Another US Company To Shift Incorporation From Bermuda

NEW YORK/LOS ANGELES, USA (Reuters) -- Technology outsourcing and consulting firm Accenture Ltd said on Tuesday it plans to change its place of incorporation to Ireland from Bermuda, joining an exodus of large US companies as the US government plans to tighten tax rules.

Accenture said 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, it said.

Accenture Chief Executive William Green. AFP PHOTO

"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.

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, ahead of legislation aimed at tightening rules that allow firms to defer tax payments on overseas profits if earnings are plowed back into foreign subsidiaries.

Countries like Ireland and Switzerland, which have tax treaties with the United States, are seen likely to benefit. Companies like Tyco International Ltd and Tyco Electronics Ltd, Weatherford International Ltd (WFT.N) and Foster Wheeler Ltdhave also announced plans to move to incorporate in Europe.

Accenture added that it plans to stay registered with the US Securities and Exchange Commission and that it expects the move to take effect shortly after shareholder approval. Shareholders will vote on the move at meetings within the next three to four months, it said.

Accenture said it has a 40-year history in Ireland, with various clients including the Irish government.