Tim was recently called into the partner’s office and offered a two-year assignm
ID: 2488824 • Letter: T
Question
Tim was recently called into the partner’s office and offered a two-year assignment in his public accounting firm’s Shanghai office. Realizing that Tim will face incremental expenses while in Shanghai, such as foreign income taxes and rent, the firm will try to make him “whole” from a financial perspective by increasing his salary to help offset the expenses he will incur while living overseas. If Tim takes the assignment, he will likely rent his personal residence and sell several major tangible assets such as his personal automobile.
Identify the relevant issues.
Explanation / Answer
A US company will be subject to tax in a foreign country if the company has a PE or, in nontreaty countries, a taxable presence in the foreign country.
The details of what constitutes a PE, or how a company establishes a taxable presence in a foreign jurisdiction, are complex, and HR professionals do not need to fully understand every nuance. However, it is important that they recognize that the company might create a PE by sending an employee abroad and that they will need to address the structure of the assignment with the company’s tax, legal, and business professionals.
Jun 26, 2011 - served two years as the President of CPA Australia, which gave him an understanding of the ..... small offices in China in the early 1980s that would provide advice on doing ... that the Big Four will not dominate the Chinese accounting ... senior partner of Da Hua, Shanghai's largest accounting firm,
. In some circles—financial professionals in Manhattan, regulators in Washington, central bankers in Europe, or the owners of cash-strapped businesses, to say nothing of the millions of people who have been laid off or whose houses have been foreclosed on—this thing is, in its various incarnations, pretty much the only subject of conversation.
A different type of article was written by Yunwei Tang (2000) and published in the journal Accounting Horizons. Tang was a noted Chinese accounting professor, International Accounting Fellow with the International Accounting Standards Committee (IASC), senior partner of Da Hua, Shanghai’s largest accounting firm, and Chairman of Price Waterhouse Da Hua, Price Waterhouse’s joint venture firm in Shanghai.
The modern accounting profession in China has developed over a 30-year period beginning in 1980. I decided to study this period in order to identify and analyze phenomena that result in persistent changes, rather than those with temporary impact. The period of study also fills a gap in the literature for a comprehensive analysis of the development of the profession in China.
The remainder of this thesis is structured as follows
Chapter 2 explains the overall grounding of the study in Marxist theory, and explains and justifies the selection of Gramsci’s theory of hegemony as the guiding theoretical foundation for the study.
Chapter 3 outlines the methodology of the study.
Chapter 4 evaluates extant literature related to the Big Four accounting firms with a focus on the globalizing impacts of these firms.
Chapters 5 through 8 present the findings of this study.
Chapter 5 explains the early development of the profession.
Chapter 6 explains the process by which the Big Four dominated the accounting profession in China.
Chapter 7 explains how the Big Four have sustained their domination. Chapter 7 also presents findings related to the market structure of the accounting profession in China.
Chapter 8 outlines the counter-hegemonic strategies of the indigenous accounting profession.
Chapter 9 analyzes the findings and answers the three subsidiary research questions.
Chapter 10 addresses the implications of the study.