Eleven Boeing workers arrested in South Carolina for tax evasion

Reuters News
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Posted: Apr 06, 2016 9:52 AM

(Reuters) - Eleven Boeing Co employees have been arrested in South Carolina for allegedly attempting to evade state income taxes, and the state's revenue department said more arrests were likely.

The individuals collectively earned more than $2.2 million between 2011 and 2014, and evaded paying $99,729 in individual income taxes, the South Carolina Department of Revenue said in a statement on Tuesday.

Boeing said the identified employees have been suspended.

"We will continue to cooperate with the state and the Department of Revenue until these individual matters are closed," Boeing said.

The employees submitted fraudulent W-4 forms to Boeing, claiming to be exempt from state income taxes and had failed to file state income tax returns, the revenue department said.

A W-4 form is used by employers to determine the amount of taxes to withhold from paychecks.

The defendants, who are being held at a detention facility in Charleston County, face up to $10,000 in fines and/or up to five years in prison per charge if convicted.

(Reporting by Ankit Ajmera in Bengaluru; Editing by Anupama Dwivedi)