Soap is soap

Press Release If it Looks like Soap, Smells like Soap, its SOAP DeVos’ Amway move to Bermuda was for no other reason than to avoid taxes LANSING- Today Michigan Democratic Party (MDP) Chair Mark Brewer refuted claims by GOP gubernatorial candidate Dick DeVos that he incorporated Amway’s Asian operations in Bermuda for no other reason than to avoid paying U.S. taxes. The DeVos campaign conceded yesterday that the Amway subsidiary moved to Bermuda, but in MIRS the campaign claimed it was “because it was a better place to do business.” An Amway/Alticor spokesman claimed the company moved there because it was more “stable.” But Amway never actually did any of their business in Bermuda. In fact, Michigan Law defines Bermuda as a country that is a “tax haven country.” Over the past two years the Michigan Republican Legislature has passed at least four different Michigan laws that define Bermuda as a “tax haven country” in two different ways: As used in this section, “tax haven country” includes a country with tax laws that facilitate avoidance by a corporation or an affiliate of the corporation of United States tax obligations, including Barbados, Bermuda, British Virgin Islands, Cayman Islands, Commonwealth of the Bahamas, Cyprus, Gibraltar, Isle of Man, the Principality of Liechtenstein, the Principality of Monaco, and the Republic of the Seychelles. [2005 PA 215 (SB 533)] [2005 PA 225 (HB 5047)] “Tax haven country” means each of the following: Barbados, Bermuda, British Virgin Islands, Cayman Islands, Commonwealth of the Bahamas, Cyprus, Gibraltar, Isle of Man, the Principality of Liechtenstein, the Principality of Monaco, and the Republic of the Seychelles. [2004 PA 327 (HB 5517)] [2005 PA 146 (SB 272) “The soap salesman is at it again using his ‘political license’ to pretend he moved Amway’s subsidiary to Bermuda for no other reason than to avoid taxes,” said Brewer. “Amway did not have any factory workers in Bermuda and their corporate headquarters were never there. Basically Amway had only a mailbox in Bermuda, but they say the reason they were a Bermudan company was not to avoid paying U.S. taxes?” According to a 1993 PR Newswire press release, Amway moved Bermuda in company name only and was still headquartered in Hong Kong. “Amway Corporation announced today the initial public offering of Common Stock of Amway Asia Pacific Ltd. (NYSE: AAP), a newly created Bermuda company headquartered in Hong Kong, which will be the exclusive distribution vehicle for Amway Corporation in Australia, New Zealand, Malaysia, Thailand, Taiwan, Macau and Hong Kong.” (PR Newswire, December 12, 1993) The headquarters never moved from Hong Kong to Bermuda, according to press reports and SEC filings.