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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:18,834 Points:1,638,195 Joined:Nov 2008	Message Posted: Jan 9, 2013 4:56:38 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:18,834 Points:1,638,195 Joined:Nov 2008	Message Posted: Jan 9, 2013 4:54:57 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:89,169 Points:3,438,715 Joined:Oct 2003	Message Posted: Jan 8, 2013 6:50:05 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 11:08:46 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:7,407 Points:1,770,380 Joined:Apr 2006	Message Posted: Jan 7, 2013 11:26:37 PM Ignore 52MPG Report Abuse Memo to BO. People will leave rather than pay higher taxes.
NedW Champion Author Indianapolis Posts:5,755 Points:1,168,970 Joined:Mar 2008	Message Posted: Jan 7, 2013 10:53:21 PM Ignore NedW Report Abuse Who can blame them?
rrs517 Champion Author Colorado Posts:1,065 Points:372,180 Joined:Apr 2006	Message Posted: Jan 7, 2013 3:21:04 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:3,755 Points:788,930 Joined:May 2008	Message Posted: Jan 7, 2013 2:19:25 PM Ignore WalkingWV Report Abuse The old Shell game! lol
dslxcur Champion Author Seattle Posts:1,986 Points:1,536,210 Joined:Sep 2007	Message Posted: Jan 7, 2013 2:38:01 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:33,600 Points:2,373,210 Joined:Aug 2006	Message Posted: Jan 7, 2013 2:25:40 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:1,417 Points:379,850 Joined:Jan 2012	Message Posted: Jan 6, 2013 11:56:08 PM Ignore naspa Report Abuse Shell should pay their fair share. Jerks! I thought they were better than BP.
Zonk Champion Author Michigan Posts:6,626 Points:2,130,690 Joined:Oct 2005	Message Posted: Jan 6, 2013 11:27:07 PM Ignore Zonk Report Abuse Old News. Who wouldn't try to avoid paying a tax?
76chevy Champion Author Toledo Posts:4,023 Points:779,395 Joined:Jun 2010	Message Posted: Jan 6, 2013 11:20:38 PM Ignore 76chevy Report Abuse ...and the obamanation of America continues!
jrschl Champion Author Louisville Posts:3,107 Points:708,765 Joined:Jun 2011	Message Posted: Jan 6, 2013 11:18:51 PM Ignore jrschl Report Abuse They won't suffer anything. You and I will have to pay it.
TheeRedRam Champion Author Hartford Posts:3,308 Points:701,310 Joined:Jun 2011	Message Posted: Jan 6, 2013 11:16:37 PM Ignore TheeRedRam Report Abuse More B.S.
rsox67 All-Star Author Connecticut Posts:799 Points:291,365 Joined:Jul 2012	Message Posted: Jan 6, 2013 11:14:24 PM Ignore rsox67 Report Abuse Ok
nehemiah Champion Author Portland Posts:4,896 Points:958,090 Joined:Jul 2007	Message Posted: Jan 6, 2013 11:09:43 PM Ignore nehemiah Report Abuse of course, taxes make us do so many weird things
10k Champion Author North Carolina Posts:21,494 Points:2,282,695 Joined:May 2006	Message Posted: Jan 6, 2013 11:09:40 PM Ignore 10k Report Abuse Senrac: i agree.. time to tax algore to the max also..
cheaper0ON Champion Author Ontario Posts:1,123 Points:425,755 Joined:Jan 2012	Message Posted: Jan 6, 2013 11:09:33 PM Ignore cheaper0ON Report Abuse Okay.
N5EXY Champion Author Austin Posts:5,639 Points:1,538,005 Joined:Jul 2004	Message Posted: Jan 6, 2013 11:09:24 PM Ignore N5EXY Report Abuse So what? I would do the same.
Senrac Champion Author Lincoln Posts:1,594 Points:307,560 Joined:Mar 2010	Message Posted: Jan 6, 2013 11:07:07 PM Ignore Senrac Report Abuse hey if ALGORE can avoid taxes why cant oil companies ???
Blue_Cruzer Champion Author Lexington Posts:7,660 Points:1,697,285 Joined:Mar 2007	Message Posted: Jan 6, 2013 11:07:02 PM Ignore Blue_Cruzer Report Abuse Good, no sympathy from me,for Shell.
jrsva Champion Author Virginia Posts:10,004 Points:1,641,675 Joined:Jan 2006	Message Posted: Jan 6, 2013 11:05:39 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:1,425 Points:402,010 Joined:Feb 2012	Message Posted: Jan 6, 2013 11:04:38 PM Ignore Ferdman17 Report Abuse Let them pay.
5Golfer8 Champion Author Tucson Posts:2,263 Points:326,925 Joined:Jun 2011	Message Posted: Jan 6, 2013 11:04:20 PM Ignore 5Golfer8 Report Abuse Oh Well!
gasmack Champion Author Ventura Posts:1,752 Points:679,840 Joined:Feb 2011	Message Posted: Jan 6, 2013 11:03:08 PM Ignore gasmack Report Abuse Another example of God does not like ugly.
