June 9, 2004 – Accenture (NYSE: ACN) today issued the following statement regarding the U.S. House Appropriations Committee vote on the U.S. Department of Homeland Security’s United States Visitor and Immigrant Status Indicator Technology (US-VISIT) contract:
It is early in the legislative process. We continue to monitor legislative developments closely.
It is important to remember that the global Accenture organization has never been a U.S.-based or U.S.-operated organization and has never operated under a U.S. parent corporation. Despite what some of our critics say, Accenture did not undertake what is called a “U.S. corporate inversion.”
As a global company, Accenture pays, and has always paid, our fair share of taxes in each of the countries in which we generate income, including the United States. We pay U.S. taxes on income generated by our U.S. operations, and we pay taxes on non-U.S. income in the countries in which that income is generated. In fact, Accenture’s effective tax rate for the full fiscal year 2004 is expected to be 34.8 percent.
Accenture LLP, Accenture’s U.S.-based subsidiary, employs more than 25,000 people in the U.S. The Department of Homeland Security chose the Accenture LLP-led Smart Border Alliance based upon cost, capability and management criteria. Accenture LLP will pay taxes in the U.S. on the income generated from this contract.
Obtaining full and open competition is fundamental to federal procurement. Preventing the most qualified company, whether it is a global company or its U.S.-based subsidiary, from bidding on government contracts rejects the free market principles of the federal procurement system.