Dec 21 (Reuters) – A senior official at the U.S. corporate
audit industry’s watchdog is downplaying speculation in some
quarters about a showdown looming at the end of the year with
Chinese regulators over audits of U.S.-traded Chinese companies.
Lewis Ferguson, a member of the Public Company Accounting
Oversight Board, told Reuters on Thursday that no action is
imminent and dialogue with China is “continuing.”
Democratic-voting blue states could face a greater economic fallout from any fiscal cliff resolution than their Republican red state brethren, according to a Dec. 17 white paper from municipal bond research firm eBooleant Consulting.
Entitled “The Blue State Tax Crunch,” the paper predicts a recession for these states even if a broad, country-wide recession is avoided.
Monday, Dec. 17
* Joint Board meeting of the U.S. Financial Accounting Standards Board and the International Accounting Standards Board on revenue recognition. Video webcast.
* U.S. Government Accounting Standards Board chair Robert Attmore addresses New York State Society of Certified Public Accountants Public Schools Committee. Albany, NY.
Dec 14 (Reuters) – A landmark agreement forged 45 years ago
to make corporate taxation more uniform among U.S. states is at
the center of a court fight between California and Gillette Co,
potentially leading to more tax conflict between states and big
Gillette, the razor giant owned by Ohio-based Procter &
Gamble Co, wants to be able to use the 1967 Multistate
Tax Compact (MTC) to determine how much tax it owes California.
This would cut Gillette’s 1997-2004 tax bill by more than $4
million. The company is seeking a rebate of taxes already paid.
(Reuters) – When associates at New York law firm Weil, Gotshal & Manges learned about their annual bonuses last month, the details came as a bit of a jolt – not because of the amount, but rather on account of the timing.
In a departure from recent practice, the firm said it would deliver the bonuses in January instead of December, according to an account in the legal blog Above the Law.
While the inhabitants of Capitol Hill and the White House argue over tax breaks for the wealthy, a member of Swaziland’s parliament has struck upon a potential partial solution to the cash crisis in Africa’s last monarchy: hike taxes on witch-doctors.
While tax negotiations continue on Capitol Hill, here are some additional important tax and accounting events in the week ahead:
Tuesday, Dec. 11
* Claudius B. Modesti, director of the U.S. Public Company Accounting Oversight Board’s division of enforcement and investigations, speaks to the New York City Bar Securities Litigation & Enforcement Institute. New York.
(Reuters) – Bain Capital has been leading private equity firms in using a controversial financing strategy to generate low-tax special dividends for itself and its investors for nearly the last decade.
A Reuters analysis shows Boston-based Bain had done more “dividend recapitalization” loans from 2003 through last June than TPG Capital LP TPG.UL, Blackstone Group LP (BX.N: Quote, Profile, Research, Stock Buzz) and other rival private equity firms.
Tuesday, Nov. 27 * U.S. Senator Dick Durbin, Majority Whip, speaks on the fiscal showdown and deficit reduction. 11:30 a.m. ET, Center for American Progress Action Fund. Washington.
Wednesday, Nov. 28 * Public Company Accounting Oversight Board open meeting on 2013 budget and strategic plan. Washington.
Just how important is it for public companies to post earnings that meet investors’ expectations? Important enough to knowingly pay more in taxes, according to a recent study by academics at Duke, MIT and UC Irvine, ”Incentives for Tax Planning and Avoidance: Evidence from the Field.”
It’s hard to get surprised about the idea that meeting or beting their earnings numbers is important to companies, but Duke Professor John Graham, an author of the paper, was surprised that the 600 corporate tax executives they interviewed overwhelmingly said they’d trade real hard cash paid to the government in taxes in exchange for a boost to the earnings number reported to shareholders.