In a LinkedIn post published March 3, CLA CEO Jen Leary — who graduated wayyyy […]
Tag: beefs
EY Split Update: There’s a Battle Royale Going Down This Week
Does anyone still care about the EY split? Did anyone ever? Well, here’s your semi-weekly […]
You Know Things Are Bad at EY When Its US and Global CEOs Are Beefing
We now know the reason, courtesy of the Financial Times, why Kelly Grier decided not […]
Guy Sues KPMG Over Getting Left Out of the Team Group Chat
Greg Eldridge — an eight-year vet of the House of Klynveld — has sued KPMG […]
The IMA Is Beefing With the AICPA and NASBA Over the Future of Accounting Education
Today, the AICPA and NASBA unveiled their highly anticipated CPA Evolution Model Curriculum — CPAEMC […]
AICPA Backs Down From Its Longstanding Beef Against Tax Preparer Regulation
In what could easily be the longest-running turf war in accounting history, the AICPA has […]
Grant Thornton to Have Rat Problem for Foreseeable Future
A little bad news for Grant Thornton today: The towering rat balloon—six to 25 feet […]
Thanks to the IRS, Republican Presidential Candidate Herman Cain Only Made Enough Money to ‘Buy New Golf Clubs and Move to Atlanta’
Soon-to-be failed Presidential candidate Herman Cain is best known for being the former CEO of Godfather’s Pizza. When he took the job in 1986, the Journal reports “Mr. Cain cut costs and closed unprofitable locations and said that he returned the business to profitability in just 14 months.” An impressive feat to be sure and he continued to sling pie as the CEO until 1996 when he presumably figured he could cash in nicely.
Unfortch for Cain things didn’t really work out. And whose fault would that be? The IRS, of course!
Mr. Cain said that in 1996 he struck a deal to sell his stake in Godfather’s to his partners. That’s when the IRS showed up and commenced an audit of his tax return for the year 1994, coincidentally the year he publicly challenged President Clinton on the impact of his health-care reform plan. Simultaneous audits of Godfather’s and Mr. Cain’s partners were quickly concluded, but Mr. Cain said that the audit of his personal finances dragged on until 1999.
When he finally concluded the sale of his Godfather’s stake, Mr. Cain said that its value had fallen by 75% and yielded only enough money for him to “buy new golf clubs and move to Atlanta.” As for the IRS, they claimed he owed $1.8 million in back taxes, but he said that as soon as he appealed this decision, they immediately dropped the claim and asked only for $40,000 to cover interest on “the money I didn’t owe.” Outraged, he nevertheless paid the bill to resolve the matter. He said that such treatment at the hands of the IRS happens all the time.
Godfather vs. Tax Man [WSJ]
BDO Is Not Impressed with KPMG’s Business Tactics in Brazil
BDO announced a new member firm in Brazil today because…well, KPMG kindasorta poached their last one. Well, BDO Global CEO Jeremy Newman has had it up to here (i.e. eye-level) and wanted to point out that A) this not uncommon:
“BDO is not the first firm to have suffered as a result of our larger competitors using their dominant financial position to buy market share and we have expressed our concerns about this in BDO’s recent submission to the European Commission’s Green Paper on the role of the audit profession,” said Newman.
B) this is some shady dealings:
“These tactics are not driven by client needs but by one firm’s wish to buy market share and presumably achieve further economies of scale. We are concerned that when one firm looks to dominate it reduces choice for clients and leaves the market worryingly dependent on just a few players.
and C) these aren’t just fightin’ words. The most interesting accounting firm in the world will be taking action:
“BDO will be lodging an objection to this deal with the Brazilian competition authorities.”
Challenge extended.
BDO lines up complaint against KPMG Brazil [Accountancy Age]