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Halliburton Will Move HQ to Dubai

Old 03-11-07, 02:01 PM
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Halliburton Will Move HQ to Dubai

http://www.chron.com/disp/story.mpl/ap/fn/4620179.html
DUBAI, United Arab Emirates Oil services giant Halliburton Co. will soon shift its corporate headquarters from Houston to the Mideast financial powerhouse of Dubai, chief executive Dave Lesar announced Sunday.

"Halliburton is opening its corporate headquarters in Dubai while maintaining a corporate office in Houston," spokeswoman Cathy Mann said in an e-mail to The Associated Press. "The chairman, president and CEO will office from and be based in Dubai to run the company from the UAE."

Lesar, speaking at an energy conference in nearby Bahrain, said he will relocate to Dubai from Texas to oversee Halliburton's intensified focus on business in the Mideast and energy-hungry Asia, home to some of the world's most important oil and gas markets.

"As the CEO, I'm responsible for the global business of Halliburton in both hemispheres and I will continue to spend quite a bit of time in an airplane as I remain attentive to our customers, shareholders and employees around the world," Lesar said. "Yes, I will spend the majority of my time in Dubai."

Lesar's announcement appears to signal one of the highest-profile moves by a U.S. corporate leader to Dubai, an Arab boomtown where free-market capitalism has been paired with some of the world's most liberal tax, investment and residency laws.

"The eastern hemisphere is a market that is more heavily weighted toward oil exploration and production opportunities and growing our business here will bring more balance to Halliburton's overall portfolio," Lesar said.

In 2006, Halliburton _ once headed by Vice President Dick Cheney _ earned profits of $2.3 billion on revenues of $22.6 billion.

More than 38 percent of Halliburton's $13 billion oil field services revenue last year stemmed from sources in the eastern hemisphere, where the firm has 16,000 of its 45,000 employees.

Cheney was Halliburton's chief executive from 1995-2000 and the Bush administration has been accused of favoring the conglomerate with lucrative no-bid contracts in Iraq.

Federal investigators last month alleged Halliburton was responsible for $2.7 billion of the $10 billion in contractor waste and overcharging in Iraq.

Halliburton last month announced a 40-percent decline in fourth-quarter profit, despite heavy demand for its oil field equipment and personnel.
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Old 03-11-07, 02:14 PM
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Is there any point you wanted to discuss?
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Old 03-11-07, 02:34 PM
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further proof that halliburton is evil, they are so evil they are more evil than micro$oft
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Old 03-11-07, 02:42 PM
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Again, I don't know what point the OP wants to discuss, but I think it is pretty awesome! Every time my company opens another office I see it as an opportunity. Opportunity for advancement sure, but also to live in a new area, visit new places, etc, etc. Wish my company operated overseas. We only go as far as Canada

I also think it is a smart move for a company that does business world wide to look at where it makes the most sense to have your corporate office. And in the end, it one of the biggest factors is money...

"Lesar's announcement appears to signal one of the highest-profile moves by a U.S. corporate leader to Dubai, an Arab boomtown where free-market capitalism has been paired with some of the world's most liberal tax, investment and residency laws."
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Old 03-11-07, 03:08 PM
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Sorry, I meant to add that I think it's great that a US corporation is willing to move closer to it's customers and supply chain.

It would be the equilivant of Toyota moving it's headquarters to North America.
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Old 03-11-07, 04:13 PM
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I wonder if they are forced to face Mecca five times a day.
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Old 03-11-07, 06:06 PM
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Originally Posted by ChiTownAbs, Inc

It would be the equilivant of Toyota moving it's headquarters to North America.
Actually I could see that happening. Why not? Toyota sells and MAKES a lot of cars here. I don't see why it would not be at least discussed. Tho more sales potential is someplace like China, maybe that would be the place to move.

We are working in a global economy....everything should be looked at.

BTW. I remember when JCPenney's moved their corporate HQ's out of NY and here to Texas. Talk about some culture shock for some! But hey, what makes sense from a business standpoint? NY could not or would not offer the space, the tax breaks, the labor market, that we could.

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Old 03-11-07, 06:12 PM
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So the U.S. will no longer collect corporate income taxes from them other than on whatever domestic operations they will still have here?
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Old 03-11-07, 07:10 PM
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I would imagine that's the case.
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Old 03-11-07, 07:30 PM
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I'm guessing that the bulk of the work Halliburton is doing is over in the ME, so this move makes a lot of logical sense for them. Kind of a waste to be flying their reps halfway across the world to conduct business all the time.
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Old 03-11-07, 07:40 PM
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Originally Posted by X
So the U.S. will no longer collect corporate income taxes from them other than on whatever domestic operations they will still have here?
I'm actually taking a continuing education couse and the current chapter is on taxes including corporations. I don't remember it saying anywhere anything about where the corporate office is based. Not sure how that all works out. How is DaimlerChrysler taxed as a corporation? Use to be a solely owned American company, now it is not. Isn't their corporate office now in Germany?

