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Tax
 

In the current tax environment, how do investors treat profit repatriation?

dkim1984's picture
 
Points)
 on 4/2/13 at 2:42pm

I was just reading Ford's positive domestic sales but slumps abroad in India

Generally speaking though, how do investors treat profits that companies would like to repatriate but can't due to taxation policies?

Do they not include it in their valuations? Do they include it in valuations at current rates? If the latter, then what happens if the regime never changes and they opt to just keep those funds abroad for investment purposes?

If this is unclear, let me know

excess/general tax benefits from stock based compensation

CeleryBurnsCalories's picture
 
Points)
 on 3/2/13 at 10:08pm

anyone familiar with how the accounting goes for excess/general tax benefits for stock based compensation? from my understanding:
1. general tax benefits from SBC added back to cash flow from operations, also add to additional paid in capital
2. excess tax benefits from SBC subtract from cash flow from operations, add to cash flow from financing

do people agree with this? i guess i didn't have a problem with this until i was looking at a company that had an adjustment on CFF for excess tax benefits from SBC, though didn't have an entry included for CFO. i wanted to assume that the excess portion was embedded in the general tax benefit from SBC (which was an entry that was included), though i wasn't sure if this was the correct approach

A shot of Double Irish with a side of Dutch Sandwich

Finance and Fajitas's picture
 
Points)
 on 12/15/12 at 12:47pm
tax evasion.jpg

The European Union has come together in outrage over Google’s tax evasion, which avoided $2b in income taxes world-wide, well ‘legally', according to the company. This has been done by Apple, Amazon and Starbucks as well, through Royalty payments made to a subsidiary company based in tax havens like Bermuda and the Caribbean.

Tax issue for an asset purchase

vscid's picture
(Chimp, 4
 
Points)
 on 12/3/12 at 10:06pm

Hi,
I wanted to know if there is anyway to mitigate the tax issues resulting out of an asset transfer (buyout) of a C corp. Please help!

EY Tax salary?

couchy's picture
(King Kong, 1,359
 
Points)
 on 11/4/12 at 3:40pm

my friend wants to compare her EY tax FSO offer in a city like Bos/SF/Chi. Does anyone know the average starting salary there?

The "dividend tax" cliff approaches: Implications for stocks

Aswath Damodaran's picture
(Gorilla, 566
 
Points)
 on 10/1/12 at 12:30pm
dividend tax.jpg

A great deal has been written about the "fiscal cliff" that US taxpayers, investors and companies are faced with at the end of this year. Put simply, all of the tax changes made in 2002 and 2003 expire at that time, and the tax code will, in large part, revert to what it was prior to those changes. I will leave it to others to debate the macro economic implications of going over the cliff but I want to focus on one "segment" of the code that has implications to valuation.

In 2003, the tax code was altered to bring the tax rate on dividend income down to 15%, to match the tax rate on capital gains. That was, in a sense, a revolutionary move, at least for the US, since dividends had been taxed much more heavily than capital gains for much of the previous century. I did write a paper in 2003 about the potential implications of the tax law change for businesses that you can read. In effect, I argued that the tax change would have a positive effect on stock prices, that the effect would be greater for "high" dividend paying stocks than for non-dividend paying stocks and that corporate dividend policy would be altered by the change. Now that there is the possibility that the law will be reversed, it is time to revisit the issue.


Dividends, Expected Returns and Stock Prices: Why taxes matter...

Why tax

noledjoker's picture
O
 
Points)
 on 9/23/12 at 12:40am

Hello guys, I am going through an interview process with big 4 and I am told that that I will be asked a question: "why tax?" I am trying to know what to answer. I know my answer should be "say whatever you think is the reason you picked a direction" but the point is that I am not sure why I did it. I do not say that however;because obviously it will not sound very decisive. Please give me some advises because I feel like if I can answer this questions, than I should handle myself well enough on the rest of the interview.

sincerely,
George

Deloitte Tax Consultant interview

noledjoker's picture
O
 
Points)
 on 9/17/12 at 1:30am

Hello guys,

I have applied for Tax Consultant positions at Deloitte and I am trying to get ready for potential questions. Please let me know what kind of questions to expect. on the first or second interview. Also, if you are aware, how fast do they tell you the answer on your advancement. Please any kind of input would be awesome.

