Friday, October 12, 2007

Trial of former KPMG executives set to begin

The trial of three former KPMG executives and an attorney on tax fraud charges is scheduled to begin Oct. 23.

"A victory for the government could bolster its broad probe into abusive tax shelters," says The Wall Street Journal. "An acquittal may cause the government to re-think its strategy in future tax-shelter cases."

For background on the landmark case and a discussion of its impact, see the Journal.

Monday, October 1, 2007

Senate committee reviews derivatives and hedge funds

The U.S. Senate Finance Committee is examining offshore hedge funds' use of derivatives as a way to avoid withholding taxes on U.S. stock dividends, The Wall Street Journal reported today.

The U.S. Treasury loses more than $1 billion in potential tax revenue each year through this practice, the Journal said. The finance committee review is part of an overall examination of the taxation of hedge funds and is in the preliminary stages.