Deals with the subject of US companies which relocate offshore to take advantage of the tax differentials between countries following globalisation. Focuses on Stanley Works, an established Connecticut manufacturer which in February 2002 announced that it would relocate its legal domicile to Bermuda in order to increase cash flow and decrease tax payments. Describes the strong negative reactions in the USA to this intended reincorporation abroad - from unions, shareholders, the press, the US Treasury, politicians and commentators. Relates this storm of protest to the atmosphere in the US after the financial scandals and terrorist attacks of the early 21st century; although other companies had reincorporated outside the USA before Stanley Works, which eventually withdrew its reincorporation plan, none has since.
|Journal of Financial Crime
|Published - 2003