(Accounting Today, 9 May 2012) In Brief: A new bill to offer a tax credit for 20% of the cost of returning jobs to the US from overseas has been introduced in the US House of Representatives. The bill would also end deductions for organizations that send jobs out of the country. Our View: Many [...]
Read more(Wall Street Journal, 9 May 2012) In Brief: India will demand $3.75 billion in taxes, penalties and interest from Vodafone Group PLC if a law that permits retroactive taxing on overseas mergers is enacted, according to a senior government official. The country wants to collect the money for Vodafone’s $11.2 billion purchase in 2007 of [...]
Read more(Forbes, 26 April 2012) In Brief: The US House Ways and Means Select Revenue Measures subcommittee is reviewing the merits of expiring tax provisions, including subsidies for oil and alternative fuels, a tax break for NASCAR and other motor race tracks, and incentives for movie production, rum, investment companies. Our View: We don’t expect major [...]
Read more(Financial Times, 16 April 2012) In Brief: US corporate tax reform appears to have been placed on the political backburner, despite bipartisan agreement that an overhaul, including a cut in the tax rate, is needed. Lowering the tax rate will not come without trade-offs, such as ending $12 billion in business tax breaks per year [...]
Read more(Accountancy Age, 24 April 2012) In Brief: Although value-added tax is often the third largest cash flow item for companies, less than a quarter of tax departments responding to a recent global survey reported having VAT metrics in their performance goals. Companies may be unprepared for the global shift toward indirect tax as a revenue [...]
Read more(Reuters, 25 April 2012) In Brief: Demonstrators from the 99 Percent movement , an offshoot of the Occupy Wall Street demonstrations, protested the low taxes paid by the General Electric Co. during GE’s annual shareholders’ meeting. According to GE Chief Executive Jeff Immelt, the company’s tax rate in 2011 was 29%. The populist group plans [...]
Read more(CFO, 9 April 2012) In Brief: The US Internal Revenue Service took an average of 40.7 months to process the Advanced Pricing Agreements completed in 2011, up from 37.2 months in 2010. Fewer organizations are asking the IRS for the deals, which are designed to avoid issues with authorities over pricing of sales and services [...]
Read more(Financial Times, 18 April 2012) In Brief: The US corporate sector is pressuring US Treasury Secretary Tim Geithner to raise concerns about a proposed law in India that would retroactively tax business deals, such as M&A, that derive substantial value from Indian assets. Our View: Many businesses have a difficult time internally defining and formulating [...]
Read more(The Guardian, 4 April 2012) In Brief: UK tax authorities are investigating Amazon, according to documents filed by the online retail giant with the US Securities and Exchange Commission. The company pays corporate taxes in Luxembourg, its EU headquarters. Our View: Heads of Tax find their companies under unprecedented scrutiny from revenue authorities and legislators [...]
Read more(Council on Foreign Relations, 5 April 12) In Brief: US corporate tax reform is a complicated issue. This report from a New York-based international-affairs think tank sums up the latest reform proposals and the reasoning behind a complete overhaul of the tax code. Our View: Regardless of your position on specific legislation, we advise heads [...]
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