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<blockquote data-quote="Babagounj" data-source="post: 868934" data-attributes="member: 12952">[h=2]<a href="http://biggovernment.com/dmitchell/2011/08/20/when-an-american-company-redomiciles-to-the-cayman-islands-what-lesson-should-we-learn/" target="_blank">When an American Company Redomiciles to the Cayman Islands, What Lesson Should We Learn?</a>[/h]Another American company has decided to expatriate for tax reasons. This&nbsp; process has been going on for decades, with companies giving up their&nbsp; U.S. charters (a form of business citizenship) and redomiciling in&nbsp; low-tax jurisdictions such as Bermuda, Ireland, Switzerland, Panama,&nbsp; Hong Kong, and the Cayman Islands.The companies that choose to expatriate usually fit a certain profile (this <a href="http://danieljmitchell.wordpress.com/2010/07/17/americans-voting-with-their-feet-to-escape-obama-tax-oppression/" target="_blank">applies to individuals as well</a>).&nbsp; They earn a substantial share of their income in other countries and&nbsp; they are put at a competitive disadvantage because of America’s&nbsp; “worldwide” tax system.&nbsp;More specifically, worldwide taxation requires firms to not only pay&nbsp; tax to foreign governments on their foreign-source income, but they are&nbsp; also supposed to pay additional tax on this income to the IRS – even&nbsp; though the money was not earned in America and even though their&nbsp; foreign-based competitors rarely are subject to this type of double&nbsp; taxation.&nbsp;In this most recent example, an energy company with substantial operations in Asia moved its charter to the Cayman Islands, as <a href="http://www.digitaljournal.com/pr/395990" target="_blank">reported by digitaljournal.com</a>.Greenfields Petroleum Corporation…, an independent&nbsp; exploration and production company with assets in Azerbaijan, is pleased&nbsp; to announce that the previously announced corporate&nbsp; redomestication…from Delaware to the Cayman Islands has been&nbsp; successfully completed.
Because it is a small firm, the move by GPC probably won’t attract&nbsp; much attention from the politicians. But “corporate expatriation” has&nbsp; generated <a href="http://www.heritage.org/Research/Commentary/2002/05/Bad-Tax-Policy-You-Can-Run133" target="_blank">considerable controversy in recent years</a> when involving big companies such as Ingersoll-Rand, Transocean, and Stanley Works (now Stanley Black &amp; Decker).</blockquote>

[QUOTE="Babagounj, post: 868934, member: 12952"] [h=2][URL="http://biggovernment.com/dmitchell/2011/08/20/when-an-american-company-redomiciles-to-the-cayman-islands-what-lesson-should-we-learn/"]When an American Company Redomiciles to the Cayman Islands, What Lesson Should We Learn?[/URL][/h]Another American company has decided to expatriate for tax reasons. This process has been going on for decades, with companies giving up their U.S. charters (a form of business citizenship) and redomiciling in low-tax jurisdictions such as Bermuda, Ireland, Switzerland, Panama, Hong Kong, and the Cayman Islands. The companies that choose to expatriate usually fit a certain profile (this [URL="http://danieljmitchell.wordpress.com/2010/07/17/americans-voting-with-their-feet-to-escape-obama-tax-oppression/"]applies to individuals as well[/URL]). They earn a substantial share of their income in other countries and they are put at a competitive disadvantage because of America’s “worldwide” tax system. More specifically, worldwide taxation requires firms to not only pay tax to foreign governments on their foreign-source income, but they are also supposed to pay additional tax on this income to the IRS – even though the money was not earned in America and even though their foreign-based competitors rarely are subject to this type of double taxation. In this most recent example, an energy company with substantial operations in Asia moved its charter to the Cayman Islands, as [URL="http://www.digitaljournal.com/pr/395990"]reported by digitaljournal.com[/URL]. [INDENT]Greenfields Petroleum Corporation…, an independent exploration and production company with assets in Azerbaijan, is pleased to announce that the previously announced corporate redomestication…from Delaware to the Cayman Islands has been successfully completed. [/INDENT] Because it is a small firm, the move by GPC probably won’t attract much attention from the politicians. But “corporate expatriation” has generated [URL="http://www.heritage.org/Research/Commentary/2002/05/Bad-Tax-Policy-You-Can-Run133"]considerable controversy in recent years[/URL] when involving big companies such as Ingersoll-Rand, Transocean, and Stanley Works (now Stanley Black & Decker). [/QUOTE]

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