However, a related New York Times article on the story reported: "In court papers, the I.R.S. said that First Data had actively marketed and sold offshore services to American merchants, typically investment and Internet-commerce advisory shops, who in turn used the service to help their clients hide taxable income…In 2002, the unit [Cardservice International and now called First Data Independent Sales] which works with 3,200 independent sales offices and agents to sell and provide financial processing services, began marketing offshore processing services with First Atlantic Commerce, an e-commerce company in Bermuda, according to court documents" (Browning 2009). The IRS states that First Data, "clearly markets offshore merchant account services to U.S. merchants as a means of tax avoidance by advertising its services on the Web sites of foreign promoters of abusive offshore tax schemes and products" (Browning 2009). The pressure placed upon First Data is emblematic of the greater scrutiny upon offshore banking in general. Nations known for creating tax havens like Belgium and Switzerland have been subject to greater criticism and scrutiny by the other world powers. A recent editorial fumed: "Senate investigators estimate that Americans who hide assets in offshore bank accounts are failing to pay about $100 billion a year in taxes…The Tax Justice Network, a research and advocacy organization, estimates $11.5 trillion in assets from around the world are hidden in offshore havens" (100 billion, 2009, The New York Times). On the part of accountants and financial institutions everywhere, more scrupulous attention to upfront banking and reporting practices are demanded and companies such as First Data cannot be...
Tax shelters are another example of a long-standing hidden method of income enhancement whose illegalities are now being exposed. Nations are working closer together to reveal the existence of offshore accounts, and to make their holders accountable to legal and economic repercussions. It is essential that the accounting profession become more cognizant of changes in the law, greater enforcement of the law, and that it encourage clients to recognize the new realities of the current legal environment.
This process has been ongoing since then. One of the major differences between the two standards is going to be that whereas GAAP emphasizes rules, the IFRS is a principle-based approach. Implementing a principles-based approach has significant implications for American tax practice. Many of the specific differences between the two systems will have a direct impact on tax practice. In IFRS, LIFO is prohibited and inventory write-downs may be reversed
University has offered its professor $200,000 in order to relinquish tenure and resign. In particular, the aspect to consider is the tax consequence of such compensation. The professor's standpoint is that tenure should be treated as an intangible capital asset, and relinquishing tenure ought to be a long-term capital gain. The main tax issue in this case is whether the relinquishment of tenure encompasses a sale or interchange of
UK Government Restore the 50% Additional Rate of Income Tax? The United Kingdom has developed to become one the highest taxed nations across the globe despite impaired competitiveness and stifled economic growth. Unlike most OECD countries that have lessened their tax burdens since 1997, UK taxation has increased, which has resulted in reduced competitiveness of the country's position as a low tax regime. The other characteristics of UK taxation include
Finally, a 1998 Center on Budget and Policy Priorities report, examined research, data and findings on the EITC found that when this research was summarized to its substantiate bits, several positive themes over the benefits of the EITC emerged. They include (Greenstein & Shapiro, 1998): Substantial positive effects on inducing single parents to work. A study by Northwestern University economists Bruce Meyer and Dan Rosenbaum. Meyer and Rosenbaum found that more
UK Government Restore the 50% Additional Rate of Income Tax The Recent History of the Additional Rate of Income Tax It is important to note, from the onset, that income tax remains the government's largest revenue source -- effectively raking in an average of 30% of the total tax collected. In essence, every individual has what is referred to as personal allowance on income tax, whereby every tax year, all incomes
As mentioned above, several organizations are making efforts for advertising this measure. Even so, the IRS expects that a higher number of first-time applicants intend to use the EITC benefits. The factors that led to this situation are represented by the high turnover rates determined by the crisis. In addition to this, several studies in the field have observed the fact that the level of EITC influences wages and the proportion
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