UHY Global: Companies claim they can ignore cost of U.S. tax rules

19 December, 2019   -   By Luisa Almazan

This post is also available in: Français (French)

A number of large U.S. firms argue that elements of the Tax Cuts and Jobs Act are not “valid”, putting them on course for court clashes with the Treasury Department and the IRS. One such company, Newell Brands, has chosen no to recognize $180m-$220m in taxes– a cost that would have pushed it from a profit to loss in the second quarter. Maxim Integrated Products made a similar claim, according to the Wall Street Journal. The corporations’ complaints are the leading edge of a legal challenge to the temporary, retroactive regulations, which the Treasury released in June to stop and overturn what it saw as abusive transactions made during gaps created by the 2017 tax law. The 2017 law created a territorial tax system so that the U.S. corporations can send foreign profits to their domestic parents without paying U.S. corporate taxes.- but also created a minimum tax on foreign income, to prevent companies from avoiding U.S. taxes on profits. The territorial system started January 1st, 2018, while the minimum tax took effect based on the fiscal year of companies’ foreign subsidiaries, starting with the first tax year beginning after December 31st, 2017- giving firms almost a year yo repatriate earnings without paying U.S. taxes. “Once you saw that mismatch, that was the main ingredient and environment you need for the planning,” said David Sites, an international tax partner at Grant Thornton. 

 

For more information visit: Wall Street Journal 

UHY Victor Response to the Spread of COVID-19

UHY Victor is taking action to maintain the health and welfare of our team, our clients and support communal efforts to respond to the coronavirus pandemic.

UHY Victor will remain open during this difficult period and client services will continue. We have implemented contingency plans which allow us to continue to operate as we all deal with the spreading pandemic.

In light of the present situation we have introduced the following measures:

  • Our staff and procedures have been structured so that our team can work remotely.
  • Our IT infrastructure and data are protected by cutting edge security systems.
  • To the extent possible, client meetings will be held through web meetings and other remote solutions.
  • Employees who experience the primary symptoms such as fever, cough and respiratory difficulties will work remotely until cleared.
  • Internally, we emphasize the importance of “social distancing”, and have enhanced our internal cleaning and disinfecting protocols.

UHY Victor will continue to monitor the changing situation and, will respond proactively as this major health challenge evolves.

We encourage all to stay informed and to visit the Public Health Agency of Canada COVID-19 site, and follow the guidelines set out by the government of Canada:

  • Now and always during cold and flu season, stay home if you are sick. Encourage those you know are sick to stay home until they no longer have symptoms.
  • Since respiratory viruses, such as the one that causes COVID-19, are spread through contact, change how you greet one another. Instead of a handshake, a kiss or a hug, a friendly wave or elbow bump is less likely to expose you to respiratory viruses.
  • Practice frequent hand hygiene and coughing and sneezing etiquette. Clean and disinfect frequently touched objects and surfaces, such as toys and door handles.

For more information on the guidelines of the Government of Canada on how to be prepared for COVID-19: Click here.

 
 
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