:21:04 PM

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

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Message Posted: Jan 7, 2013 3:19:25 PM

The old Shell game! lol
dslxcur
Champion Author Seattle

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Message Posted: Jan 7, 2013 3:38:01 AM

Dang! .........................................................

Round And Round She Goes.......................................

Now You See It ......................................................

Now You Don't......................................................

Welcome To The Shell Game............................................
tomok
Champion Author Portland

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Message Posted: Jan 7, 2013 3:25:40 AM

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

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Message Posted: Jan 7, 2013 12:56:08 AM

Shell should pay their fair share. Jerks! I thought they were better than BP.
Zonk
Champion Author Michigan

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Message Posted: Jan 7, 2013 12:27:07 AM

Old News. Who wouldn't try to avoid paying a tax?
76chevy
Champion Author Toledo

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Message Posted: Jan 7, 2013 12:20:38 AM

...and the obamanation of America continues!
jrschl
Champion Author Louisville

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Message Posted: Jan 7, 2013 12:18:51 AM

They won't suffer anything. You and I will have to pay it.
TheeRedRam
Champion Author Hartford

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Message Posted: Jan 7, 2013 12:16:37 AM

More B.S.
rsox67
Champion Author Connecticut

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Message Posted: Jan 7, 2013 12:14:24 AM

Ok
nehemiah
Champion Author Portland

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Message Posted: Jan 7, 2013 12:09:43 AM

of course, taxes make us do so many weird things
10k
Champion Author North Carolina

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Message Posted: Jan 7, 2013 12:09:40 AM

Senrac: i agree..

time to tax algore to the max also..
cheaper0ON
Champion Author Ontario

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Message Posted: Jan 7, 2013 12:09:33 AM

Okay.
N5EXY
Champion Author Austin

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Message Posted: Jan 7, 2013 12:09:24 AM

So what? I would do the same.
Senrac
Champion Author Lincoln

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Message Posted: Jan 7, 2013 12:07:07 AM

hey if ALGORE can avoid taxes why cant oil companies ???
Blue_Cruzer
Champion Author Lexington

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Message Posted: Jan 7, 2013 12:07:02 AM

Good, no sympathy from me,for Shell.
jrsva
Champion Author Virginia

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Message Posted: Jan 7, 2013 12:05:39 AM


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

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Message Posted: Jan 7, 2013 12:04:38 AM

Let them pay.
5Golfer8
Champion Author Tucson

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Message Posted: Jan 7, 2013 12:04:20 AM

Oh Well!
gasmack
Champion Author Ventura

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Message Posted: Jan 7, 2013 12:03:08 AM

Another example of God does not like ugly.
NAVYHM
All-Star Author Cleveland

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Message Posted: Jan 6, 2013 11:59:59 PM

OK...
HA4CNN
Champion Author Toronto

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Message Posted: Jan 6, 2013 11:59:03 PM

Looks good on them but how much will the public have to pay in increased prices.
wayoung56
Champion Author Alabama

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Message Posted: Jan 6, 2013 11:57:26 PM

Hmmm...
BREW9
Champion Author Tampa

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Message Posted: Jan 6, 2013 11:54:33 PM

ok
SavALot
Champion Author Virginia Beach

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Message Posted: Jan 6, 2013 11:53:32 PM

Avoid the taxes!
mstearno
Champion Author Dayton

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Message Posted: Jan 6, 2013 11:49:36 PM

traitor???
What is gore??
Selling to avoid tax....
cwashi3324
Champion Author Cincinnati

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Message Posted: Jan 6, 2013 11:48:46 PM

You traitor!
DatThao
Champion Author Wilmington

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Message Posted: Jan 6, 2013 11:44:38 PM

Another loophole case.
bbigred
Veteran Author Lansing

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Message Posted: Jan 6, 2013 11:44:28 PM

big oil will spend millions trying to save a buck
ldiggy
Champion Author Wilmington

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Message Posted: Jan 6, 2013 11:40:47 PM

Sounds like they're getting what they deserve.
seahawks
Champion Author Washington

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Message Posted: Jan 6, 2013 11:38:35 PM

interesting!!!
HawaiianGuy
Champion Author Idaho

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Message Posted: Jan 6, 2013 11:36:22 PM

Bwah-HA-HA-HAAAA!
RussianAnya
All-Star Author Dallas

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Message Posted: Jan 6, 2013 11:33:05 PM

whoo
lesndave
Champion Author Texas

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Message Posted: Jan 6, 2013 11:32:23 PM

Whoops
TheSnowstorm
Champion Author Montreal

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Message Posted: Jan 6, 2013 11:23:26 PM

Oops...
Spankster85
Champion Author Chicago

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Message Posted: Jan 6, 2013 11:21:33 PM

Well that worked out well...
rawdog1313
Champion Author Lexington

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Message Posted: Jan 6, 2013 11:19:17 PM

Good.........
vrossi46
Champion Author San Jose

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Message Posted: Jan 6, 2013 11:18:35 PM

don't be fooled, we end up paying for stupid mistakes like this
LoadToad
Champion Author San Diego

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Message Posted: Jan 6, 2013 11:14:31 PM

????
jbrad4
All-Star Author Dallas

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Message Posted: Jan 6, 2013 11:10:03 PM

Sounds like karma is at work here.
Serves Shell right, for what happened.
scubadaniel
Champion Author Dayton

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Message Posted: Jan 6, 2013 11:09:55 PM

Stupid corporate taxes that WE pay!
DrLyon
Champion Author Michigan

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Message Posted: Jan 6, 2013 11:06:25 PM

Too bad...
suzmar
Champion Author Texas

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Message Posted: Jan 6, 2013 11:04:33 PM

This isn't unusual ask John Kerry about moving his yacht to avoid high Massachusetts taxes.
Lukus
Champion Author Halifax

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Message Posted: Jan 6, 2013 11:02:28 PM

Now Shell could be in trouble.
GordoM
Champion Author Detroit

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Message Posted: Jan 6, 2013 11:01:52 PM

Michigan just eliminated a tax on corporate productive property. Alaska should do the same. Why tax capital equipment that creates jobs and revenue? Results in productive assets leaving the state, just as this drilling rig was trying to do. A great example if unintended consequences of bad tax laws.
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