Mar 4, 2002
A number of big corporations are establishing headquarters on the Caribbean island of Bermuda. That’s not because they’ve suddenly started a business there. No. Most of them don’t even hold a meeting. They just set up a mail drop.
But it did save them a lot in taxes: Tyco International saved 400 million; Ingersoll-Rand saved 40 million dollars; Cooper Industries, 54 million dollars, etc.
Kate Barton, a tax partner at the accounting firm of Ernst & Young, said in a Webcast to clients: “Is it the right time to be migrating a corporation’s headquarters to an offshore location? And yet ... a lot of companies feel that it is, that just the improvement on earnings is powerful enough that maybe the patriotism issue needs to take a back seat to that.”
The corporations who call on us to sacrifice in the name of patriotism certainly sing a different tune when it comes to making more money.