Tuesday, May 18, 2010

Oil spill rig offshore in more ways than one - Part II

We already noted how the Transocean rig that caused the latest oil spill flies a flag of convenience. Now the Associated Press has picked up on the fact that it is also, thanks to a recent (ish) corporate inversion, headquartered in the notorious Swiss canton of Zug.

Why? Well, tax seems key:

"The canton levies no tax on earnings generated abroad, and holding companies that receive their income in the form of a dividend from an offshore subsidiary are freed from paying Swiss federal tax as well."

But

"Only a dozen of Transocean's 18,000 employees work in Zug."

When will these abuses end?

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