May 21 (Reuters) – Eaton Corp’s purchase of electrical
equipment maker Cooper Industries means another U.S. company
will soon leave the United States in favor of relocating its
headquarters to a foreign country with sharply lower taxes.
In the case of diversified industrial manufacturer Eaton
, a complicated corporate structure will allow it to
become part of an Irish corporation and enjoy that country’s low
12.5 percent corporate tax rate.
Reuter’s tax columnist David Cay Johnston appeared on the most recent episode of Real Time with Bill Maher, on the same panel with anti-tax activist Grover Norquist.
To see the whole show, you have to be a subscriber to HBO or HBO go, but here’s a clip from the “overtime” section of episode 248 including tax commentary, a discussion of J.P. Morgan’s loses, and much more politics both old and new.
Some important tax and accounting dates in the week ahead:
Tuesday, May 8
U.S. Senate Finance Committee hearing considering the nomination of Mark Mazur to be an Assistant Secretary of the Treasury, Matthew Rutherford to be an Assistant Secretary of the Treasury, and Meredith Broadbent to be a member of the United States International Trade Commission, to start at 10 a.m. EDT in Room 215, Dirksen Senate Office Building.
Two subcommittees of the U.S. House Ways and Means Committee joint hearing on tax fraud involving identity theft, to start at 10 a.m. EDT in Room 1100, Longworth House Office Building. Steven Miller, IRS Deputy Commissioner for Services and Enforcement, and Patrick O’Carroll, Social Security Administration Inspector General, will be witnesses, among others.
When Facebook issued its original prospectus in February we wrote about how the expensing of options would sharply reduce the tech giant’s tax bill in the near future.
Now that it’s closer to IPO time, the company has put out fresh information on the impact its mega-offering will have on the company’s annual bill from Uncle Sam, and it’s even bigger than was thought.
The bribery scandal at Wal-Mart Stores Inc’s Mexican unit is unlikely to land the giant retailer’s auditor, Ernst & Young, in hot water if the government’s record on prosecuting such cases is any indicator, academics and other experts said.
Some important tax and accounting dates in the week ahead
Monday, April 30
* The U.S. Internal Revenue Service hearing on limited partnerships and taxpayer participation, to start at 10 a.m. EDT in the IRS Auditorium.
* American Institute of Certified Public Accountants (AICPA) three-day conference on investments, auditing and tax questions, compliance fundamentals, internal control, and healthcare reform, Atlanta. U.S. Assistant Secretary of Labor Phyllis Borzi will speak.
* AICPA two-day conference on tax strategies for high-income individuals, Belagio Hotel, Las Vegas.
Tuesday, May 1
* The D.C. Bar Taxation Section Real Estate Committee luncheon program, IRS officials Sam Kamyans and Rosty Stiller to speak.
(Reuters) – Amazon.com agreed to begin collecting sales tax in Texas on Friday, forging a deal that promises to bring more jobs to the southern U.S. state and as the online marketer lost another round in a series of state-by-state sales tax battles.
The agreement, to take effect on July 1 for Texas’ 6.25-percent sales tax, follows another accord reached with Nevada earlier in the week to begin collecting that state’s 8.1 percent sales tax on January 1, 2014.
WASHINGTON (Reuters) – A conservative group that promotes legislation in state capitals is mainly a lobbying organization and should not benefit from a special tax status meant for charities, a liberal group says in a complaint to the U.S. Internal Revenue Service.
The complaint, released on Monday, challenges the tax-law status of the American Legislative Exchange Council (ALEC) as a not-for-profit 501(c)(3) charity. That status lets ALEC avoid paying taxes and lets its supporters deduct their contributions.
Tuesday, April 24 - Comment letters due to the Financial Accounting Standards Board on its proposed update on accounting for intangibles
Wednesday, April 25
International Financial Reporting Standards (IFRS) Taxonomy Annual Convention in London.
The Senate Finance Committee has scheduled a hearing, “Tax Reform: What It Means for State and Local Tax and Fiscal Policy,” to start at 10 am in the Dirksen Senate Office Building.
House Ways and Means Oversight Subcommittee will hold a hearing on the impact of limitations on the use of tax-favored accounts to buy over-the-counter medication at 2:30 pm, the Longworth House Office Building.
Karin Gross of the IRS will speak on conservation easements at a luncheon sponsored by the D.C. Bar Taxation Section Exempt Organizations Committee.
Thursday, April 26
* House passes Republican business tax cut. Kim Dixon – Reuters. The Republican-controlled House of Representatives on Thursday passed a tax break for small businesses, giving voters a stark alternative to President Barack Obama’s politically popular “Buffett Rule” surtax on the wealthy. In an escalating election-year war of words over taxes, the Republican measure, like the Buffett Rule, is not expected to become law. It is opposed by Democrats, who control the Senate, where the bill was expected to die. Link
* Olympus eyes fresh start, ex-CEO mulls legal threat. Tim Kelly and Yoko Kubota – Reuters. Shareholders of Olympus Corp approved a new board on Friday, hoping for a fresh start at the camera and medical device maker that hid $1.7 billion of investment losses in Japan’s biggest corporate scandal in decades. While Olympus will hope the vote draws a line under a scandal that has wiped more than $4 billion off its market value, its former CEO and foreign investors, who own 25-30 percent of the company, have sought a change in a deep-rooted culture of cross-shareholdings and cozy ties between banks and boardrooms. Link