United And AA Accused Of Tax Dodges

The Illinois Regional Transportation Authority is suing United Airlines over an alleged tax dodge. The authority claims that United set up a “sham” office in Sycamore, Illinois in order to avail itself of a lower tax rate on fuel transactions. The relevant tax is eight per cent in Sycamore compared with 9.5 per cent in Chicago, where the RTA claims that United’s true fuel sales activity occurs. "These are empty offices with part-time employees," said RTA chief of staff Jordan Matyas, who added that the RTA intended to pursue American Airlines for a similar ruse once the airline emerged from bankruptcy protection.

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