* India says Cadbury evaded taxes. Joe Palazzolo and Julie Jargon – The Wall Street Journal. India has accused Cadbury PLC of dodging about $46 million in taxes by pretending to produce candy at a factory that didn’t exist. Link
* Obama recruits Republicans for budget talks with personal calls. Jonathan Weisman – The New York Times. President Barack Obama spoke around noon Tuesday with Senator Lindsey Graham for about 10 minutes and both agreed that a major deal could be reached that raises revenues by closing tax loopholes. Link
* A stealth tax subsidy for business faces new scrutiny. Mary Williams Walsh and Louise Story – The New York Times. This valuable tax break — the ability to finance a variety of business projects cheaply with bonds that are tax exempt — has not only endured, it has grown, in what amounts to a stealth subsidy for private enterprise. Link
* Wegelin’s fall to tax-haven poster child. Reed Alberotti – The Wall Street Journal. In the span of just one year, Wegelin & Co. went from being one of the most prestigious banks in Switzerland to the verge of being sentenced on U.S. criminal charges and becoming essentially defunct. Link
* Republicans cling to one thing they agree on: Spending cuts. Richard Stevenson – The New York Times. Aware that conservatives could never accept a second round of tax increases this year, Republicans judged that the better course was to take on the economic and political risks associated with the automatic spending cuts. Link
WASHINGTON (Reuters) – Legislation has stalled in Congress that would help the Internal Revenue Service fight a wave of tax refund fraud, prompting one Florida lawmaker to appeal for more action.
Democratic Representative Kathy Castor, whose Tampa district is an epicenter for tax refund fraud, introduced a bill in February that would allow the IRS to share more tax information with local police.
* Law on tax changes is struck down in Washington State. Kirk Johnson – The New York Times. A voter-approved referendum restricting the Legislature’s ability to raise taxes is unconstitutional, Washington State’s highest court ruled on Thursday. Link
* Britons shun companies over tax avoidance. Vanessa Houlder – The Financial Times. A third of Britons are boycotting companies that do not pay their “fair share” of tax in the UK, according to a survey by a charity that described the findings as “a wake-up call to all business”. Link
* White House counts on G.O.P. to bend on cuts’ effects are felt. Michael Shear – The New York Times. White House strategists say they believe that a constant drip of bad news will emerge in Congressional districts across the country in the weeks ahead, putting Republicans on the defensive for their refusal to raise taxes. Link
* Dividend recaps set to dwindle in 2013: Moody’s. Maxwell Murphy – The Wall Street Journal. Moody’s Investors Service expects fewer dividend recapitalizations this year compared to 2012, when companies rushed to distribute cash to shareholders ahead of expected tax hikes. Link
WASHINGTON (Reuters) – The U.S. Justice Department said on Wednesday it has won a $1 billion tax shelter case against Dow Chemical Co (DOW.N: Quote, Profile, Research, Stock Buzz) that involved a Swiss partnership, Wall Street financial giant Goldman Sachs (GS.N: Quote, Profile, Research, Stock Buzz) and international law firm King & Spalding.
The U.S. District Court for the Middle District of Louisiana rejected two tax shelter transactions entered into by the Dow Chemical Co “that purported to create approximately $1 billion in phony tax deductions,” Justice said in a statement.
WASHINGTON, Feb 27 (Reuters) – The U.S. Justice Department
said on Wednesday it has won a $1 billion tax shelter case
against Dow Chemical Co that involved a Swiss
partnership, Wall Street financial giant Goldman Sachs
and international law firm King & Spalding.
The U.S. District Court for the Middle District of Louisiana
rejected two tax shelter transactions entered into by the Dow
Chemical Co “that purported to create approximately $1 billion
in phony tax deductions,” Justice said in a statement.
WASHINGTON, Feb 27 (Reuters) – U.S. tax authorities and
foreign governments are on track to conclude dozens of
agreements in coming months on the sharing of financial data
about citizens, with deadlines nearing for implementation of a
sweeping U.S. anti-tax-evasion law, tax experts said.
The U.S. Treasury on Monday initialed an intergovernmental
agreement (IGA) with Germany, for instance. The deal still needs
final approval by both countries’ tax officials, but shows
progress being made in implementing the Foreign Account Tax
Compliance Act (FATCA).
* A new European tax on financial transactions is set to go global. Howard Schneider – The Washington Post. The levy is due to take effect next year and will be a significant money-raiser for the 11 nations that have signed on, bringing in an estimated $45 billion annually. Link
* Institutions to stay alert to signs of tax fraud. Ben DiPietro – The Wall Street Journal. The Financial Crimes Enforcement Network issued an advisory Tuesday reminding financial institutions to look for red flags that may indicate instances of identity theft and tax fraud. Link