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SOUTHEAST TEXAS RECORD

Thursday, March 28, 2024

BP America demands employee repay $54K debt

Lawsuits
Contract 05

GALVESTON – BP America, Inc. is demanding an employee reimburse it nearly $60,000.

A lawsuit filed on July 30 in the Galveston County 212th District Court asserts that Curtis Gerald Merritt, also known as Gerald Curtis Merritt, owes BP a tax equalization settlement of $54,249.

The plaintiff employed Merritt on an expatriate tax assignment overseas. It reportedly implemented a tax equalization policy that ensured employees abroad are not financially burdened.

“To this end, BP paid all foreign income taxes on the defendant’s behalf due to this assignment overseas,” the 4-page suit says. “These foreign tax payments created a dollar for dollar tax credit in the U.S., which were used to reduce the defendant’s U.S. tax liability.”

The policy additionally called for Merritt “to repay BP the amount by which the foreign tax credits were used to reduce his U.S. tax liability.”

“This process of ‘tax equalization’ resulted in the defendant being responsible for U.S. taxes in the same manner as if he remained in the U.S.,” the original petition says.

Court papers show the purported debt was brought to Merritt’s attention last year. The defendant allegedly refused to pay BP in return.

BP’s legal counsel is the law firm Lam, Lyn & Philip, P.C. in Houston.

Galveston County 212th District Court Case No. 18-CV-1027

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