Tax Break

Essential reading: Derivatives tax plan concerns industry, and more

April 12, 2013

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

*Derivatives-tax plan concerns industry. John D. McKinnon and Siobhan Hughes – The Wall Street Journal. The Obama administration’s proposal this week to change the way some derivatives are taxed signals common ground with Republicans on a potentially difficult and divisive tax issue that could have far-reaching implications for investors. Link

* Ex-KPMG auditor freed on $150,000 bond in tips-for-cash scheme. Emily Flitter – Reuters. U.S. authorities filed criminal and civil charges on Thursday against Scott London, who is accused of passing non-public information about five of KPMG’s clients to a friend. Link

* KPMG says it plans legal action. Michael Rapoport – The Wall Street Journal. KPMG LLP plans to take legal action against Scott London, its ex-partner accused of insider trading, said John Veihmeyer, the Big Four accounting firm’s chairman and chief executive. Link

* Insider trading probe impact on KPMG expected to be short-lived. Nanette Byrnes – Reuters. KPMG will suffer some financial and reputational damage from insider trading charges filed against a former senior audit partner, but significant legal liability for the firm was unlikely, said audit industry experts on Thursday. Link

* A plot twist at Herbalife draws in the auditors. Floyd Norris РThe New York Times. With KPMG gone, it will be interesting to see which firm signs on as Herbalife’s auditor. Link

* Why am I paying all these taxes? Eric Nagourney – The New York Times. Baby boomers pay more in income taxes than any other generation. Link

* The real reason corporate tax reform is going nowhere fast. Allan Sloan – The Washington Post. The solution to our appalling lack of accurate corporate tax numbers is simple: Require companies to publicly disclose some key numbers, including federal taxes paid for a given year, from their tax returns. Link

* Five myths about taxes. Steven R. Weisman – The Washington Post. Toppling some tall tales about taxes as we get ready for April 15. Link

* Global tax dodge or economic boon? Room for Debate – The New York Times. Are tax havens essential to a smooth-running world economy or just a tax dodge that benefits the rich and should be more tightly regulated? Link

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