Transocean dodges paying U.S. corporate taxes by locating its headquarters in Switzerland.

[ensho]

http://thinkprogress.org/2010/05/14/company-oil-rig-switzerland/


Transocean, Ltd, the company that operates the Deepwater Horizon oil rig which recently exploded in the Gulf, is the “world’s biggest offshore drilling contractor.” The AP reports today that Transocean, after moving its headquarters from the U.S. to Zug, Switzerland, two years ago, paid a paltry 16 percent on its corporate income last year, less than half of the current American corporate income tax rate of 35 percent:

In the foothills of the Swiss Alps four new steel-gray towers rise from what used to be a grassy field. One of them is home to Transocean Ltd., the world’s biggest offshore drilling contractor and owner of the Deepwater Horizon rig that exploded in the Gulf of Mexico, leading to one of the worst oil spills in history.

Low taxes prompted the decision two years ago to move to landlocked Switzerland: The company paid 16 percent tax on its $4.4 billion global operating income last year. The regular corporate income tax in the United States stands at about 35 percent.

The company, once based in Delaware, shifted its head office from the Cayman Islands, where it has been since 1999, to the central Swiss canton (state) of Zug. It joined other international corporations flocking there in search of tax advantages.

Only a dozen of Transocean’s employees are physically located in Zug — more than 1,300 are based in Houston, Texas. A “2005 survey by research firm BAKBASEL found Zug had the lowest effective tax burden for companies and high earners of any Swiss canton, and far below that of other European countries or the United States.” Transocean is holding its shareholder meeting in Zug today, angering some residents. “We want them to stop deepwater drilling and to clean up the damage they caused in the Gulf of Mexico,” said Rupan Sivaganesan, a Green Party member of the cantonal parliament.
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why do we still let them do that?

aren't we in charge now?

[GreenPartyVoter]

1. No, we are not in charge now. ("We" being sensible people like DUers.)

[malaise]

2. They pay the politicians directly

:puke:

[dkf]

3. Like all the major corporations haven't done this?

Isn't this normal?

[ensho]

4. no is abnormal and should be against the law

nt

[MajorChode]

13. It's normal for them to do it

It's not normal for a society to let them get away with it.

[lpbk2713]

5. Rachel spoke about this the other night ... KnR

Add one more item to TransOcean's list of shame.

[bridgit]

6. Small wonder streets in Switzerland stay so clean

[jwirr]

7. Too bad we cannot confiscate their property for taxes on business

done in the US and its waters.

[CreatureFeature]

8. This problem is rampant

read Bartlett and Steel's "Who really pays the taxes"

[madokie]

9. And therein lies America's problem

[Scuba]

10. ... and flies a Marshall Islands flag to circumvent regulations.

Indictments now! Sieze their assets.

[suffragette]

11. The more I read about them, the worse it gets

Transocean transcripts - what did they know & when did they know it
http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x8347642

Transocean may make multimillion profit from the oil disaster
http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x8336750

Oil Rig owner holds closed-door meeting in Switzerland
http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x8336493



We need to take charge, freeze or seize assets and inspect their other rigs.

[RB TexLa]

12. They also dodged Mexican taxes, French taxes, South African taxes, on and on.

I personally have dodged New Zealand taxes my entire life. How can they let me get away with that, I mean who's in charge when a person or entity can chose where they locate? How can such freedom be allowed?

[ima_sinnic]

16. are you taking resources out of New Zealand & making a profit on them?

I didn't think so.

Thanks for the asinine remark.

[bridgit]

17. True ostentatious Swiss & Austrian Libertarian exceptionalism - where you only need to field...

'a guard' with enough intent to roam the Vatican opening doors for the Pope of Rome, and recall your maybe-better days sung in song by Christopher Plummer's Baron Von Trapp where the Alps will not be bothered with the travails of the outside world http://www.youtube.com/watch?v=VcTAEhweey8

We have the same ole Swiss/Austrian no tax axis for a Gov, and its getting very tiresome the opulence they and their Vichy wives & peeps display so effortlessly

[Quantess]

14. kick

[Karenina]

15. +1