A Pencom Software Inc competitor, the 500-person Austin, Texas-based Ralph Kirkley Associates, which has supplied large numbers of temporary programmers, technical support people and consultants to open systems companies such as IBM Corp, especially for its AIX work, finds itself in big trouble. It has pleaded guilty to evading $7.3m of US federal taxes including Social Security, Medicare and income – profit – taxes. Actually the amount is closer to $10m but sums prior to 1991 were not included in the government’s case. Founder Ralph Kirkley, famous for low contract costs, faces five years in jail and a $250,000 fine on each of six counts of tax evasion. The company, which reported paying less in wages and hence less in taxes than it actually did, continues to function. The ramifications for its customers are still unclear.
