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Department of Defense Still Paying Some Foreign Taxes

C-ID-81-2 Published: Dec 15, 1980. Publicly Released: Dec 15, 1980.
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Highlights

Since the early 1900's, Congress has expressed concern that the United States not pay taxes to foreign governments on defense activities overseas. In 1979, the House Committee on Appropriations noted that some tax payments were continuing and reiterated its longstanding objection to such payments. In its fiscal year 1980 report, the Committee deleted funds in Department of Defense appropriations earmarked for this purpose. In 1981 appropriations for military construction, Congress expressly banned the use of funds for the payment of property taxes to any foreign government.

Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Department of Defense The Secretary of Defense should study the German trade tax law liability to determine whether the changed status of the Mainz Army depot justifies tax exemption.
Closed
Please call 202/512-6100 for additional information.
Department of Defense The Secretary of Defense should conduct a special property tax study to develop data on services provided to U.S. forces by local taxing bodies in return for payment of the land tax on family housing, and the extent to which U.S. personnel and dependents use those services.
Closed
Please call 202/512-6100 for additional information.
Department of State The Secretary of State should strengthen the Interagency Committee on Foreign Tax Relief.
Closed
Please call 202/512-6100 for additional information.
Department of Defense The Secretary of Defense should reemphasize the importance of the Foreign Tax Relief Program and assure that local commands maintain current country tax law studies and prepare comprehensive annual reports.
Closed
Please call 202/512-6100 for additional information.
Department of State The Secretary of State should examine the agreement with the United Kingdom to pay contributions in lieu of rates on U.S. diplomatic property to assure that the agreement affords the U.S. Government benefits commensurate with those provided to British Government property in the United States.
Closed
Please call 202/512-6100 for additional information.
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Housing
Armed forces abroadInternational cooperationInternational economic relationsMilitary facilitiesMilitary personnelTax exempt statusTaxesProperty taxesMilitary forcesForeign governments