Tax Break

Essential reading: Cadbury gets tax bill in India, and more

March 6, 2013

Welcome to the top tax and accounting headlines from Reuters and other sources.

* 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

* Ex-Kirkland partner pleads guilty to underreporting taxes. Chard Bray – The Wall Street Journal. A former Kirkland & Eillis LLP bankruptcy and restructuring partner pleaded guilty to underreporting his taxes by more than $2 million on Tuesday. Link

* Sen. Mikulski urges IRS to help potential small-business tax fraud victims. Lorraine Mirabella – The Baltimore Sun. Sen. Barbara Mikulski urged the Internal Revenue Service to investigate potential fraud at a Harford County payroll company and called the agency to protect businesses that might have had their tax payments misdirected. Link

* L.A. election: Villaraigosa’s sales tax behind in early voting. The tax increase would bring sales taxes in Los Angeles to 9.5 percent, one of the highest rates in the state, and raise $200 million a year for the city treasury. Link

* It’s time to tax financial transactions. Katrina Vanden Heuvel – The Washington Post opinion. The tax so small it could be mistaken for a rounding error. If this were a tax on coffee, it would cost you $1 for every 800 cups you bought at Starbucks. Link

* The worst possible way to cut spending. Bruce Bartlett – The New York Times opinion. Republicans convinced themselves that because they remained in control of the House of Representatives, there was broad public support for their approach for spending cuts and no tax increases whatsoever. Link

* Sweetheart rates for corporations. Teresa Trich – The New York Times opinion. When poor women and children may lose access to federal food aid under the sequester, Chevron Corp’s tax subsidy involving “qualified private activity bonds” becomes a case study in misplaced priorities. Link

* The gas tax compromise. The Baltimore Sun editorial. Gov. Martin O’Malley’s gas tax plan wouldn’t represent our first choice in how best to pay for Maryland’s transportation needs. But it’s a better solution to a problem that has been nagging the State House for two decades. Link

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