Well, we shall see what all happens with the big wigs. I like the "alibi" dig too. But I doubt that this will change anyone's citizenship among the ranks... Some blurb on the news just said the Tax status will stay the same because of it's U.S. ties... only the HQ to Dubai, etc... We shall see. Channel 8 Dallas, wfaa.com if you wanna find it... or just google the thing. I'm too tired to look it up.
Actually I read up on this some more. Halliburton has already announced that they will maintain their legal registration in the US so they aren't avoiding any taxes. It seems really sketchy because it is Halliburton that we are talking about but apparently they just may be doing a smart business move without any sneaky motives.
Funny..earlier this week I was covering rumors that many of the diamond companies in Antwerp (the diamond cutting capital of the world) were considering moving to Dubai. Many jewelry companies from India and the Gulf States have moved there. Dubai has been hard at work for years to provide incentives to bring business there. Even we have an office there (and our HQ is in Israel).
it just seems to me that the move to Dubai will help them escape taxes on foregin contracts. Now they will only have to pay taxes on domestic business. Any accountants out there who can give us more insight?
I know American corporations are not allowed to do business with Iran. Will this enable Halliburton to do business in Iran?
Halliburton regularly did business with Iran as well as Iraq, all while Cheny was CEO via their French joint-ventures & subsidiaries. They even had an office there.
Gotta love the Daily Show take on it... They are moving to Dubai and changing the pronunciation of the their name to "Hach' Ali Bour Tune"
They are only moving their head office to Dubai, not re-incorporating the entire company there. Halliburton is a US-incorporated Delaware company, which is standard for corporations. Therefore, they will be taxed just as they currently are taxed (save a few individual ex-pat employees who will save a bit on their foreign source income working there, but not the company itself). This is not a move by Halliburton to escape taxes . . .
No it is not, it incorporates its subsidiaries in tax havens in order to avoid taxes, then shifts its income around to minimize the bite. Either that or there's a whole lot of oil in the Caymans and Liechtnstein that i don't know about. It also allows it to do business in Iraq & Iran and avoid pesky regulations like that. Obviously everybody does this, but it is just ironic that it is the VP's company that made use of these loopholes so liberally under his aegis.
I fully agree with your general points, but Halliburton is in fact a Delaware corporation, regardless of where their subsidiaries are domiciled. While some operations are not fully taxed, the company pays US corporate income taxes. I simply stated that they will be taxed just as they are taxed now, whatever that may be. The move to Dubai is not for tax reasons.
Slightly off-topic: Does the UAE have the kind of complete hands-off approach that some other "tax havens" have? I refuse to invest in companies that are incorporated in Bermuda because I have seen too many try to hide things from investors. I have the opinion that companies only incorporate in Bermuda so that the executives won't be convicted of the fraud they are about to commit. I have never had any interest in investing in an Emirates-based company, so I don't anything about that.
Well, I hope the libpigs can be proud of the fact that their ridiculous attacks on Halliburton drove them to relocate away from our great nation. Glad the libs are working to further America's best interest instead of their own partisan self interests... oh wait, they are doing the opposite... typical libs... "oh, there are consequences to relentlessly working to destroy an American company?" Morons...
thanks moron.. you basically admitted that halliburton is guilty of the allegations against them thats why they decided to cut and run instead of facing the music..
From a business point of view, Halliburton's move to Dubai is a brilliant move to enable the company better conducting transactions with surrounding countries; of course, I expect the stock value to go up at least 30% this year.
HAL sure gets a lot of hate around here as compare to other big companies. I would thought a company with a PE of 14 and a nice dividend should be sitting pretty in a prudent investor's portfolio.
