Dart Container - IRS Controversy

IRS Controversy

The company is owned by brothers Kenneth B. Dart and Robert C. Dart, who gave up their U.S. citizenship and moved to the Cayman Islands.

In 2001 the Internal Revenue Service said the Dart brothers improperly billed $11.6 million of personal security costs to Dart Container. In U.S. Tax Court, Dart Container argued the money was a valid business expense due to "specific threats and other facts and circumstances". Half the money went for corporate aircraft. The IRS asked for $4 million more for 1996 and 1997 taxes.

In 2003 the Internal Revenue Service took the brothers to court, saying they owed an additional $19 million in 1998 and 1999 taxes. In 2002 the Dart brothers and their companies paid $26 million in back taxes.

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