I imagine these multi-national companies and/or companies that do business world wide, set up some sort of a sub-company in each country and pay taxes based on the busines of that sub-company. Course I'm just guessing here.
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Old 03-11-07, 07:59 PM
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I would like to be in Dubai the 31st of this month.

Will anyone care to provide for my expenses?
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Old 03-11-07, 08:23 PM
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Originally Posted by Sdallnct
I'm actually taking a continuing education couse and the current chapter is on taxes including corporations. I don't remember it saying anywhere anything about where the corporate office is based. Not sure how that all works out.
There is a reason that a lot of U.S. companies claim their headquarters are in the Bahamas, and it's not because of the nice beaches.
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Old 03-11-07, 08:36 PM
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Originally Posted by Mr. Salty
There is a reason that a lot of U.S. companies claim their headquarters are in the Bahamas, and it's not because of the nice beaches.
But their must also be disadvantages and other issues or all companies would do it, if it gets them off free and clear.
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Old 03-11-07, 09:42 PM
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Originally Posted by Sdallnct
But their must also be disadvantages and other issues or all companies would do it, if it gets them off free and clear.
Well, there is the bad publicity of raping the US taxpayer.

Hundreds of them do it anyway.
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Old 03-11-07, 11:28 PM
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Good to know all the money we taxpayers will be giving to Halliburton via no-bid contracts won't be getting funneled back into our economy via those nasty taxes.
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Old 03-11-07, 11:56 PM
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Originally Posted by TheMadMonk
Good to know all the money we taxpayers will be giving to Halliburton via no-bid contracts won't be getting funneled back into our economy via those nasty taxes.
Do we know that?

I thought we hadn't determined that yet.
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Old 03-12-07, 12:30 AM
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Originally Posted by Sdallnct
I'm actually taking a continuing education couse and the current chapter is on taxes including corporations. I don't remember it saying anywhere anything about where the corporate office is based. Not sure how that all works out. How is DaimlerChrysler taxed as a corporation? Use to be a solely owned American company, now it is not. Isn't their corporate office now in Germany?

I imagine these multi-national companies and/or companies that do business world wide, set up some sort of a sub-company in each country and pay taxes based on the busines of that sub-company. Course I'm just guessing here.
You might not be taking the specific course which deals with taxes. Corporations often have their HQ outside of US shores to avoid taxes. Basically what Mr. Salty said. Companies don't HQ overseas because of the nice foreign folk and a wonderful new culture experience.

Halli has been in business for how long. And they just decided to HQ now? This move has to do with looking ahead and foreseeing a shitload of taxes coming due.

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Old 03-12-07, 01:14 AM
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So a company like Honda America has to pay no corporate taxes? I find that hard to believe. But maybe. Guess they pay all the taxes in Japan?
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Old 03-12-07, 01:16 AM
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Originally Posted by DVD Polizei
I wonder if they are forced to face Mecca five times a day.
Not in Dubai
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Old 03-12-07, 01:41 AM
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OK a I guess they do move over seas to more favorable tax issues. This is an old article about the feds trying to stop that,

http://www.commondreams.org/headlines03/0527-08.htm

I still really don't have a problem with the move. Maybe the US should offer corporations better tax incentives to stay. Again, global economy so companies are going to go where it benefits them the most.
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Old 03-12-07, 07:40 AM
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I still really don't have a problem with the move. Maybe the US should offer corporations better tax incentives to stay/
Wrong approach - they should tax the hell out of them if they leave.
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Old 03-12-07, 10:53 AM
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Originally Posted by classicman2
Wrong approach - they should tax the hell out of them if they leave.
Yea, stiffle the free market...always a good idea. Or is a free market only ok if it benefits the US?

It is ok for JCPenney's for example to move from NY to Texas cause we threw land and tax encentives at them, but not ok for a country overseas to do it?
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Old 03-12-07, 11:19 AM
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The free market is a myth. It doesn't exist.

Moving from the U.S. to UAE is somewhat different than a company moving from NY to Texas - wouldn't you agree?
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Old 03-12-07, 11:24 AM
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For one thing, ALL of Halliburton's government contracts would have to be revaluated on the basis of national security.
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