Ethics question.

[martureo]

I'd like some opinion on this. I've been in a discussion with a few people concerning both the legal and ethical nature of a certain situation. I think it's both illegal and morally reprehensible, but quite of few others have disagreed with me.

Because I'm not an idiot I'm not going to give names, places, companies out. Therefore I have written out the details in such a way to give the full scope of the issue without revealing anything.


A friend's current employer offered her an overseas assignment in [a country], but told her that they would not pay her a salary while she would be there. Instead, her employer would cover the cost of her housing, her food, her car, and other incidental expenses, as well as paying for her to take an annual vacation and also paying for her children to attend an undergraduate program. Additionally, she would get a part time gardener, housekeeper and cook paid for through the same reimbursement system.

The company has told her, however, that she wouldn't be allowed to have a personal bank account in [a country] to handle the reimbursement funds, but that her employer would keep a joint account for her in the United States through which all of her household expenses (and the company's payment of them) would be processed as "reimbursements" on her behalf (by an account in her and the company name). She was told to agree to not represent to others that she will be paid for her services while in [a country], and that she is not to discuss the arrangement of the company paying her expenses with her personal financial advisors, nor with friends, nor with family, nor even with other employees who work in similar positions. Nor is she to report the reimbursements to either the IRS or Swiss tax authorities.

Does this sound kosher to any of you?