NAVYHM All-Star Author Cleveland Posts:761 Points:1,405,955 Joined:May 2008	Message Posted: Jan 6, 2013 10:59:59 PM Ignore NAVYHM Report Abuse OK...
HA4CNN Champion Author Toronto Posts:5,765 Points:1,571,190 Joined:Dec 2006	Message Posted: Jan 6, 2013 10:59:03 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:2,925 Points:845,985 Joined:Oct 2006	Message Posted: Jan 6, 2013 10:57:26 PM Ignore wayoung56 Report Abuse Hmmm...
BREW9 Champion Author Tampa Posts:1,025 Points:2,940,635 Joined:Jun 2004	Message Posted: Jan 6, 2013 10:54:33 PM Ignore BREW9 Report Abuse ok
SavALot Champion Author Virginia Beach Posts:8,623 Points:1,739,410 Joined:Apr 2005	Message Posted: Jan 6, 2013 10:53:32 PM Ignore SavALot Report Abuse Avoid the taxes!
mstearno Champion Author Dayton Posts:8,174 Points:1,755,920 Joined:Jan 2008	Message Posted: Jan 6, 2013 10:49:36 PM Ignore mstearno Report Abuse traitor??? What is gore?? Selling to avoid tax....
cwashi3324 Champion Author Cincinnati Posts:2,863 Points:587,720 Joined:May 2009	Message Posted: Jan 6, 2013 10:48:46 PM Ignore cwashi3324 Report Abuse You traitor!
DatThao All-Star Author Wilmington Posts:831 Points:164,925 Joined:Oct 2012	Message Posted: Jan 6, 2013 10:44:38 PM Ignore DatThao Report Abuse Another loophole case.
bbigred Veteran Author Lansing Posts:428 Points:298,620 Joined:May 2006	Message Posted: Jan 6, 2013 10:44:28 PM Ignore bbigred Report Abuse big oil will spend millions trying to save a buck
ldiggy All-Star Author Wilmington Posts:916 Points:317,275 Joined:Apr 2012	Message Posted: Jan 6, 2013 10:40:47 PM Ignore ldiggy Report Abuse Sounds like they're getting what they deserve.
seahawks Champion Author Washington Posts:3,331 Points:1,985,250 Joined:Sep 2005	Message Posted: Jan 6, 2013 10:38:35 PM Ignore seahawks Report Abuse interesting!!!
HawaiianGuy Champion Author Idaho Posts:9,665 Points:3,106,590 Joined:May 2003	Message Posted: Jan 6, 2013 10:36:22 PM Ignore HawaiianGuy Report Abuse Bwah-HA-HA-HAAAA!
RussianAnya All-Star Author Dallas Posts:703 Points:157,365 Joined:Jan 2013	Message Posted: Jan 6, 2013 10:33:05 PM Ignore RussianAnya Report Abuse whoo
lesndave Champion Author Texas Posts:3,178 Points:728,855 Joined:May 2011	Message Posted: Jan 6, 2013 10:32:23 PM Ignore lesndave Report Abuse Whoops
TheSnowstorm Champion Author Montreal Posts:8,732 Points:1,940,315 Joined:June 2005	Message Posted: Jan 6, 2013 10:23:26 PM Ignore TheSnowstorm Report Abuse Oops...
Spankster85 Champion Author Chicago Posts:1,859 Points:384,315 Joined:Nov 2011	Message Posted: Jan 6, 2013 10:21:33 PM Ignore Spankster85 Report Abuse Well that worked out well...
rawdog1313 Champion Author Lexington Posts:3,444 Points:1,671,480 Joined:May 2008	Message Posted: Jan 6, 2013 10:19:17 PM Ignore rawdog1313 Report Abuse Good.........
vrossi46 Champion Author San Jose Posts:2,802 Points:830,670 Joined:Oct 2008	Message Posted: Jan 6, 2013 10:18:35 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 10:14:31 PM Ignore LoadToad Report Abuse ????
jbrad4 All-Star Author Dallas Posts:809 Points:500,605 Joined:Nov 2010	Message Posted: Jan 6, 2013 10:10:03 PM Ignore jbrad4 Report Abuse Sounds like karma is at work here. Serves Shell right, for what happened.
scubadaniel Champion Author Dayton Posts:1,556 Points:719,525 Joined:Jan 2011	Message Posted: Jan 6, 2013 10:09:55 PM Ignore scubadaniel Report Abuse Stupid corporate taxes that WE pay!
DrLyon Champion Author Michigan Posts:6,769 Points:1,239,365 Joined:May 2006	Message Posted: Jan 6, 2013 10:06:25 PM Ignore DrLyon Report Abuse Too bad...
suzmar Champion Author Texas Posts:2,224 Points:897,080 Joined:Jun 2006	Message Posted: Jan 6, 2013 10:04:33 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:8,424 Points:1,702,230 Joined:Nov 2007	Message Posted: Jan 6, 2013 10:02:28 PM Ignore Lukus Report Abuse Now Shell could be in trouble.