The rules of residency for multinationals are extremely complex and not a little fuzzy and getting them wrong could cost big time. Instead of being taxed in what you fondly believe is a low or reasonable corporate tax regime, you could find one of the world's steeper tax regimes claiming that actually, for tax purposes, you are domiciled in their domain. How could such confusion arise? Relatively easily, according to Frédéric Donnedieu de Vabres, Chairman of Taxand, the world’s largest independent global organization of specialist tax advisers to multinational businesses.
Each week QFINANCE.com brings you some of the biggest news stories from the past five days in finance and business – essential reading to keep you up to date with the latest topics.
Over the past several decades the number of metrics used to measure a company’s worth has narrowed to one: profit. The formula is simple: Profit = Excellence
In the wake of the 2008 crash, with massive public anger over billions in losses caused by reckless trading by bank proprietary desks, the public naturally wanted to see those responsible punished in some way. So far, it has to be said, that hasn't happened, though court actions against some of those responsible may ultimately change this.
I was surprised and exasperated to learn last week that the UK government has rubber stamped the appointment of John Griffith-Jones, the senior partner of KPMG, as chairman-designate of the Financial Conduct Authority, one of the two financial regulators that will take over from the soon-to-be-disbanded FSA. As the news of this "revolving door", "poacher-turned-gamekeeper" appointment sank in, my heart sank and my disappointment bordered on outrage.
Regulators in China and the US are on a collision course over the future of bean-counting. At stake is how Chinese companies are audited, and how the Chinese operations of the ‘Big Four’ audit firms will in future be managed and regulated. The US doesn't want to see investors getting burnt when they invest in Chinese firms that are listed in the US; China, for its part, wants to see fewer barriers to Chinese firms raising overseas capital and less overseas interference in how Chinese firms are audited.
The response of the “Big Four” accountancy firms to plans from EU internal markets commissioner Michel Barnier to shake up their oligopoly made me think of a quote from George Bernard Shaw; writing exactly a century ago in 1911, the great Irish playwright wrote that "All professions are conspiracies against the laity".
Each week QFINANCE will endeavor to bring you some of the biggest news stories from the past five days in finance and business, as well as some of the most fascinating websites and links that have crossed our path. We hope you'll enjoy reading it and you'll come back each Thursday to brush up on your finance and business knowledge.
Over a decade ago, I wrote an article entitled "Worth Every Penny" for a local Silicon Valley business publication. My position was that the entrepreneurs who were building their dreams into companies should be compensated for the work they were doing.
Most investment analysts tend to looks at the corporations they cover through rose-tinted spectacles. You just have to look at the preponderance of "buy" and "hold" notes, as opposed to "sell" notes detailed in my earlier blog post 'Anonymous takes aim at the cosy world of investment analysis', to see how and why this happens. In this comfortable world of mutual back-scratching, CLSA's Mike Mayo stands out as the leading heretic.