IndiGo in rough weather over promoter payout; Google Books not violating copyright laws: US Court
IndiGo in rough weather over promoter payout; Google Books not violating copyright laws: US Court
CIoT: Clarity needed on corporate tax evasion law
by Calum Fuller
15 Oct 2015
THE CIOT has called on the government to confirm whether it still intends to go ahead with plans to introduce a new corporate criminal offence of failure to prevent the facilitation of evasion.
The appeal comes justice minister Andrew Selous said proposals to create a new offence of 'failure to prevent economic crime' would not be taken forward, adding there is "little evidence of corporate economic wrongdoing going unpunished".
Further reading
Both the offence of 'failure to prevent economic crime' and the proposed corporate criminal evasion offence consider the difficulties of holding corporations to account for the actions of individuals working in or for the organisation.
The institute has responded to HMRC's consultation on proposals to find an appropriate means of ensuring corporations can be held accountable under the criminal law for failing to prevent their agents from criminally facilitating tax evasion.
Chairman of the CIoT's management of taxes sub-committee Jon Preshaw said: "The CIoT supports targeted measures to stamp out tax evasion and believes that tax professionals play an important part in assisting people to comply with their tax obligations.
"In our view, the government and HMRC really need to make it clear what the public policy rationale is for the corporate evasion criminal offence in light of the recent ministerial statement. We have been saying that there is enough law in this area already and the ministerial statement seems to support that view."
CCI: Approves public cos.' share acquisition proposal, despite horizontal overlaps, as not competition-adversarial
CCI approves acquisition of 19.77% share capital of McNally Bharat Engineering Company Limited (Target co.) by EMC Ltd. ('Acquirer'); Notes that Acquirer is a public company, engaged in providing services relating to turnkey solutions/equipment for Transmission & Distribution (T&D) and Target co. is a listed co., engaged in the activities relating to steel plant building sector, equipment for aluminium industry, manufacture/supply of port equipment, civil construction, etc; Thus, CCI states that parties have horizontal overlaps in activity of supplying substations of capacity up to 400 KV, a sub-segment of the broader T&D equipment market; However, CCI notes that insignificant market share of Acquirer rules out the possibility of any horizontal/ vertical foreclosure between the parties and also notes presence of other players in the market for supply of substations; Thus, holds that proposed combination is not likely to have an appreciable adverse effect on competition in India:CCI
CCI: Approves Edison-Raritan merger scheme, absent horizontal / vertical overlap
CCI approves proposed combination relating to merger of Edison Acquisition Sub, Inc ('Edison'), a wholly owned subsidiary of Legrand Holdings Inc. ('Legrand'), with Raritan, Inc ('Raritan'); Notes that Edison, a US corporation, is created for the purpose of proposed combination, thus, does not carry out any business activity, but its parent co., Legrand, is engaged globally in business of electrical equipment and digital systems infrastructure that is used in commercial/residential buildings; Notes that Legrand operates in India through Novateur Electrical & Digital Systems Private Limited and Adlec Power Private Limited; Further notes that Edison, a US co. is engaged in creating, developing, manufacturing, etc hardware for data centres and providing related service and is present in India through Raritan International India Private Limited ('RIIPL'), which acts as a sales agent for Raritan in India; Thus, observes that there is no horizontal overlap between parties in India as Legrand caters to electrical and digital equipments used in building industry whereas RIIPL operates as an end to end hardware and software solutions provider; Further observes that there is no vertical relationship between the parties since they are not engaged in any activity relating to production, supply, distribution, storage, sale and service or trade in products / provision of services which are at different stages or levels of production chain; Thus, holds that proposed combination is not likely to have an appreciable adverse effect on competition in India :CCI
CCI : Dismisses 'resale price maintenance' & 'tie-in arrangement' complaint against sanitary-ware manufacturer
CCI rejects informant's (Indore based dealer in sanitary ware & bathroom fittings) complaint against sanitary ware/ bathroom fittings manufacturer - M/s Hindustan Sanitarywares & Industries Limited ('HSIL'), alleging anti-competitive practices including tie-in-arrangement and resale price maintenance; Informant had earlier filed a complaint against HSIL alleging 'abuse of dominance' & 'anti-competitive agreement', which was dismissed, the instant complaint is second information with added allegations; With respect to 'resale price maintenance' allegation, CCI notes that under dealership agreement, HSIL directed its dealers not to charge prices higher than its recommended MRP; CCI holds that since such price does not restrict the resellers to sell below a particular price, it does not raise any competition concern; With regard to 'tie-in arrangement' allegation, CCI notes the product range and observes that bathroom fittings consisting of ceramic and non-ceramic products are sold together as a set or even as individual units, states that "consumers always have a choice to go for a complete set or different units from different manufacturers" :CCI
