Swiss retreat helps Transocean save millions

[babylonsister]

Swiss retreat helps Transocean save millions
By FRANK JORDANS, Associated Press
AP


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 -- and provoking simmering resentment among residents forced to move out in search of affordable housing, says Rupan Sivaganesan, a member of the cantonal parliament.

"For years the canton has been luring companies with low taxes," said Sivaganesan, adding that many corporate headquarters create hardly any jobs.

Anger among Zug residents and environmental groups is expected to boil into open protest Friday when Transocean's board comes to town for its annual shareholders meeting.

"We want them to stop deepwater drilling and to clean up the damage they caused in the Gulf of Mexico," said Sivaganesan, who holds one of 12 Green Party seats in the 80-member parliament.

more...

http://www.salon.com/wires/allwires/2010/05/14/D9FMHL8O0_eu_oil_spill_transocean_switzerland/index.html

[AndyA]

1. When is Congress going to close the corporate tax loop holes that allow

major corporations to not pay taxes?

I read an article once that listed the corporations here in America that paid little or no taxes for the year, and it was shocking. How can we possibly expect to pay down the deficit if big business gets off scott free? :shrug:

I guess that's what all those campaign bribes donations must be for. It's time for publicly-financed campaigns. Take the corporate money--and the corporate power--out of the process.

[babylonsister]

2. I know the IRS went after individual tax evaders, but

I agree that corps. need to be targeted. Something should be done.

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=102x4103333

7,500 offshore tax evaders come clean

[karynnj]

4. Kerry and Baucus got a provision in a passed bill which makes it easier

to get investors who try to hide the money off shore. Since then, Kerry has continued to speak about companies that avoid taxes by listing their addresses overseas. This is a better than normal time to pass something like this because there is so many things money is needed for, but the deficit is so high that having offsets that pay for them is important.

[customerserviceguy]

3. It's way more than that

I'm certain that the reason BP is hiding behind some Swiss company is to lower the amount they eventually have to pay for any foul-ups that would occur from shoddy engineering practices. I doubt that the Swiss are going to let anyone foreclose on that steel-gray tower to pay for damages done.

[babylonsister]

5. Kickin' this, because Rachel is opening with "ZUG". nt