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To: Slagle who wrote (15304)	3/13/2007 3:29:24 PM
From: Elroy Jetson	Read Replies (1) \| Respond to of 217906

If the Halliburton employees are UK citizens, they will not pay UK taxes on their income once they have been out of the UK for 366 days. Unfortunately, there is no comparable tax savings for US citizens, not even for the ten year period after they renounce their US citizenship. US law changed in this regard shortly after John Templeton renounced his US citizenship and moved to the Bahamas. Any alleged major "tax breaks" which you have heard about are merely felony tax evasion rather than a break in US tax law. Perhaps all Halliburton employees in the UAE will "forget to file their US taxes". In this event, the lack of an extradition treaty with the US will be highly advantageous. But this means there is no going back. This would also place Halliburton's assets in the US in jeopardy. There are certain benefits for foreign employees such as the right to a delay in filing taxes in certain situations, but none of these amount to any kind of major savings. An a US corporation, headquartered in the US, Halliburton enjoyed a postponement of taxes on income derived from their foreign subsidiaries until that income was repatriated. Moving their headquarters does nothing to change this. Halliburton has said they do not intend to become a UAE corporation, they are simply moving their headquarters. If Halliburton chooses in the future to become a UAE corporation, regardless of whether their headquarters remained in Texas or was moved to Russia, their corporate tax treatment would change, but there will be a major price paid for this upfront, with additional costs in the future. In the interim, the UAE has no extradition treaty with the US, which Halliburon may need for other than tax reasons. .

To: Slagle who wrote (15304)	3/13/2007 7:14:53 PM
From: Slagle	Read Replies (2) \| Respond to of 217906

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