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Technology Stocks : VISIO Corp (VSIO): Big ISO 9000 Play -- Ignore unavailable to you. Want to Upgrade?

To: Harry Franks who wrote (253)	11/3/1998 9:06:00 AM
From: Grommit	Respond to of 522

Tax. Thanks to Harry for the tax rate answer and to Dan for finding that most of the reason for lower tax rate might very well be ongoing. I will look at this company with a different eye now.

To: Harry Franks who wrote (253)	11/3/1998 11:04:00 AM
From: Dan Spillane	Read Replies (1) \| Respond to of 522

The Headquarters for Visio International Operations is in Dublin, Ireland. Lookie what I found... visio.com What took us so long to understand turns out to be a case of outstanding tax planning on Visio's part! I'm really impressed...because of the nature of some of the International needs (EU, ISO9000, et. al.) which Visio software caters to, this seems like a great idea. Harry, when I click on your name I see some impressive credentials. Welcome to the Visio discussion room and thanks for filling in blanks where we couldn't. Dan Harry Franks said: What you are referring to is "subpart F" in tax terms. It means that certain types of foreign income (generally passive income) is taxed currently at the US rates (with a tax credit). But, take Dell for instance, when it opens a factory in Ireland (12% tax rate or thereabouts), that income does not fall into this "subpart F" exception and the income earned in Ireland is not currently taxed at the higher US rates. It will be taxed at the US rate only upon repatriation (i.e. through a dividend). Under US accounting rules, you don't have to "book" the higher US rate if you can convince your auditors that you have no intention of repatriating the income. Most companies will keep this low taxed income off-shore to finance further international expansion. Assuming continued growth this is the correct answer. Sorry this is technical. Regards, Harry