Playing with taxes...

As shown in Oracle 10K FY10, Oracle is still decreasing its overall Tax Income provisions going from 2313 M$ in FY08, 2241 in FY09, to 2108 M$ in FY10.
In the same period, the operating income jumped from 7844 to 9062 M$ !

Despite multiple litigations on this subject, Oracle managed again an incredible performance in tax savings.

The word "Tax" is written more than 300 times in the document. It is showing the impressive amount of energy invested in Tax optimisations. Tense negociations are held worldwide with various Tax autorities, and Oracle systems, Offshore Islands screens are definitly not making the game easier for local gouvernement control.

A few quotes :

[...]our ability to repatriate funds held by our foreign subsidiaries to the United States at favorable tax
rates;

Changes in tax laws or tax rulings may have a significantly adverse impact on our effective tax rate. For
example, proposals for fundamental U.S. international tax reform, such as certain proposals by President Obama’s Administration, if enacted, could have a significant adverse impact on our effective tax rate.

[...] We previously negotiated three successive unilateral Advance Pricing Agreements with the IRS that cover many of our intercompany transfer pricing issues and preclude the IRS from making a transfer pricing adjustment within the scope of the agreements. These agreements are effective for fiscal years through May 31, 2006. We have submitted to the IRS a request for another renewal of this Advance Pricing Agreement for the years ending May 31, 2007 through May 31, 2011. However, these agreements do not cover all elements of our transfer pricing and do not bind tax authorities outside the United States.

This month, Oracle France will have to pay tens of million Euros in settlement of a dispute with the French Tax ministry. Always the question of transfer prices.
Ten Million Euros will also benefit Oracle French Employees, through a mandatory rule called "Employee Participation".
A small victory on the very very long road for more progressive and equitable taxation - who needs to be cared about : simple citizens, small companies, or huge corporations ?

To be continued - Tax Justice Network.

Sharing the code of ethics goals

The FR Works council is beeing consulted on the code of Ethics and Business Conduct to be implemented in France. This code should be fully enforceable towards employees.
The exposed principles are quite legitimate as they define what a responsible employee in a responsible company should do.



Responsible company ?
We face very opaque compliance protocols, as employee reps cannot control the ethics alerts nor allow any investigation rights on non compliances issues.
The company refuses to answer any questions regarding offshore operations, non compliance alerts.
Very strict SEC requierements are to be enforced to guarantee governance rules in terms of corruption, local law compliance, fair treatement and reporting.
We feel the lack of a World Wide Employee Works council independant control is a very important flaw, and we feel dangerous operations could still be conducted, "under the radar screen" in confined areas of huge corporations like Oracle.

Let's not forget Delaware, Cayman Islands, Mauritus, Luxembourg operations actually beeing run by Oracle - Who is in charge of controlling what's been done there ?
Are shareholders and employees to be proud of those covert operations ?

CFDT Oracle Labor union requests a worldwide employee governance model that enforces long term operations, fully compliant in any area of the company.

You want discuss, you have doubts about ethics management, you wish to submit a whisleblowing alert thought us, we'll help.


Read more : Secrecy Juridictions, Tax Justice Network, Sarbanes Oxley Structural Model by R. Moberly,

Oracle Tax Haven Operations

One of our reader brought this very interesting internal document to our attention.
Please consider the paragraph starting with "Risks Identified".

Isn't it time for a Corporation to pay its tax to local countries like any normal company does ?
Isn't it time for more social leadership and less social marketing ?
Isn't it time for more employee dialogue ?

Read More : TaxJustice Blog, CFDT Labor Union Oracle Tax Video, Congress 1265 Bill, Delaware,

Comments welcome !

Pittsburgh G-20 Process Must Tackle Banking Secrecy, Illicit Financial Flows

Employee reps are constantly beeing refused access to informations regarding Oracle offshore operations.
We do support the "Global Financial Integrity" call to urge leaders to pursue measures to increase transparency in global finance and curtail illicit financial flows.
Why would there be such a secrecy, with autonomous computer networks not linked to the main Oracle Intranet, and impressive firewalls ?
Why would an honest company still need so many holdings in Haven Islands ?

We know for sure Oracle CAPAC is driving key operations to prevent country tax authorities to challenge zero or near zero withholing rates applied.
An other example, France Tax authorities are conducting a 6+ years revenue recognition review, challenging the operating cost transfer ratios used by the company.

It's time for an higher morale in Corporations !

Any information, idea on your side, other examples regarding those operations please contact us. We will guaranty your anonymity :

Beeing Fair - Oracle Ethics

Oracle Ethic duties are enforced in many levels, and we all periodically receive the "training refresh" workflow reminders. These duties have already led to employee dismissals.

However you need to be aware that Oracle Corporation is leading many Oracle Holdings in Cayman islands, Mauritus, Luxembourg.

Why would such dark accounting subs be of any interest for a bright Sarbanes Oxley compliant company ?

Layoff times are a crude reality.
The whole of Europe and the CFDT labor union are very dubious about those subs, in a time where highest morale is due to be held worldwide.
We cannot let money flows run lonely without any accountability nor employee nor governemental control.

We encourage every employee and employee rep to enquire for a clear undestanding of those haven holdings activities.

BEA CrossGain International		Cayman Islands
BEA International		Cayman Islands
Oracle International Holding Company		Cayman Islands
PeopleSoft C.I. Holdings Ltd.		Cayman Islands
SPL WorldGroup International Ltd.		Cayman Islands

Oracle Holding Antilles NV
Oracle Global Mauritus Ltd.

Please report any misconduct or ethics violation to our collective for a transparent employee driven investigation - Contact us :


The Stop Tax Haven Abuse Act
SEC Report (free account needed), Commercial Ethics Guide, FR Alter Eco CAC40 and offshore islands,
World Bank Policy, The Stop Tax Haven Abuse Act