A change to how companies account for US income taxes could be in the offing after the Financial Accounting Foundation (FAF) announced a post-implementation review of FAS 109, the financial accounting standard for income taxes in US Generally Accepted Accounting Principles (GAAP).
Companies in the UK, even if they are not tax resident, will have to certify that they have been tax compliant for the previous 10 years before they can compete for government contracts, under new proposals introduced today.
The US has achieved a significant result in its efforts to clamp down on tax evasion by its entities and citizens around the world by persuading Switzerland to sign a bilateral agreement for the implementation of the Foreign Account Tax Compliance Act (FATCA).
A consultation has revealed that multinational companies, accounting firms and standard setters want IAS 12, the international accounting standard for income taxes, to change but few are in favour of tearing it up and starting again.
Reduced compliance costs, improved service and how best to ensure that the UK tax system is implemented as parliament intended are some of the aims of a new academic organisation set up to look at how UK tax administration could operate better.
