If this is a large and reputable company, then there isn't really any mysterious phenomenon going on here.

It's simple: the reason they are doing it is to leverage the laws.

So they are structuring the arrangement -- legally -- to avoid paying taxes either here or there. If it's a multinational company, then they probably know exactly what they are doing.

And I'm not sure why some are focusing on the reimbursements. Reimbursements for expenses incurred in business are deductible; they aren't income. There's nothing illegal about that. And the IRS is well aware that some multinationals take advantage of foreign laws in structuring arrangements. I can't imagine they are doing anything "funny" with her tax returns (or those with whom they have done this in the past).

In the big picture this is no different than what GE does with it's structured arrangements. That's one of the reasons they are pilloried for not paying much tax. But what is illegal about structuring a situation to take advantage of various loopholes?

So long as it is legal, then it's up to her to decide if it's immoral. Personally I wouldn't feel comfortable about being in a situation where I couldn't really establish any friendships, which she can't really do, since she can't be honest with anyone she meets over there. Perhaps this is why I never applied to the CIA, etc.