Friday, March 10, 2017


 Merv, this story has the makings of a
> new book.  Some government agency, we are not clear
> precisely which one, hires an academic accounting
> professor/expert who spends 200 hours reviewing material and
> doing calculations regarding a complicated tax
> strategy.  She then produces a report in which she
> accuses the company of fraud – in writing. Her report
> does not mention the tax strategy is legally used by
> numerous companies.  She doesn’t bother to
> contact anyone at the company to review or discuss her
> findings and the company is not given a copy of the
> report.  She also does not have any contact with the
> company’s public auditing firm which would undoubtedly
> have been advising the company regarding the tax strategy
> formulation and execution.  However, the NYT is given
> the report and publishes a potentially damaging summary of
> the report – CAT stock price down 2.8%
> yesterday.
> I’m neither a lawyer nor an
> accounting expert but I do have a nose and this story really
> stinks.  It resembles the old here is our conclusion go
> find evidence to support it strategy.  I wonder if the
> accounting professor has exposed herself to potential legal
> action.
> This report is a strong argument in
> favor of Trump’s drain the tax code swamp
> position.  My own experience in the world of corporate
> taxation has convinced me there is virtually no way to avoid
> violating some aspect of the tax code.  It’s
> beyond ridiculous.  I also suspect there is a secondary
> target and it is Trump.  The msm is eager to publish
> anything to discredit him.
> By the way, the CEO should move the
> wife to Chicago – much simpler.  It would,
> however, not be the first time for such a move.
> I did read an article the other day
> which claimed major corporations are moving out of the
> suburbs and back into the cities because the suburbs are in
> the process of dying.  The millennials are no longer
> into big houses (mcmansions are out), commuting and shopping
> malls – shopping is increasingly being done on line.
>   The authors point was the companies need to
> follow the labor source.
> We live in interesting
> times.
> __________

>  next Wednesday.

> Merv Renn

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