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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:18,643 Points:1,611,470 Joined:Nov 2008	Message Posted: Jan 9, 2013 3:56:38 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:18,643 Points:1,611,470 Joined:Nov 2008	Message Posted: Jan 9, 2013 3:54:57 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:88,653 Points:3,412,965 Joined:Oct 2003	Message Posted: Jan 8, 2013 5:50:05 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 10:08:46 AM 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:7,277 Points:1,744,630 Joined:Apr 2006	Message Posted: Jan 7, 2013 10:26:37 PM Ignore 52MPG Report Abuse Memo to BO. People will leave rather than pay higher taxes.
NedW Champion Author Indianapolis Posts:5,625 Points:1,144,195 Joined:Mar 2008	Message Posted: Jan 7, 2013 9:53:21 PM Ignore NedW Report Abuse Who can blame them?
rrs517 All-Star Author Colorado Posts:938 Points:346,655 Joined:Apr 2006	Message Posted: Jan 7, 2013 2:21:04 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 1:19:25 PM Ignore WalkingWV Report Abuse The old Shell game! lol
dslxcur Champion Author Seattle Posts:1,983 Points:1,526,250 Joined:Sep 2007	Message Posted: Jan 7, 2013 1:38:01 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:33,073 Points:2,347,460 Joined:Aug 2006	Message Posted: Jan 7, 2013 1:25:40 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:1,281 Points:354,100 Joined:Jan 2012	Message Posted: Jan 6, 2013 10:56:08 PM Ignore naspa Report Abuse Shell should pay their fair share. Jerks! I thought they were better than BP.
Zonk Champion Author Michigan Posts:6,496 Points:2,104,940 Joined:Oct 2005	Message Posted: Jan 6, 2013 10:27:07 PM Ignore Zonk Report Abuse Old News. Who wouldn't try to avoid paying a tax?
76chevy Champion Author Toledo Posts:3,994 Points:770,605 Joined:Jun 2010	Message Posted: Jan 6, 2013 10:20:38 PM Ignore 76chevy Report Abuse ...and the obamanation of America continues!
jrschl Champion Author Louisville Posts:2,977 Points:683,015 Joined:Jun 2011	Message Posted: Jan 6, 2013 10:18:51 PM Ignore jrschl Report Abuse They won't suffer anything. You and I will have to pay it.
TheeRedRam Champion Author Hartford Posts:3,173 Points:675,335 Joined:Jun 2011	Message Posted: Jan 6, 2013 10:16:37 PM Ignore TheeRedRam Report Abuse More B.S.
rsox67 All-Star Author Connecticut Posts:707 Points:268,110 Joined:Jul 2012	Message Posted: Jan 6, 2013 10:14:24 PM Ignore rsox67 Report Abuse Ok
nehemiah Champion Author Portland Posts:4,771 Points:932,565 Joined:Jul 2007	Message Posted: Jan 6, 2013 10:09:43 PM Ignore nehemiah Report Abuse of course, taxes make us do so many weird things
10k Champion Author North Carolina Posts:21,275 Points:2,256,945 Joined:May 2006	Message Posted: Jan 6, 2013 10:09:40 PM Ignore 10k Report Abuse Senrac: i agree.. time to tax algore to the max also..
cheaper0ON All-Star Author Ontario Posts:993 Points:400,005 Joined:Jan 2012	Message Posted: Jan 6, 2013 10:09:33 PM Ignore cheaper0ON Report Abuse Okay.
N5EXY Champion Author Austin Posts:5,502 Points:1,512,030 Joined:Jul 2004	Message Posted: Jan 6, 2013 10:09:24 PM 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 6, 2013 10:07:07 PM Ignore Senrac Report Abuse hey if ALGORE can avoid taxes why cant oil companies ???
Blue_Cruzer Champion Author Lexington Posts:7,530 Points:1,671,535 Joined:Mar 2007	Message Posted: Jan 6, 2013 10:07:02 PM Ignore Blue_Cruzer Report Abuse Good, no sympathy from me,for Shell.
jrsva Champion Author Virginia Posts:9,866 Points:1,615,135 Joined:Jan 2006	Message Posted: Jan 6, 2013 10:05:39 PM 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:1,298 Points:376,485 Joined:Feb 2012	Message Posted: Jan 6, 2013 10:04:38 PM Ignore Ferdman17 Report Abuse Let them pay.
5Golfer8 Champion Author Tucson Posts:2,148 Points:302,600 Joined:Jun 2011	Message Posted: Jan 6, 2013 10:04:20 PM Ignore 5Golfer8 Report Abuse Oh Well!
gasmack Champion Author Ventura Posts:1,718 Points:670,310 Joined:Feb 2011	Message Posted: Jan 6, 2013 10:03:08 PM Ignore gasmack Report Abuse Another example of God does not like ugly.