CCI : Dismisses complaint against real-estate developer; Notes ample players, absence of dominance
CCI dismisses flat buyer's complaint against Ghaziabad based real estate developer (opposite party, 'OP'), alleging that it abused its dominance by imposing unfair terms and conditions in the Buyer's Agreement/ provisional allotment letter; Informant alleged that OP started levying extra charges and increased the rate per square yard which was not agreed at the time of booking; For examining OP's dominant position, CCI delineates relevant market as "services of development and sale of residential plots in Ghaziabad"; Observes that there exist many other real estate developers in the relevant market such as GolfLinks, SKR Group, S K Realinfra, Aarvanss Infrastructure Pvt. Ltd., Wave Infratech, etc., who are engaged in provide similar services as that of OP; Thus, holds that OP neither has a position of strength, which gives it the power to act/operate independently of its competitors nor has the ability to affect its competitors/consumers in the relevant market and hence OP is not in dominant position:CCI
CPA exam evolving to reflect shift in skills requirements - See more at: http://www.journalofaccountancy.com/news/2015/oct/cpa-exam-next-generation-201513176.html#sthash.TmGsk2Y2.QmSDsUTu.dpuf
By Ken Tysiac
October 19, 2015
Related
October 1, 2015
The tasks performed by newly licensed CPAs have changed in recent years.
The Uniform CPA Examination is evolving to reflect those changes.
"Tasks that an entry-level CPA may have done in the past are now either largely mechanized through electronic mediums" or are being handled by non-CPAs, said Rick Niswander, CPA, CGMA, Ph.D., outgoing chairman of the AICPA Board of Examiners.
Niswander, the vice chancellor for administration and finance at East Carolina University in Greenville, N.C., co-presented information about the ongoing CPA exam update Monday at the AICPA governing Council meeting in Maui, Hawaii. The AICPA is seeking feedback by Nov. 30 on an exposure draft that proposes changes to the exam structure.
The timetable calls for changes to be announced in the spring of 2016, with the new exam set to debut in 2017. The proposed modifications to the exam are intended to reflect a shift in the responsibilities of newly licensed CPAs, as reported in extensive feedback to the AICPA exams team.
Although technical skills remain important, the need for CPAs to possess higher-order skills early in their careers has increased. These include:
- Critical thinking and problem-solving.
- Research skills.
- Greater understanding of the business—not just the accounting.
- Communication skills.
"Newly licensed CPAs have needed to have those skills for years and years and years. It's just that the demand for having more of those skills has increased," Niswander said during a pre-Council telephone interview.
The proposed exam update would keep the current four exam sections but change how content is assessed. The proposal calls for less emphasis on "application" and "remember and understand" skills. Questions assessing higher-level analysis skills would be added, and the AUD section also would assess skills of the highest level, evaluation. New blueprints for each section of the exam would illustrate the content, tasks, and related skills that would be tested, assisting exam takers and educators in their preparation.
Overall, the exam would have fewer multiple-choice questions and more task-based simulations. Total testing time would increase from 14 to 16 hours, with one hour each added to the BEC and REG sections.
Convenience for candidates
Some changes would be intended to make the exam more convenient for candidates to take.
New blueprints for each section of the exam would illustrate the information and skills that would be tested, assisting exam takers and educators in their preparation.
In 2018, a new software package could create the possibility for secure testing at more locations. It's envisioned that secure testing could take place even at colleges or firms. Excel spreadsheets also would be added to the exam in 2018.
"The phrase we're using is, we want to make it easier to test, not an easier test," Niswander said.
Although the AICPA has received extensive feedback during the process of updating the exam, it is seeking more comments—which can be submitted by email at exposuredraft@aicpa.org. And even as the current changes are in process, volunteers and AICPA staff are looking forward to changes that might be possible in the future as technological capabilities improve. The efforts are designed to preserve the CPA exam's relevance and role in protecting the public interest as the business world and the demands on CPAs continue to evolve.
"You're going to see an exam that is more representative of what you will do when you get out and work for a CPA firm or work for a company," Niswander said. "I think that's the biggest thing."
—Ken Tysiac (ktysiac@aicpa.org) is a JofA editorial director.
Plans for the exam
The following chart compares the content in the current Uniform CPA Examination to the content proposed for the CPA exam of the future:
Source: AICPA exposure draft, Maintaining the Relevance of the Uniform CPA Examination.
- See more at: http://www.journalofaccountancy.com/news/2015/oct/cpa-exam-next-generation-201513176.html#sthash.TmGsk2Y2.QmSDsUTu.dpuf
Tax Fraud Blotter: Jail in a Flash
October 18, 2015
By Jeff Stimpson
Some of our favorite recent tax fraud cases.
