Accounting News Roundup: Pfizer and Allergan; Director Overboarding; Surviving Thanksgiving | 11.23.15

Pfizer to Merge With Allergan in $160 Billion Deal [NYT]
Pfizer is finally getting the Irish tax haven it has always wanted, thanks to this deal with Allergan who is headquartered in Dublin. Pfizer's tax rate was 26.5% last year while Allergan's was 4.8% in 2014 and is expected to have 15% rate for 2015. The combined company will have $63 billion in revenue. Pfizer shareholders will own 56% of the new company, Allergan shareholders will own the rest. The whole thing is subject to regulatory approval, expect some political bluster before it's all said and done.   

ISS Adopts Stricter Policy on Director ‘Overboarding’ [CFOJ]
Institutional Shareholder Services says that any non-CEO director who is serving on more than five public company boards is "over-boarded." Glass Lewis is reducing its acceptable number for CEOs to two, down from three and five down from six for non-CEO directors, matching ISS's recommendations.

IRS Urged to Focus Audits on Wealthiest [WSJ]
The Treasury Inspector General of Tax Administration says that the IRS spends too much time auditing individual tax returns in the $200k-$400k range. Only 1.5% of returns in this range are selected for audit, however, those inspections yield an additional $605 taxes per hour. Audits of $5 million or greater returns, find an additional $4,545 per hour.

In other news:

  • The Accounting Rules That Bankrupt Cities [The Atlantic]
  • Having the Here’s-What-I-Want Conversation With Your Boss [HBR]
  • How Millennials Can Manage Older Generations Without Feeling Awkward [FC]
  • How to Survive Your Family's Thanksgiving Arguments [Vox]
  • Zimbabwe's Mr. Ugly pageant scandal [AP]
     

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