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DFW

(60,475 posts)
14. "Wholly owned, independent arm's length entities."
Tue Apr 16, 2024, 04:44 AM
Apr 2024

It's a common enough structure. For example, since the EU tries to tax any non-EU company on its worldwide income, many non-EU companies wishing to do business there purchase existing EU companies and keep them as completely independent, separate entities. Since it would be grossly unfair for the EU to tax, say, Arby's on its entire US income just because they opened two retail outlets in Frankfurt, Arby's (or whoever) would form "Arby's Deutschland" (or whatever), incorporate there, and let their German operation operate and be taxed where their business is. Whatever is left over after taxes, the owning company, Arby's USA (or whatever it's called) can either repatriate the profits or re-invest them for growth of the local business as they see fit. The owner company in the USA can not interfere with the independence of the foreign entity, or else the independence of the foreign entity could be challenged. Therefore, if Musk owns a company in a foreign country that has no sanctions with Russia, that company can do business with Russia with far less scrutiny. Musk could still get in trouble with the US authorities, but they'd have to do a thorough investigation to prove the connection before they can take action.

I have an ex-pat Iranian friend who has been living in Germany for almost all his life. His family still has a house on the Island of Kish, the Iranian Hong Kong, where Dick Cheney (now in the name of Halliburton) still owns a house. He said that Iran still does business with every country in the world except Israel, sanctions or no sanctions. They just go through third parties/countries.

Recommendations

2 members have recommended this reply (displayed in chronological order):

KICK orangecrush Apr 2024 #1
This way the Russians can block Ukraine from communicating on the battlefront... Deuxcents Apr 2024 #2
Elon Musk is dangerous. nt KPN Apr 2024 #3
Here is the title at the link. They are black market starlink. applegrove Apr 2024 #5
The DOJ's Criminal Division had better have a sitdown with Musk about the Foreign Corrupt Practices Act. ancianita Apr 2024 #17
I think when Musk claimed no knowledge... lame54 Apr 2024 #25
Typically when stuff gets on the black market the applegrove Apr 2024 #27
ford sold trucks to hitler both of them hated jews nt msongs Apr 2024 #4
They are blackmarket starlink. applegrove Apr 2024 #6
Black Market hardware Johnny2X2X Apr 2024 #16
You're right. Musk knows about it and is playing ignorant. ancianita Apr 2024 #18
C Y B E R Trucks are on the way! TeamProg Apr 2024 #12
Article... littlemissmartypants Apr 2024 #7
When I worked for a DOD contractor ... aggiesal Apr 2024 #8
There stuff ends up in the black market. I would think they should investigate applegrove Apr 2024 #10
OFAC FrankChurchDem Apr 2024 #20
If so, how are Musk evading the sanctions against Russia? DJ Synikus Makisimus Apr 2024 #9
Musk claims no involvement. applegrove Apr 2024 #11
What does no involvement mean? He's the CEO of the company right? Fla Dem Apr 2024 #15
He does not see any transaction on the black market. applegrove Apr 2024 #24
But he -does- know that recievers are operating in Russia. Shipwack Apr 2024 #31
Coca-cola is not sanctioned afaik unblock Apr 2024 #29
Something's not right about that. We didn't sell battle aids to the nazis in WWll. brush Apr 2024 #13
"Wholly owned, independent arm's length entities." DFW Apr 2024 #14
I think it is just buyers who resell stuff on the black market. No applegrove Apr 2024 #22
He is not. It is the black market. Musk has no control over that. applegrove Apr 2024 #23
misleading title from the link WarGamer Apr 2024 #19
SpaceX is required FrankChurchDem Apr 2024 #21
Excellent point. Unfortunately he still has a small number of devotees here who want to explain away everything. BannonsLiver Apr 2024 #26
Hardly a day passes we don't learn something else shady about Elon Musk. I wish he'd been in the driver's ... marble falls Apr 2024 #28
So... Let me get this straight. Shipwack Apr 2024 #30
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