Hyattsville, Md.: Norman D. West, 48, of, Maryland and Washington, D.C., has been sentenced to two years in prison and three years of supervised release and been ordered to pay $408,221.30 restitution for conspiracy to commit theft of public money in connection with a fraudulent tax refund scheme.
According to the plea agreement, West is a musician who also operated a tax prep business known as Flash Cash Financial, or Flash Cash, with a purported business address in Baltimore. From August 2011 through January 2013, West and his co-conspirators obtained the personal information of "recruits" that he used to file false returns to generate a fraudulent refund. West, who relied largely on word of mouth to market his scheme, paid a co-conspirator a $100 referral fee per recruit.
West and his co-conspirators obtained the identities of at least 197 individuals, using the personal information of those individuals and making up the rest of the phony returns. West listed false wages and falsely claimed educational tax credits and the EITC.
West filed 197 federal returns that claimed $391,553 in fraudulent tax refunds, all of which were issued by the IRS. In addition, West filed 28 fraudulent returns with the District of Columbia, which generated an additional $16,668.30 in bogus refunds. He paid the recruits a portion of the refunds, usually about $500, and kept the rest for himself and his co-conspirators.
Boston: CPA Greg Takesian, 52, of Miami, has been charged and arrested in connection with failing to report significant income to the IRS.
According to the indictment, from 2008 to 2011 Takesian failed to report more than $800,000 of income and as a result owes more than $200,000 in income taxes to the IRS. Takesian worked for Takesian & Co., a tax consulting firm owned by his father. Although Takesian ran the day-to-day business of Takesian & Co., he did not have an ownership stake.
Between 2008 and 2011, Takesian & Co. received more than $1 million for tax and consulting services from At Home VNA, a home-health company in Waltham, Mass. In accordance with his duties, Takesian had check-writing authority, and took out several Takesian & Co. credit cards in his name.
During that time, he used several hundred thousand dollars of Takesian & Co. funds for his personal use without reporting this income on his tax disclosures. Takesian gave his wife more than $500,000 and another woman $200,000 of Takesian & Co. funds through checks and cash deposits. Takesian also allowed his wife and others to use Takesian & Co. credit cards to spend more than $50,000 on cruises, jewelry, lingerie and makeup and in the iTunes store and on the Home Shopping Network. Takesian also used Takesian & Co. funds to pay the rent on his personal residence.
He also allegedly failed to file returns for the consulting firm between 2008 and 2011. While his father reported some company earnings on his personal returns, the figures he reported were based on information provided by Takesian, and represented a fraction of Takesian & Co.'s actual income.
Takesian faces a maximum of three years in prison, a year of supervised release and a fine of $100,000 on each count.
Salinas, Calif.: Preparer Elizabeth Calderon, 39, and Esther Sanchez, a.k.a. Trinidad Carrillo, have been indicted on charges connected with filing false returns, theft of government funds, aggravated ID theft, making false statements to federally insured institution and conspiracy. According to the indictment, Calderon is charged with willfully assisting in the preparation and presentation of 13 false federal income tax returns for other taxpayers, among other charges. Calderon and Sanchez, 54, are both charged with conspiring to submit a bank loan application that contained false information and was supported by counterfeited documents.
Baltimore: Bruno Rodriguez, 35, formerly of Hyattsville, Md., has pleaded guilty to conspiring to defraud the U.S. and money laundering.
According to his plea agreement and court documents, from November 2011 to May 2012, Rodriguez helped file fraudulent returns using the stolen IDs of Puerto Rico residents. A co-conspirator who lived in Puerto Rico e-mailed Rodriguez the names, dates of birth and Social Security numbers of residents, including children. Rodriguez split the refunds with the co-conspirator.
Rodriguez gave the e-mails to his wife, Jennifer Rodriguez, who owned Latin Multi Services, a tax prep service in Silver Spring, Md. She used the stolen information to prepare returns that falsely listed the taxpayers as residents of Maryland and included fabricated income and deductions. All of the returns requested refunds and listed bank accounts controlled by Rodriguez and his wife as the recipient bank account for the refunds.
Over the course of the scheme, Bruno Rodriguez caused 291 false returns to be filed with the IRS, resulting in the IRS paying $983,382 in refunds. Rodriguez has agreed to the entry of an order to pay restitution of $983,382.
He faces a maximum of five years in prison for conspiring to defraud the U.S. and 20 years in prison for money laundering. Sentencing is January 5.
Jennifer Rodriguez, 41, previously pleaded guilty to the fraud conspiracy and received a year and a day in prison and was also ordered to pay restitution.