NAVYHM All-Star Author Cleveland Posts:761 Points:1,387,205 Joined:May 2008	Message Posted: Jan 6, 2013 9:59:59 PM Ignore NAVYHM Report Abuse OK...
HA4CNN Champion Author Toronto Posts:5,639 Points:1,546,415 Joined:Dec 2006	Message Posted: Jan 6, 2013 9:59:03 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:2,815 Points:821,260 Joined:Oct 2006	Message Posted: Jan 6, 2013 9:57:26 PM Ignore wayoung56 Report Abuse Hmmm...
BREW9 All-Star Author Tampa Posts:896 Points:2,914,905 Joined:Jun 2004	Message Posted: Jan 6, 2013 9:54:33 PM Ignore BREW9 Report Abuse ok
SavALot Champion Author Virginia Beach Posts:8,484 Points:1,713,785 Joined:Apr 2005	Message Posted: Jan 6, 2013 9:53:32 PM Ignore SavALot Report Abuse Avoid the taxes!
mstearno Champion Author Dayton Posts:8,080 Points:1,734,140 Joined:Jan 2008	Message Posted: Jan 6, 2013 9:49:36 PM Ignore mstearno Report Abuse traitor??? What is gore?? Selling to avoid tax....
cwashi3324 Champion Author Cincinnati Posts:2,812 Points:575,240 Joined:May 2009	Message Posted: Jan 6, 2013 9:48:46 PM Ignore cwashi3324 Report Abuse You traitor!
DatThao All-Star Author Wilmington Posts:732 Points:142,715 Joined:Oct 2012	Message Posted: Jan 6, 2013 9:44:38 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 9:44:28 PM Ignore bbigred Report Abuse big oil will spend millions trying to save a buck
ldiggy All-Star Author Wilmington Posts:788 Points:291,585 Joined:Apr 2012	Message Posted: Jan 6, 2013 9:40:47 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 9:38:35 PM Ignore seahawks Report Abuse interesting!!!
HawaiianGuy Champion Author Idaho Posts:9,538 Points:3,081,650 Joined:May 2003	Message Posted: Jan 6, 2013 9:36:22 PM Ignore HawaiianGuy Report Abuse Bwah-HA-HA-HAAAA!
RussianAnya All-Star Author Dallas Posts:651 Points:135,575 Joined:Jan 2013	Message Posted: Jan 6, 2013 9:33:05 PM Ignore RussianAnya Report Abuse whoo
lesndave Champion Author Texas Posts:3,052 Points:703,330 Joined:May 2011	Message Posted: Jan 6, 2013 9:32:23 PM Ignore lesndave Report Abuse Whoops
TheSnowstorm Champion Author Montreal Posts:8,634 Points:1,915,955 Joined:June 2005	Message Posted: Jan 6, 2013 9:23:26 PM Ignore TheSnowstorm Report Abuse Oops...
Spankster85 Champion Author Chicago Posts:1,739 Points:359,015 Joined:Nov 2011	Message Posted: Jan 6, 2013 9:21:33 PM Ignore Spankster85 Report Abuse Well that worked out well...
rawdog1313 Champion Author Lexington Posts:3,319 Points:1,645,830 Joined:May 2008	Message Posted: Jan 6, 2013 9:19:17 PM Ignore rawdog1313 Report Abuse Good.........
vrossi46 Champion Author San Jose Posts:2,682 Points:806,870 Joined:Oct 2008	Message Posted: Jan 6, 2013 9:18:35 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 9:14:31 PM Ignore LoadToad Report Abuse ????
jbrad4 All-Star Author Dallas Posts:803 Points:478,210 Joined:Nov 2010	Message Posted: Jan 6, 2013 9:10:03 PM Ignore jbrad4 Report Abuse Sounds like karma is at work here. Serves Shell right, for what happened.
scubadaniel Champion Author Dayton Posts:1,431 Points:694,020 Joined:Jan 2011	Message Posted: Jan 6, 2013 9:09:55 PM Ignore scubadaniel Report Abuse Stupid corporate taxes that WE pay!
DrLyon Champion Author Michigan Posts:6,660 Points:1,213,780 Joined:May 2006	Message Posted: Jan 6, 2013 9:06:25 PM Ignore DrLyon Report Abuse Too bad...
suzmar Champion Author Texas Posts:2,213 Points:874,085 Joined:Jun 2006	Message Posted: Jan 6, 2013 9:04:33 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:8,299 Points:1,677,455 Joined:Nov 2007	Message Posted: Jan 6, 2013 9:02:28 PM Ignore Lukus Report Abuse Now Shell could be in trouble.