Deloitte's Recruiting process for Tax Consulting

noledjoker's picture
O
 
Points)
 on 9/14/12 at 2:04pm

Hello There,

I Have applied for Deloitte Tax Consulting position. I am going on an office visit at Deloitte on17th of September but that is from my own research not part of the process. I have my first interview next month and I am wondering what is a whole process like. How many interview are meant to be and what are the components of each interview. This is very important to me as I can plan accordingly, since I have still some school left.

Your input is very much appreciated!!

Is this a fair tax system?

SirTradesaLot's picture
O
 
Points)
 on 9/13/12 at 1:02am

This is an oldie, but goodie for those of you that haven't seen it before:

EDIT: the source of the below is unknown.

Suppose that every day, ten men go out for dinner.

The bill for all ten comes to $100.

If they paid their bill the way we pay our taxes, it would go something like this.

The first four men -- the poorest -- would pay nothing;

The fifth would pay $1:

the sixth would pay $3;

the seventh $7;

the eighth $12;

The ninth $18.

The tenth man -- the richest -- would pay $59.

That's what they decided to do.

The ten men ate dinner in the restaurant every day and seemed quite happy with the arrangement -- until one day, the owner threw them a curve.

Tax question

unknown00's picture
(Monkey, 30
 
Points)
 on 9/11/12 at 12:46pm

i know we are not tax experts but thought i would ask and get some opinions (me being a new trader and all)

1. How much is capital gain tax? Is it different per state? I've been hearing long is 15-25% and short is 25-50%
2. If I transfer stock to someone else (yes it's possible), how is this taxed for me the sender and how is it taxed for the receiver?

Britain has proposed a one time tax on WEALTH

Nobama88's picture
RE
(King Kong, 1,676
 
Points)
 on 8/29/12 at 7:51pm

http://www.cnbc.com/id/48825978Deputy

Prime Minster Nick Clegg, leader of the Liberal-Democrat Party, has proposed a one-time tax on the wealth (rather than the incomes) of high-net-worth Britons. The details aren’t clear, but Clegg says the country is facing an economic war caused by a prolonged recession, and needs to tax the rich in order to avoid social unrest.

He told the Guardian that unless the country “hardwired fairness” into the budget, “I don't think the process will be either socially or politically sustainable or acceptable."

They have not come out with any specifics of just how much they are planning to tax wealth, but hell a couple percentage tax on my wealth (along with my 45-50% tax rate) would make me go running.

Where to find Legal and Tax advice for startups

fermion's picture
O
(Baboon, 132
 
Points)
 on 8/29/12 at 3:04pm

I just started my own quant finance consulting shop. My background: heavy STEM training, spent some years building quant models for a major consulting firm, and now have found my own contracts/clients.

So far it's a one man shop, so the LLC is essentially a pass-through with which to pay me. However, I am going to start taking on new people over the next 3 months and expanding beyond my main client.

So now I have to think about things like contracts, payroll, legal protections of my own and the firm's assets, etc. Stuff that I don't want to leave to DIY halfassery.

What's the best way to go about finding accountants and lawyers? I can probably spend max 20K on such expenses on a yearly basis; I am running very lean right now.

What should I look for? What should I ask for?

YOUR TAX CUT IN NYC

seville's picture
 
Points)
 on 8/2/12 at 2:26pm

How much tax is deducted from your pay check in NYC?

Offshore account? Think again.

Yuriy A's picture
AM
 
Points)
 on 5/9/12 at 7:00pm
singapore bank.jpg

The primary response to the financial crisis by the U.S. government was to put in place many new regulations that covered everything from setting up a business to centrally clearing all derivative trading.

