Billion-Dollar Tax, Penalty And Interest Charge Against Exelon Upheld By Seventh Circuit
There is a lesson there for tax planners. Despite its efficiency, e-mail, with multiple copies might not always be the optimal way to communicate, particularly when you are trying to get your story straight. The zeal of the lawyers to have the appraisal language “just so” (because God knows CPAs can’t write) contributed to the client going out of pocket an extra $87 million (plus interest).
Lawsuit Against Caterpillar For Inadequate Tax Disclosure Dismissed
When you think about it, it is a little odd. You really can’t have a note in your financial statements that you are unlawfully using foreign subsidiaries to avoid paying billions in taxes, without accruing the taxes. At least that is my understanding of Fin 48. Of course, I never learned the secret handshake or got the decoder ring, so I can’t be sure.
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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.
