Halliburton Dubai Move Revives Foreign Tax Controversy

[maddezmom]

UPDATE: Halliburton Dubai Move Revives Foreign Tax Controversy



By Laura Mandaro

SAN FRANCISCO (Dow Jones) -- Halliburton Co.'s decision to relocate its chief executive and corporate headquarters to Dubai has scratched one of Congress' most sensitive sore spots -- suspicion that U.S. corporations are restructuring their operations to shirk domestic taxes.

Adding to a rush of Democrat calls for hearings, the House is pushing forward a bill whose accompanying report will ask the White House to address no-bid government contracts for contractors who relocate overseas, an apparent reference to plans by the defense contractor and oilfield services company.

~snip~

U.S. companies do not have to pay domestic income taxes on earnings of a foreign subsidiary until they decide to bring the money back into this country, a process known as repatriation. Dubai has no corporate income tax, a big advantage compared with the 35% corporations pay on earnings ay home.

And U.S. companies typically do not pay U.S. payroll taxes on their overseas workers.

Terrence Chorvat, an associate professor in international tax law at George Mason University, says those tax advantages will help if the company grows its business in Dubai.

"I think there is some truth in the initial argument that they're going to Dubai because that's where the action is, but I think there's also somewhat of a U.S. tax-play," he said.

more:http://www.nasdaq.com/aspxcontent/NewsStory.aspx?cpath=20070314%5cACQDJON200703140518DOWJONESDJONLINE000373.htm&

[whistle]

1. Haliburton executive structure is fleeing the country to avoid prosecution

...of the kind Enron execs went through

[wakeme2008]

2. Bingo I think that has more to do with it than tax

:grr: