Tyco officials review Bermuda incorporation
PEMBROKE, Bermuda - Officials at Tyco International are looking at whether the conglomerate should relocate its headquarters from here to the U.S., a consideration that comes as the U.S. House and Senate look to bar companies located in offshore tax havens from bidding on federal contracts and Homeland Security related jobs.
According to a report in the Financial Times, Tyco board of directors member Jack Krol said the company is looking to economically justify its incorporation in Bermuda in 1997.
Company officials confirmed Tyco is taking a look at where the company should be registered, but that there are no current plans to make any changes and that it must make economic sense, according to the report.
Tyco incorporated in Bermuda in 1997 through its acquisition of ADT Security Services. By being incorporated here, the company has saved on some taxes it would have paid if incorporated in the U.S.
In recent months, other corporations that considered moving to Bermuda backed out of the plan after new legislation proposed prohibiting U.S. companies that set up shell operations in tax havens from bidding on some government jobs.
Stanley Works, which is now in the midst of buying Best Access, abandoned plans in August to relocate to Bermuda.