New York/Los Angeles
The Times of India
Technology outsourcing and consulting firm Accenture Ltd plans to change its place of incorporation to Ireland from Bermuda, following an exodus of large multinational companies to Europe as the US government plans to tighten tax rules.
Accenture said on Tuesday it does not expect any material change in its financial results or tax treatment, but said Ireland will provide economic benefits. Its board unanimously approved the move.
"A member of the European Union, Ireland offers a sophisticated, well-developed corporate, legal and regulatory environment," Accenture Chief Executive William Green said in a statement.
A company spokesman said Accenture is also moving because of continued criticism of companies incorporated in Bermuda.
Several large companies incorporated in Bermuda and the Cayman Islands are eyeing a shift to Europe in search of more favorable tax treatment and other benefits. This comes ahead of US legislation aimed at tightening rules that allow firms to defer tax payments on overseas profits if earnings are plowed back into foreign subsidiaries.
Ireland is expected to benefit along with Switzerland as companies seek more hospital conditions in Europe.
Companies such as Tyco International Ltd and Tyco Electronics Ltd, Weatherford International Ltd and Foster Wheeler Ltd have also announced plans to move to incorporate in Europe.
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