Please ensure Javascript is enabled for purposes of website accessibility

Accounting News Roundup: Deloitte Says Ex-Chief Risk Officer Lied About Markers; Madison Square Garden’s Tax Exemption; Dewey Sue EY? Yes! | 05.21.14

Deloitte Partner Sanctioned Over Conflict of Interest With Casino Client [DealBook]
The word from D-town: “This former partner’s conduct plainly violated Deloitte’s policies, and he lied to Deloitte to conceal his actions,” [spokesman Jonathan] Gandal said. “Mr. Adams is no longer part of our organization, and we strongly condemn his conduct.”

No quick resolution to Big Four issues [China Accounting Blog]
Paul Gillis writes that the appeals process for the Big 4 Chinese affiliates could get messy: "If the firms lose the appeal, which I expect they will, the decision could happen at the worst possible time – near the end of the calendar year. That would be right at the beginning of audit season for calendar year companies. Unless the Big Four are successful at getting a Circuit Court of Appeals judge to stay the decision, U.S. listed companies on a calendar year will all miss their required annual filings in April 2015."  But he hasn't given up all hope, noting that the Strategic and Economic Dialogue is coming up in a couple months and with the U.S. charging Chinese soliders with hacking, "perhaps both sides will be looking for an issue to cooperate on, and maybe that will be accounting regulation." 

Senators Introduce Proposal to Curb Inversions [DealBook]
The Upper Chamber thinks they can get their act together in two years time: "The Stop Corporate Inversions Act of 2014 would essentially disallow any more inversions for two years, giving Congress time to pursue broad changes in the corporate tax code. Such an overhaul could make the United States rates more competitive with other countries, possibly reducing the incentive for companies to move overseas for lower taxes."

32-Year Streak at the Garden: No Taxes Paid [NYT]
Madison Square Garden Company and the Dolan family has managed a pretty nice deal for themselves: "Since 1982, the Garden — an enormously successful, for-profit business — has not paid a dime to New York City in property tax for the land and the building it occupies from 33rd to 31st Street between Seventh and Eighth Avenues. A state law enacted 32 years ago granted the Garden a tax exemption that has no expiration date, a favor given to no other property in the state."

IRS Commences IRC (Internal Revenue Code) Section 409A Audits [NLR]
As you recall, Joe Kristan announced 409A as the worst tax enactment of the decade some time ago. But, oh, these audits do sound fun: "The IRS has commenced a compliance initiative project (“CIP”) aimed at nonqualified deferred compensation arrangements subject to Section 409A of the Internal Revenue Code (“409A”). Although the project scope is limited, employers with arrangements that may be subject to 409A should take this regulatory action as a prompting to review their arrangements and make any corrections needed to ensure compliance with the law."

Dewey Trust Sues To Recover Payments To Ernst & Young [Law360 (subscription)]
EY did some tax advisory work in the 90 days prior to Dewey & LeBoeuf's bankruptcy. The liquidating trust would like that $114,800 back.

Sinead O’Connor leaves KPMG for Dougherty Quinn [IOMToday]
No, not that Sinead O'Connor. But it's an odd headline, isn't it?

AP Editor Accidentally Adds Her Buzzfeed Cover Letter to Photo Caption [Gawker]
Cringe. Be thankful you don't work on the Internet.

Posted in ANR