Halliburton Moving HQ to Dubai

  1. Wow, I was blown away when I heard this. Does anyone see anything morally, ethically or even legally wrong here?

    Halliburton Moving to Dubai to Avoid Taxes
    http://www.alaskareport.com/z45448.htm

    The company said it hoped the move to the UAE would help expand its business in the Middle East.
    Business analysts say the real reason isthe huge reduction in the taxes it will have to pay.

    Halliburton Moving to Dubai
    http://money.cnn.com/2007/03/12/news...listing2.reut/

    "This is an insult to the U.S. soldiers and taxpayers who have paid the tab for all their no bid contracts and endured their overcharges for all these years" said judiciary commitee Chairman Sen.Patrick leahy.
    Rep. Henry Waxman, Chairman of the House Oversight and Government Reform Commitee, might hold a hearing on the implications,an aide to Waxman said.
    Last edit by Simplepleasures on Mar 13, '07
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  2. 11 Comments

  3. by   CHATSDALE
    old saying: you can't be to thin or TOO RICH
  4. by   Spidey's mom
    There is nothing legally, morally or ethically wrong here.

    "Halliburton is opening a corporate headquarters there and moving its chairman and chief executive there."

    "It will still maintain its corporate office here and as well as its legal incorporation in the US."

    “The C.E.O.’s job is global by nature. He will continue to remain attentive to our shareholders, clients and employees around the world.”

    http://www.nytimes.com/2007/03/12/bu...GBUhalliburton

    Halliburton is in the oil services business . . they are not "big oil" but they work for the oil companies and from what I've been reading most of their business is overseas . . Asia, The Middle East, etc. Not in America - as we've pretty much shut down any oil exploration.

    It just makes corporate sense to have a headquarters in the part of the world you are doing business in.

    "The oil services company insists it will gain no special tax or legal advantages from the move, and that Halliburton will keep a big presence in Texas even though its business is now global.
    "There's not much oil in Texas any more," said Dalton Garis, an American energy economist at the Petroleum Institute in Abu Dhabi. "Halliburton is in the oil and gas industry and guess what? Sixty percent of the world's oil and gas is right here. If they didn't move now, they'd have to do it later."


    "In addition, company officials said Halliburton, which has operated in Dubai for more than 40 years, will remain a U.S. corporation for tax purposes, incorporated in Delaware, and doesn't expect to reap any tax benefits from the Dubai headquarters operation."

    http://www.dallasnews.com/sharedcont...D8NRGRL00.html

    steph - who refuses to see a bogeyman around every corner.
    Last edit by Spidey's mom on Mar 13, '07
  5. by   Simplepleasures
    Quote from stevielynn
    There is nothing legally, morally or ethically wrong here.


    steph - who refuses to see a bogeyman around every corner.
    Hopefully the House Oversight and Government Reform Commitee will get to the truth of the matter,real or imagined bogeymen.
  6. by   Spidey's mom
    Quote from ingelein
    Hopefully the House Oversight and Government Reform Commitee will get to the truth of the matter,real or imagined bogeymen.
    Now THAT is a waste of my tax money.



    steph
  7. by   bethin
    Quote from stevielynn
    There is nothing legally, morally or ethically wrong here.
    I agree. Companies routinely do this. My dad's employer (a MAJOR company) shut down half the factory because it outsourced its jobs. While it's not ideal to leave employees out of a job it's not illegal.

    I'd think it would make geographical sense to move an oil company to a very rich oil country.
  8. by   Spidey's mom
    Quote from bethin
    I agree. Companies routinely do this. My dad's employer (a MAJOR company) shut down half the factory because it outsourced its jobs. While it's not ideal to leave employees out of a job it's not illegal.

    I'd think it would make geographical sense to move an oil company to a very rich oil country.
    So far, Halliburton says they aren't going to lay off workers.

    steph
  9. by   SmilingBluEyes
    I don't believe that.
    (nobody will be laid off)
    No not illegal. But ethically, I have issues.
  10. by   Multicollinearity
    I would imagine this would have more to do with the fact that Dubai has no extradition treaty with the United States. Halliburton is probably going to be investigated by the dems, and Bush/Cheney cannot protect Halliburton after they are out of office. Maybe the upper echelon of Halliburton anticipate the coming investigations and don't want to end up like Ken Lay & co.

    http://www.state.gov/p/nea/ci/79207.htm

    Agreements and Treaties. No extradition or mutual legal assistance treaties (MLAT) exist between the United States and the UAE, although the two countries are exploring whether to negotiate an MLAT.
  11. by   indigo girl
    Quote from multicollinarity
    I would imagine this would have more to do with the fact that Dubai has no extradition treaty with the United States. Halliburton is probably going to be investigated by the dems, and Bush/Cheney cannot protect Halliburton after they are out of office. Maybe the upper echelon of Halliburton anticipate the coming investigations and don't want to end up like Ken Lay & co.

    http://www.state.gov/p/nea/ci/79207.htm

    Agreements and Treaties. No extradition or mutual legal assistance treaties (MLAT) exist between the United States and the UAE, although the two countries are exploring whether to negotiate an MLAT.
    Good point, multicollinarity. I would be worried if I were them also.
  12. by   Bluehair
    My DH is also one of those oil and gas analysts by profession. It is his opinion that Halliburton is moving to Dubai because most of their current business is in the Middle East, and they want to expand that further. Current legislative actions have prevented any further oil and gas development off the coast of California (current conservative estimates are in the range of 10 Billion barrels here) as well in Alaska where known large reserves also exist. It is his opinion they are moving to an area that is more receptive to growth and development of this industry. They are doing what they need to do since our country is not supportive of their growth here.
  13. by   Spidey's mom
    Quote from Bluehair
    My DH is also one of those oil and gas analysts by profession. It is his opinion that Halliburton is moving to Dubai because most of their current business is in the Middle East, and they want to expand that further. Current legislative actions have prevented any further oil and gas development off the coast of California (current conservative estimates are in the range of 10 Billion barrels here) as well in Alaska where known large reserves also exist. It is his opinion they are moving to an area that is more receptive to growth and development of this industry. They are doing what they need to do since our country is not supportive of their growth here.
    That has been my understanding as well and it makes perfect sense.


    steph

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