Hawaii Sues State’s Largest Oil Refiner For Alleged Unpaid Taxes … The whistleblower suit against Par Hawaii could have repercussions for other companies operating in Hawaii’s foreign trade zones.
The State of Hawaii has sued the state’s largest oil refiner, alleging the company relied on a flawed interpretation of state tax law to skirt paying tens of millions of dollars in taxes annually for an unknown number of years.
The lawsuit, a whistleblower complaint filed in Honolulu circuit court against Par Hawaii Refining, could have broad implications for firms operating in Hawaii’s foreign trade zones.
“Specific measures, including conspiring with others, have been taken, many of which were conducted knowingly and/or fraudulently with the intent of avoiding and preventing the State from collecting tens of millions of dollars in taxes per year,” the suit alleges. “Deductions have been claimed without foundation and gross misrepresentations have been made regarding the nature and taxability of refined fuel products, other tangible goods and services for years.”
