If you are a registered user please log in to see more postings.
 

The AAO Weblog covers accounting issues and current events as they relate the practice of investment analysis. All posts prior to September, 2007 are in the public domain, but after September 4, 2007, only subscribers to The Analyst's Accounting Observer will see all posts going forward. Only selected, occasional posts will be released to the public domain from September 4 forward.

WSJ: When Irish Taxes Are Lower...
Location: BlogsAAO Weblog (Public)    
Posted by: Jack Ciesielski 3/28/2006 8:48 AM
Then U.S. firms' treasurers are smilin', too. Or something like that.

Glenn R. Simpson reports in today's Wall Street Journal that a new study shows that American companies may been overly aggressive in their use of 12.5% Irish tax rate. The study, conducted by economist Philip Lane of Trinity College Dublin, indicates that U.S. firms may not have in fact had the actual physical investment in Ireland that they should have, in order to take advantage of the lower rate.

As you review the 10-Ks and annual reports, do a little reality checking yourself: if a firm has a low tax rate due to Irish tax rates, take a look at the segment information and see if the firm is predominantly invested/operates in the United States or countries other than Ireland. Might make for some interesting discussions with management if you find a relationship in the segment information that contradicts the information in the tax footnote.

Tried to get the report; as you might expect, Philip Lane's home page was timing out due to overload. Later, I hope.

* * * * * * * * * *


Speaking of the Wall Street Journal (online), anyone else but me notice that if you go to "Industry News" and then select "Accounting Industry", all the news stories that were once feeds from Dow Jones Newswires are gone? This seems to have happened since their revamp of the online Journal, and it doesn't seem to affect the other industries.


Maybe I'm the only subscriber who cares, but I used to find that incredibly helpful.
Permalink |  Trackback