November 06, 2012
Alan Griffith, California Partner-In-Charge of Tax & Business Services, Featured in Compliance Week Article "When Permanent Reinvestment Assertions Just Don't Hold Up"
By Tammy Whitehouse
According to the latest data, earnings held offshore reached $1.5 trillion at the end of 2011.
Companies are now bracing for big changes to U.S. tax policy on those earnings, and they are considering how to convey the risks of those potential changes to investors. Meanwhile, auditors are testing the legitimacy of company assertions that foreign earnings should be free of U.S. income tax.
Alan Griffith, a tax partner with audit firm Marcum, says in his experience auditors are looking at two major factors to place confidence in a permanent reinvestment assertion. They want to see a statement of intention by management, and they want to find no evidence that would contradict the assertion, he says. “I don't see auditors looking for a lot more evidence than that,” he says. He does see auditors and regulators putting more scrutiny into the disclosures.
Click here to read the full article on www.ComplianceWeek.com >>