I was recently listening to a video blog posted by Peter Schiff, he was mentioning that he would like to expand his Europacific Capital business, but said that it is becoming increasingly hard to do so state side because of the massive compliance measures and regulations set forth by U.S. government entities that make it too expensive for Europacific and other businesses to create jobs here. The alternative is to set up the new business overseas which would take away any new tax revenue in the U.S. and more importantly any new jobs that the U.S. desperately needs.

For Wall Street Villains: The Five Best Hideouts -- With No Extradition

prospie's picture
(King Kong, 1,674
 
Points)
 on 2/2/12 at 9:20am

"Bernard Madoff's Ponzi scheme cost 16,500 investors a total of as much as $18 billion, according to the court-appointed trustee, but at least Madoff is not on death row. In Hangzhou, China, in November, Ji Wenhua and his brother and their father (who were managers of the Yintai Real Estate and Investment Group) were sentenced to death after their convictions for cheating 15,000 investors out of the equivalent of $1.1 billion. Prosecutors said the men had continued to collect money by claiming profits while losses mounted." [China Money Report, 11-10-2011]

NYC/NY State Summer Analyst Income Taxes

MIDB's picture
(Chimp, 15
 
Points)
 on 12/21/11 at 12:38pm

I was a summer analyst in NYC this past summer; I believe starting in January we can file for the state and/or city income taxes. I had quite a bit taken out for state/city income taxes (made about $14k total and paid over $1k in state/city income taxes over the course of the summer).

Should I expect a refund? If so, is it possible to file myself or do I pretty much need a tax professional to help?

What Is Taxation?

Taxation is the process of a government claiming money from the general population for the purpose of using that money to run the country. Ideally a government will only spend the amount it gains in taxation, although in the Western world it usually spends far more and runs a budget deficit.

There are hundreds of different kinds of taxes, ranging from income tax to tax on goods and services to inheritance tax.

Related Terms

What Is Earnings Before Interest, Tax, Depreciation & Amortization (EBITDA)?

EBITDA stands for Earnings Before Interest, Tax, Depreciation & Amortization and is one of the most commonly used indicators of the profitability of a firm.

The EBITDA calculation is Operating Income + Depreciation + Amoritzation + Stock-Based Compensation.

EBITDA is a popular metric used for comparing companies, particularly with an LBO. The most common multiple using EBITDA is:

  • Enterprise Value / EBITDA

Where do I go from here???

pencilpusher's picture
O
(Chimp, 11
 
Points)
 on 7/10/11 at 9:22pm
GRAD SCHOOL.jpg

Ok, so here is my predicament. Im 24, I have a BS in Finance, and I am going to finish a Certificate in Foundations of Accounting and Auditing(A graduate program that gives you a fast track to qualifying for a MS in Accountancy/Tax) in December 2011. I am browsing schools that offer Accounting Masters programs and I am realizing that alot of the best schools dont offer a MS in Accountancy/Tax, only a MBA with a focus in Accounting. I want to get some advice from some other professionals to see which route will give me better experience/knowledge

MBA in Accounting vs. MS in Accountancy or Tax

Give me your opinions, and let me know if you want me to give you any other information.

Job/Internship Outlook for UCSB student?

isocron's picture
(Chimp, 3
 
Points)
 on 7/7/11 at 3:10am

Hey everyone,

I recently completed my second year at UC Santa Barbara, and I can't but wonder about my prospects for landing an internship at the Big 4. I have decent grades, held a couple of well-rounded jobs. and on pace to meet the 150 hour requirement for CPA.

I heard somewhere that UCSB became a target school for Big 4 hires, but we don't have a business program. So we are recommended to enter public accounting for the Big 4 and national firms. A lot of my friends are hoping to land an internship with the big 4 inassurance or tax, but I have little interest in going into either. I want to go into advisory services for the big 4 or even consulting for some regional/local firm (yes, I know it's a big reach).

That being said....

So how does the Chinese afford stuff now?

trazer985's picture
ST
(King Kong, 1,743
 
Points)
 on 6/30/11 at 8:55pm

http://www.npr.org/templates/story/story.php?story...

