Tax Bill Is Great for Accountants — Unless They Have Holiday Plans
- 6 years ago
Tax Bill Is Great for Accountants — Unless They Have Holiday Plans
“Maybe 50 percent of our clients were following the debate and knew it was headed this way,
but I’ve been surprised by the numbers of clients who, by their own admissions, didn’t think this would happen,” said Kate Barton, the vice chairwoman of tax services for the Americas at Ernst & Young.
“Maybe 30 to 40 percent of the heads of tax at corporate clients are scrambling to model out the new law and its impact on their businesses.”
A recent Ernst & Young webcast about tax changes for wealthy clients drew 4,671 people.
“People and teams are going to have to figure out what they need to do to make sure we’re serving our clients
appropriately during a difficult time,” said Len Combs, the firm’s chief United States auditor.
Because the tax overhaul — the first of its scope in more than three decades — is
coming so late in the year, it is setting off a mad dash by public companies.
But large multinational companies, particularly technology and pharmaceutical firms, are also fixated on provisions — such as a one-time tax on offshore profits —
that could cause their business strategies and legal structures to fundamentally change.
“The reality is, for certain companies, their tax profile is going to look a lot different,” said Mr. Combs of PricewaterhouseCoopers.
Companies whose fiscal year closes on Dec. 31 or Jan. 31, as is the case for many retailers, will have just a few weeks to produce quarterly
and annual financial statements for investors that reflect the new tax system.
All this is a headache — possibly a migraine — for many companies and individuals.
“Maybe 50 percent of our clients were following the debate and knew it was headed this way,
but I’ve been surprised by the numbers of clients who, by their own admissions, didn’t think this would happen,” said Kate Barton, the vice chairwoman of tax services for the Americas at Ernst & Young.
“Maybe 30 to 40 percent of the heads of tax at corporate clients are scrambling to model out the new law and its impact on their businesses.”
A recent Ernst & Young webcast about tax changes for wealthy clients drew 4,671 people.
“People and teams are going to have to figure out what they need to do to make sure we’re serving our clients
appropriately during a difficult time,” said Len Combs, the firm’s chief United States auditor.
Because the tax overhaul — the first of its scope in more than three decades — is
coming so late in the year, it is setting off a mad dash by public companies.
But large multinational companies, particularly technology and pharmaceutical firms, are also fixated on provisions — such as a one-time tax on offshore profits —
that could cause their business strategies and legal structures to fundamentally change.
“The reality is, for certain companies, their tax profile is going to look a lot different,” said Mr. Combs of PricewaterhouseCoopers.
Companies whose fiscal year closes on Dec. 31 or Jan. 31, as is the case for many retailers, will have just a few weeks to produce quarterly
and annual financial statements for investors that reflect the new tax system.
All this is a headache — possibly a migraine — for many companies and individuals.