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December 4, 2022

Accounting News Roundup: Inversion with a Spin; Performance Ratings Death Watch; Rich Guy to Sue Grant Thornton | 07.28.14

Obama Could Invoke An Old Law To Stop Companies From Leaving America To Save On Taxes [Reuters]
I'm sure no one would notice: "President Barack Obama could act without congressional approval to limit a key incentive for U.S. corporations to move their tax domiciles abroad in so-called "inversion" deals, a former senior U.S. Treasury Department official said on Monday. By invoking a 1969 tax law, Obama could bypass congressional gridlock and restrict foreign tax-domiciled U.S companies from using inter-company loans and interest deductions to cut their U.S. tax bills, said Stephen Shay, former deputy assistant Treasury secretary for international tax affairs in the Obama administration. He also served as international tax counsel at Treasury from 1982 to 1987 in the Reagan administration."

Drug Maker Hospira and France’s Danone in Talks on $5 Billion Inversion Deal [DealBook]
With some added fun: "
If completed, Hospira’s deal with Danone could be considered a 'spinversion,' in which a foreign company spins off a unit to an American buyer, allowing it to undertake an inversion."

Are performance ratings heading towards extinction? [PwC]
The second Big 4 firm to announce the death of forced ranking: "There’s a growing school of thought that our traditional tools for managing employee performance are outdated and in need of a radical reboot.  Some of heaviest criticism has been aimed at performance ratings and forced rankings – those bastions of the annual appraisal process. At the heart of this is the argument that a final ratings number, and performance assessments that differentiate us from our peers, distract from our goals as employees and what organisations would really like us to achieve." 

Tycoon to sue Grant Thornton for millions [Telegraph]
The last thing an accounting firm needs is to be sued by a motivated rich dude: "Vincent Tchenguiz is to sue Grant Thornton, the accountancy firm, for its part in the collapsed Serious Fraud Office investigation against him. The Iranian-born property tycoon accepted £3m in damages plus legal costs and a full apology on Friday to settle claims of false imprisonment and malicious prosecution relating to the collapse of Icelandic bank Kaupthing. In a statement he said he would now focus on “third parties, acting in their own commercial interests” whom he believed were responsible for the probe. The identity of the accused parties became clear on Sunday when he announced he would sue Grant Thornton and Kaupthing for damages reported to run into hundreds of millions. Mr Tchenguiz said: 'We believe the SFO had unofficially outsourced its investigation to Grant Thornton, which was also engaged in numerous related civil proceedings. We may consider bringing a private criminal prosecution for perversion of the course of justice.' "

EY wins £2m Sage audit contract [FD]
PwC had the pleasure for the last 26 years.

Putting out the vibe.

North Syracuse business owner: Accountant stole $44K; I felt betrayed [Syracuse]
As opposed to feeling honored?

CFO Aims to Help BuzzFeed Get ‘Dominant’ [CFO]
LOL.

Doughnut-Wielding Vandals Terrorize Neighborhood [AP]
Such a waste of maple bars.

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