US Fails To Shield Contractors From $920M In Afghan Taxes

By Dietrich Knauth (May 14, 2013, 9:09 PM EDT) -- The U.S.' failure to enforce nontaxation agreements has allowed Afghanistan to collect more than $920 million in improper taxes from U.S. contractors, according to a new report that experts say highlights the persistent challenge of coordinating federal agencies to ensure war spending isn't wasted.

The Special Inspector General for Afghanistan Reconstruction, or SIGAR, reported Tuesday that his office examined $921 million in business taxes and penalties levied against 43 contractors supporting U.S. rebuilding efforts in Afghanistan, in spite of agreements meant to ensure that U.S. contractors aren't taxed. Those agreements "appear to be failing in their purpose," in part because the...

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