Seagate relocating from Cayman to Ireland

| 03/02/2010

(MercuryNews.com): Seagate Technology’s Board of Directors hopes to move the company’s legal headquarters from the Cayman Islands to Dublin, Ireland, a tax savings-related measure that is expected to have little impact on the company’s long-standing Scotts Valley corporate presence. In a 219-page proxy statement filed with the Securities and Exchange Commission Monday, Seagate directors cited increasing negative publicity surrounding US companies that don’t pay US taxes by incorporating in countries like the Caymans. New legislation could increase Seagate’s tax burden if it remains a Cayman company.

Go to article

Category: Business

Comments (23)

Trackback URL | Comments RSS Feed

  1. Da player says:

    Alden said expats said this crisis is being use for their advantage to remain here he apparently overheard this at the business expo recently.

  2. Anonymous says:

    We are seeing the rippling effects in the private sector. Here’s a breakdown:

     
    Walkers struggles, restructures its organization, and cut jobs – Cayman’s largest and oldest off-shore firm.
     
    Reason:  Firm says, “This economic crisis has severely affected a number of our clients, which, coupled with the targeting of offshore financial centres from the OECD and G20 countries, has resulted in a need to restructure the group as a whole” (see 17-Nov-09 article)
     
    Citi Hedge Fund Services (Cayman) Ltdcuts some 22 jobs from its local office, and denies to Cayman 27 that the current cut to staff  means it is exiting the islands altogether
     
    Reason: Cut costs and increase operating efficiencies due to the global economic crisis.
     
    Rothschild Trust – The name “Rothschild” bearing one of the world’s richest families, mysteriously pulls out from Cayman.
     
    Reason: David McLellan says to Wealth Bulletin:  "Our decision is based on our continued drive to provide an exceptional level of service to clients and to improve operational efficiency” (see 1-Dec-09 article)
     
    LOM (Holdings) Limited by 31/March, 2010 plans to pack their bags and go.
     
    Reason: The global economy and “doubling” of Cayman’s license/permit fees within the past five years.
     
    UBS, which is the world’s second largest manager of private wealth assets, and the second-largest bank in Europe, may this year collapse and go out of business in the Cayman Islands.
     
    Reason: If it does not hand over information on some 4,500 account holders to US tax police, its licence with the United States will be revoked.
     
    And leaving us now is…
     
    Seagate Technology, the world’s largest hard drives and storage solutions manufacturer, based in Cayman.
     
    Reason: To move to Ireland, a tax savings-related measure due to the negative publicity surrounding US companies that don’t pay US taxes by incorporating in countries like the Caymans Islands.
     
    So these changes in the financial industry, except LOM, have nothing to do with our Government increasing duties and fees – right?
    • WOW!!! says:

      Walkers – the problems run a lot deeper XXXX the big white elephant of an office building looms in the distance…  Bad timing to have built such a palace just before a WORLD economic collapse…

      CitiHedge – have you even noticed that CITI is one of the hardest hit in the ECONOMIC COLLAPSE???  Perhaps this could be, oh, I don’t know, downsizing and closing non-proftable units???  FYI, @$$hole – share price May 2007 – $55+- TODAY – $3.22 AT CLOSE…  Refelcts the drop in value…

      Rothschilds – hmmmm…  Precisely how many people did they have here?  They had a name and a small pocket – less than a handfull of staff…  Go, go go go…

      LOM – running ’cause their business is built on tax evasion and they know that as Cayman starts to comply, they stand to be caught in the net…

      UBS – Check out their US problems – they may not even be a bank soon if they don’t back down – the US is shutting them out, so they will become the worlds largest village bank…  LOL.

      Seagate – WOW – read the article, SHERLOCK – they didn’t even have an office or a SINGLE employee – this was one of them name plaques – they said it themselves…

      Giving you the benefit of the doubt, when a reptable, physically present company moves,then we can talk – but remember, one swallow does not a summer make – so better bring more than one, you know, a pattern of movement by REAL, REPUTABLE firms will be worrying…  WHEN IT HAPPENS…

      • Gloomndoom says:

        WOW may have an arguement but Cayman’s profile is encouraging Governments to pressure Cayman companies to relocate. Two major insurance companies have done just that recently. Whilst they did not employ staff here some services were provided.If we keep losing companies we will reduce the service providers and by the way some of the accounting firms are releasing staff.

        The cost of doing business here is out of order but with the Premier’s vaste expertise in the finance business through his postion at First Cayman Bank, what do you expect. The position of Minister of Finance must go to Rolston. At least he understands the business.

        Cayman must have immediate changes otherwise we are doomed.

