Elroy,
They are not moving there for the weather or the wonderful scenery, I am sure you are right in that corruption is at the root of it all. It is the same with all these tax haven places; Panama, Aruba, Macau, and many others. And I suppose this will be a work in progress, I understand that HAL intends to sell or spin-off KB&R. In time they could do that with other US assets and then they could become a UAE holding company much easier. And in the meantime with the headquarters abroad there would be much less need to repatriate earnings back to the USA.
Once headquartered in Dubai local accounting rules and legal processes apply. I don't know a thing about the local circumstances in Dubai, but in some other similar places, say Panama or the Philippines, hiding from the IRS is no problem whatsoever. In Panama, for instance, a tax matter never rises above a misdemeanor because that is how tax avoidance is treated under Panamanian law. So, if the IRS wants to go after an American living there they must bring a civil action in the local courts and of course this can take forever and get nowhere. Even in Panama there is cooperation with the US on some things, like child porno and drug trafficing. But for a simple case of tax evasion, no dice.
But globalism really is a great engine of corruption all around, that is what it is all about. Once the money is offshore it can be used for any purpose. Wonder why USA pols are so attracted to the concept? Because they have been bought off, thats why.
Slagle |
