Feeds

Accenture accensured for offshore tax haven

Dell dismay as Congress scuppers winning bid

  • alert
  • submit to reddit

Choosing a cloud hosting partner with confidence

A bid led by consulting giant Accenture to administer the IT project that tracks foreigners has been halted in the United States Congress because Accenture is a foreign company that uses Bermuda as a tax haven. So says an important Congressional committee which has voted to strip the company of a lucrative contract.

Accenture, along with Dell, AT&T, Sprint and Raytheon, won the right to administer the US-VISIT project that records and tracks visitors to the USA, in a deal worth around $10bn. But the Congressional appropriations committee has voted 35-17 to strip the victorious 'Team C' of its prize. Rival bids had been tabled by two consortia led by CSC and Lockheed Martin respectively.

Accenture, naturally, isn't very pleased, and points out that it is headquartered in Illinois and pays US taxes. But members of the Congressional appropriations committee expressed outrage that the company, which spun out of the multinational Andersen Consulting in 2001, uses a complex corporate structure with a home in the tax haven of Bermuda. Accenture has 25,000 employees in the US.

Representative Rosa DeLauro, Democrat of Connecticut, who sponsored the amendment, said that "this is about leveling the playing field". Her measure prevents offshore companies from bidding for government contracts. ®

Related stories

Accenture wins $10bn Homeland Security gig
US plans $10bn computer dragnet
The USA: outsourcing heartland

Internet Security Threat Report 2014

Whitepapers

Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Internet Security Threat Report 2014
An overview and analysis of the year in global threat activity: identify, analyze, and provide commentary on emerging trends in the dynamic threat landscape.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.