Share this content
Lunch Beat

Bramwell's Lunch Beat: Maritime Leases, GOP Business Tax Plan, PCAOB Bars Hong Kong Firm

Jan 14th 2016
Share this content

Maritime faces new lease accounting standard
Eric Haun of wrote that the new lease accounting standard issued on Wednesday by the International Accounting Standards Board could have major implications for companies in the shipping and offshore maritime sectors – particularly for time charterers. In general, the changes for lessors and for lessees with existing finance leases are fairly minor. But those who have operating leases as a lessee, such as shorter-term time charters, will be most affected, said Michael Simms, a partner in the shipping and transport group at Moore Stephens. “Companies which previously leased in vessels under arrangements identified as operating leases will now find that, under the new standard, they have to recognize their interest in the vessel as an asset in the balance sheet,” he said. “At the same time, they will also be required to record a liability for their future payments under the charter, to the extent that they relate to the vessel.”

Read more

Devin Nunes's business tax plan now flows in GOP mainstream
Richard Rubin of the Wall Street Journal wrote that when Rep. Devin Nunes (R-CA) started promoting his ABC (American Business Competitiveness) tax plan in 2012, it looked implausibly far from the Republican Party's consensus. Now, Nunes's plan, released on Wednesday, is squarely in the GOP mainstream. Nunes, a senior Republican on the House Ways and Means Committee, wants to lower the tax rate on business income to 25 percent, instead of the 35 percent corporate tax rate or the 39.6 percent top rate on business income reported on individual tax returns. He would let businesses write off their capital investments immediately and repeal all business tax credits and the deduction for business borrowing costs. Nunes's plan would also lighten the tax burden on US companies' foreign income, repeal the corporate alternative minimum tax, and eliminate other targeted tax breaks. Many Republican presidential candidates, namely Sen. Marco Rubio (R-FL), have embraced elements of Nunes's plan on business taxes.

Read more

Hong Kong firm barred from auditing US-traded companies
The Public Company Accounting Oversight Board (PCAOB) on Wednesday barred a Hong Kong firm from auditing US-traded companies after it allegedly refused to cooperate in the US audit regulator's investigation of its work for a Chinese company, wrote Michael Rapoport of the Wall Street Journal. The Hong Kong affiliate of accounting firm PKF and three of its employees agreed to the bar in a settlement with the PCAOB. They didn't admit or deny wrongdoing, and they can reapply after three years to be allowed to audit US companies. The case represents the latest skirmish in US regulators' attempts to oversee auditing and accounting of US-traded Chinese companies. Many such companies have had accounting questions raised about them in recent years, but regulators have often faced obstacles in investigating the companies and obtaining access to the information their auditors possess about them.

Read more

Clinton's estate-tax plan doesn't address her own tax planning
Democratic presidential candidate Hillary Clinton's call on Tuesday to increase taxes on the wealthy and close “loopholes” didn't address the candidate's own moves to shield at least part of the value of her New York home from the estate tax, wrote Lynnley Browning of Bloomberg. Bloombergreported in 2014 that Hillary and Bill Clinton created residence trusts in 2010 and shifted ownership of their Chappaqua, New York, house into them in 2011. Such trusts offer tax advantages, in which any increase in the house's value can be excluded from the Clinton's taxable estate. The trust could save the couple hundreds of thousands of dollars in future estate taxes, a tax specialist told Bloomberg in 2014. The trusts, as well as the “loopholes” she proposed closing in other areas on Tuesday, are legal under current tax rules. Brian Fallon, a Hillary Clinton spokesman, said, “Their tax rate was over 35 percent in 2013, and she is proposing policies that would raise their taxes further.”

Read more

Quick Links:

  • Tax increases diminish economic opportunities (American Spectator)
  • Clinton would raise taxes on the wealthy. Here's what you need to know (NPR)
  • Clinton campaign challenges Sanders to release health plan details (Wall Street Journal)
  • Clinton and Sanders face off over who should pay for new social programs (TaxVox)
  • Ted Cruz and Rand Paul have a terrible idea: a new tax (MarketWatch)
  • No state tax windfall from the Powerball jackpot (The Hill)
  • Contours of tax overhaul may appear in 2016 (Bloomberg BNA)
  • Extras on excise: New bad habit? There might be a state tax for that (Bloomberg BNA)
  • GE moving headquarters to Boston for tech talent, tax cut (Reuters)
  • The true cost to Amazon of the ‘Amazon Tax' (Washington Post)
  • Paying off back taxes can be good for investors (US News and World Report)
  • The Cadillac tax will now be deductible. Here's what that means. (Tax Foundation)
  • Waiting on the court to figure out how to tax remote sales (Tax Analysts)
  • India's long journey to a VAT (Tax Analysts)

Replies (0)

Please login or register to join the discussion.

There are currently no replies, be the first to post a reply.