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RECENT TAX DEVELOPMENTS
SEC’s January 10th administrative order against the
Hudson
Highland
Group, Inc.
The SEC found that this publicly traded company was in violation
of Securities Laws because the
company did not have adequate internal
controls and accounting software which caused the company to have
significant sales and use tax compliance deficiencies.
In
addition to a cease-and-desist
order issued against the company,
the SEC assessed them a $200,000
fine. In summary, public
companies with inadequate internal
controls could be held in violation
of Securities Laws where these inadequacies contribute to material
sales & use tax deficiencies.
View
the case (PDF)
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Ohio Department of Taxation to Pursue Businesses for Unpaid
Use Tax
The Ohio Department of Taxation (“Department”) has
recently announced that they will be contacting and investigating
approximately 380,000 businesses that are not registered for use
tax. Use tax applies to the purchase of goods and services and
is due when the purchaser has failed to pay sales tax directly
to the vendor.
The Department is allowing unregistered companies to come forward and enter into
a voluntary disclosure agreement (“VDA”) prior to being contacted
by the Department (August 1, 2011). Under the VDA, a taxpayer can:
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Avoid a seven
year audit by the Department;
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Limit
its liability to the prior three
years with complete abatement of
the 15% penalty;
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Avoid the disruption that
is unavoidable when Department
auditors come on-site to audit
a taxpayer’s
books and records;
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Avoid a costly
and time consuming appeal process
to protest overstated estimated assessments.
Please call Randy Cole (440.585.5600)
or David Muchewicz (330.723.9973)
to discuss any questions or concerns
you may have regarding your company’s use tax
obligations.
View
tax alert (PDF)
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