7.7% of the population paying tax. What on earth does the government pay for these days? How? Trade surpluses are for companies, countries dont export, are state owned companies that dominant/lucrative?

Deloitte Discovery Program

BankMonkey21's picture
IB
(Orangutan, 327
 
Points)
 on 3/21/11 at 12:34pm

Does anyone know anything about this program and would like to share some insight on structure,experience,pay?

Signing bonus taxes?

WSO_Ninja's picture
(Chimp, 12
 
Points)
 on 3/16/11 at 12:26am

Do any of the BBs give signing bonuses without taxes withheld? As in, give you the full 10k and then you pay the taxes next year?

Summer Tax

KMD's picture
IB
 
Points)
 on 3/10/11 at 3:49am

Just wondering, how much do summer analyst usually give up on taxes? Am I right in assuming that I will be basically giving away half of my summer compensation to the government?

FYI, my internship will be in NYC.

Change in net working capital and interest and tax expenses

abcx's picture
CO
 
Points)
 on 1/25/11 at 2:47am

Ok, so I calculate net WC as current assets - current liabilites. Cash IS included in current assets, as it should be. Change in net WC is obviously just the delta between two years.

My question is this: when you pay interest and taxes, I understand that they show up on the income statement, but does the cash account on the balance sheet go down too, thus impacting the change in net WC? And if the cash account does not change for interest or tax expenses, why not?

Finally, how does this impact the FCFE calculation:

FCFE = Net Income + D&A - Capex - Change in net WC?

I realize the forumla is correct but for the (stupid) life of me, I can't understand how tax and interest expense are not being double counted if they are also reflected in the change in net WC?

Thanks

Ill. faces 66 percent tax boost amid budget crisis

txjustin's picture
O
(Neanderthal, 2,447
 
Points)
 on 1/12/11 at 7:30pm
tax.JPG

I'm surprised Ant hasn't posted this yet. Please discuss...

Illinois Tax Hike

By DEANNA BELLANDI, Associated Press Deanna Bellandi, Associated Press – Wed Jan 12, 9:54 am ET
SPRINGFIELD, Ill. – Democratic Illinois lawmakers beat a looming deadline and approved a 66 percent income-tax increase in a desperate bid to end the state's crippling budget crisis.

Legislative leaders rushed early Wednesday to pass the politically risky plan before a new General Assembly was sworn in at noon, taking a slice out of the Democratic majority and removing lame-duck lawmakers willing to support the tax before leaving office.

Living "outside" NYC for tax reasons

kiwiserv's picture
 
Points)
 on 12/16/10 at 12:48am

NYC imposes a wage tax that could be used for lots more fun. Does anyone live outside of the city on paper but still rent/own someplace in the city on weekdays(or completely) to avoid this additional pain in the A and have some extra change for IDK a motorcycle?

Estate Planning: The Shotgun Approach

Edmundo Braverman's picture
ST
(Human, 14,313
 
Points)
 on 11/4/10 at 6:30am
Gun In Mouth.jpg

I know Halloween was a few days ago, but I can't resist the ghoulish temptation to write about this novel approach to estate planning. As most of you know, the year 2010 has become a de facto estate tax holiday for those estates normally subject to the tax. But all good things must come to an end, and on January 1, 2011, the estate tax goes back to a punishing 55% of all assets over $1 million.

As with most things in life (and death, apparently) timing is everything.

This creates an interesting ethical dilemma. Do you love your family enough to swallow a bullet before New Year's Eve if it meant you could save them several million in estate taxes? Wyoming Rep. Cynthia Lummis says she has wealthy constituents who are discontinuing dialysis and other treatments now in order to beat the clock and pass their ranches and businesses on to their children without the feds getting their grubby paws on it.

First Year Income/Expenses

Faustus's picture
IB
 
Points)
 on 10/31/10 at 4:45pm
Income:Expenses.jpg

Do you guys think this is accurate for a first year?