  3. Anonymous says:

    Think of the seriousness of this trend and all of the other matters facing Cayman.The crime, the stalled economy etc. Yet the premier is racking up the frequent flier miles thinking he is a world leader. The  deputy premier has time to be concerned about which civil servants wear red in Cayman Brac.

    Those two are going to cure many of our current problems.  By the time their term is finished, there will be no more worrying with grey list or white list (no more companies) no crime ( nothing left to steal), no expats ( no jobs) no drugs (no money) everybody will be in church (praying for better times) and  no traffic ( no one will be able to afford a car or gas). Thanks for leading us back to about 1900

     

    • Dacat says:

      If thats what its going to take to get our dignity and respect back and you bunch of pirates to push off here it would be well worth the hardships we will have to endure. Better to die from poverty than to be a slave to your materialism. I know you will try and take it with you in the next life.

  4. noname says:

     THe BIG Immigration Lie as we suspected, once again we see another company skipping out of here as we always knew they would, when the going got tough and the chips are down and the grass is looking greener somewhere else.. These people are here for the money Cayman nothing else as soon as we get that in our silly little heads the better off we will be and stop  listening to this Hocus Pocus crowd of Political benefactors telling uslies and who now are trading our birth right for their comfort.  Good riddance and take the liars with you when you leave.

    • frank rizzo says:

      This has nothing to do with Immigration, implied nor inferred. You are comparing apples to oranges.

      • Leagle Beagle says:

        How can you live in Cayman and have no idea how offshore or the local economy works?  (I don’t mean the illustrious Frank R, I mean the numpties who have posted on the board before him).  The Realist is in la la land.

    • Anonymous says:

      Reply to The Big Immigration Lie as:

      Of course these companies are in Cayman for the money.

      That’s what they do, any company is in it for the money.

      Simple fact is if they are not making money or the cost of doing

      business gets too high. They will move on ”real quick” and eliminate

      a lot of jobs Caymanian and Ex-pat jobs.

      If a lot of companies leave Cayman the Caymanians will suffer the most,

      they are left with no jobs  and no prospects.  The expats just move on

      somewhere else. The loss of all these employed people will trickle

      down to cut the profits of everyone especially the small Caymanian

      businesses  who are  trying to make a living.

      This government has a challenge ahead of them to lure and keep

      companies on the island. Hope they are up to it!!

       

       

       

  5. A REALIST says:

    That company was only here on paper. A loss but a small one. Losses in gov’t fees of a few hundred a year and lost revenue to a law firm/company manager and thats it. They didn’t employ anyone.

    A loss but not a great one.

    • Anne F. Shaw-Pearson says:

      It shows how the Cayman brand is now a liability in the eyes of US companies.  This marks a real threat to many many jobs in Cayman.

    • frank rizzo says:

      Death by a thousand cuts or a single GSW, you are still just as dead. Those small losses will add up to significant revenue decreases and lost jobs.

    • Anonymous says:

      Oh, well that makes it alright then does it?  I work in finance, and I can tell you that many of our clients are reconsidering Cayman now that they have learnt how much its now going to cost them to stay in Cayman due to the increased anuual and other fees.  This seems to be a common ‘knee jerk’ reaction since the introduction of the new fees. 

      This is just the tip of the iceberg.

  6. nonsense says:

    "The existence of a tax treaty between Ireland and the U.S. will help minimize the company’s tax burden in the future, according to Seagate."

    Incentive like this will make it an easy decision. Wonder if other companies might follow suit.

  7. Drip drip says:

    The holes in the dyke are slowly getting bigger.  Cayman’s future is looking worse.

  8. Anonymous says:

    who?

    • Anonymous says:

      Who? One is to many, when will everyone take notice, when a massive company employing lots of caymanian’s leaves? Stop trying to attract new companies and try and keep the ones that have kept this economy going for years… please before it is to late for ALL of us..

      • Anne F. Shaw-Pearson says:

        Actually Seagate does not employ anyone directly here.  The worrying thin is that the negative PR reputation of Cayman is forcing organisations to relocate away.  This will cost fees and, more importantly threatens offshore services jobs which drive our economy.  This is a real threat to Cayman’s future.

    • Says a lot says:

      That comment say a lot about the business nouse of some of the posters on CNS.  They only happen to be the biggest producers of hard drives in the world.  However posted "who" please don’t post on business related issues again – you clearly know nothing.

      • Anonymous says:

        Whoa easy Says a lot…did Seagate just fire you or did you use google and are now all high and mighty…hope you haven’t lost any sleep over this…lol

        • Says a lot says:

          You know I just happen to know about some of the most important companies in the world.  You obviously do not and your post makes you sound like a complete hick.

    • Anonymous says:

      Seagate Technology