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When A Foreign Posting Creates Tax Disaster

When A Foreign Posting Creates Tax Disaster

The litigation highlights the hazard of the lassez-faire approach for employers. On the employee side it illustrates the hazard of relying on your employer to take care of you especially if a short term foreign assignment turns into a much longer one.  We may never know how the case turns out, but it is pretty clear that either side would have been served by more forethought.

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Over and over again courts have said that there is nothing sinister in so arranging one’s affairs as to keep taxes as low as possible. Everybody does so, rich or poor; and all do right, for nobody owes any public duty to pay more than the law demands: taxes are enforced exactions, not voluntary contributions. To demand more in the name of morals is mere cant.