4 Comments
Removing the welfare from the Tax Code, I agree with. 2nd, people at all levels should be expected to pay taxes. I would recommend a simple graduated tax rate and elminate not only the "welfare' aspect, but also all deductions. This would create tremendous savings on the consumer side for tax prep expenses as well as minimizing the IRS tax collection expenses.
Posted by: moron | October 20, 2015 12:31 PM
IFAC News.............. The Importance of Winning the Beauty Contest
by Fayez Choudhury, Chief Executive Officer, IFAC
by Fayez Choudhury, Chief Executive Officer, IFAC
The business world's version of the beauty contest – those award schemes, surveys and rankings of great places to work such as Fortune's 100 Best Companies to Work For - seem to increasingly earn headlines in the business media. While these contests are a source of water cooler discussion and debate, there is of course a serious side. These contests reflect how organizations treat their people—but they also can help organizations attract new people, and retain the ones they have. |
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The business world's version of the beauty contest – those award schemes, surveys and rankings of great places to work such as Fortune's 100 Best Companies to Work For - seem to increasingly earn headlines in the business media. While these contests are a source of water cooler discussion and debate, there is of course a serious side. These contests reflect how organizations treat their people—but they also can help organizations attract new people, and retain the ones they have.
Decision of purchasing asset 'commercial', majority to decide funding mode, rejects application
CLB rejects application filed by petitioner (holding 49%) seeking interim relief to stay respondent co. from passing shareholders' resolution for increasing authorized share capital from Rs. 120 crores to Rs. 240 crores; Notes that respondent co. proposed to purchase equipment of Rs. 100 crores from Nestle, wherein the respondents desired to raise funds by issuing equity shares on rights basis, rejects petitioners\' contention that there is no need of raising funds, holds "there is a decision to purchase dryer costing Rs. 100 crores, it cannot be said there is no need to raise fund"; Observes that respondents are in management without any disputes for several years and the respondent co. is doing well in business, states that "the decision for selecting the mode of raising fund (whether through debt or equity) is a commercial decision to be taken by majority in a company and petitioner being the minority cannot opt for the right under section 397 & 398 of the Act to stall the functioning of the company, when the act of the management was in the interest of the company"; Observes that petitioners had their own independent co. to supply milk to respondent co., which in turn made complete range of milk products, rejects petitioners\' contention that respondent co. has not paid any dividend, states "when petitioners through their own company get revenue from respondent co., they could not have said that petitioners have been reinvesting the profits without any return to the shareholders"; Acknowledges respondents\' statement they will not invoke allotment of shares wherein petitioner's shareholding will not come down to 20%, states that "when the respondents have come forward saying that they will not allot any shares, there cannot be more equity than this":New Delhi CLB
The order was passed by Shri. B.S.V Prakash Kumar, Judicial Member, CLB
Senior Advocate Amit Sibal alongwith Advocates Chirag Mody, Nirav Shah and Aditya Dewar argued on behalf of petitioners, while Senior Advocate Sudipto Sarkar and Advocates Ranjit Shetty, Adity Chaudhury, Ekta Bhasin, Ashok Mathur, Ritin Rai, Ujjal Banerjee represented respondents.
Dear Patrons,
Recently, Delhi HC granted permanent injunction against Glenmark for infringing Merck's drug patent 'Sitagliptin' used for lowering blood sugar levels in diabetic patients [LSI-757-HC-2015-(DEL)]. Delhi HC, rejecting Glenmark's 'lack of inventive step' defence, held "Mere comparison of chemical structure is not sufficient, inasmuch as, picking up parts of chemical structures of different patents and clubbing them will also not be sufficient". HC also dismissed Glenmark's plea of 'public interest' and held that, "Merely because defendant, who is manufacturing generic version, is selling a tablet at a lower price than that of plaintiffs cannot be made ground to decline injunction against the defendant, who has been found to have been infringing the invention".
Shamnad Basheer, founder of SpicyIP, appreciates the above Delhi HC judgement and states that this ruling against Indian pharma co. and in favour of US co. proves that India does not suffer a patent bias. Noting that Delhi HC had also expressed views on credibility of patent experts, the author opines that, "Going forward, patent litigants have to pay great heed to the expert witnesses that they hire."
The author examines Glenmark's plea of 'public interest' & 'drug pricing' and states that the difference between the prices was not that significant from a public health perspective given the availability of substitutes. He mentions "Also if the government finds the prices still high, it can regulate through the price regulator. Patent decisions should not be the vehicle for price regulation".
Click here to read this IP Corner Story – A "Madhu" Victory for Merck: Busting the Patent Bias Myth!
Best Regards
LSI Team
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