Spirit
FROM PAGE 16
display the CGMA actually downgrade their
résumés, instead of enhancing them, because
the process for getting it makes it bogus.
WHY?
Why would the AICPA Elite run the risk of
foisting this boondoggle on institute members? We’re persuaded that they have an
ulterior motive that runs much deeper than
desperation for revenues.
Specifically, we’re certain beyond doubt
that this CoGMAtor gambit is the initial phase
of a back-door maneuver to transform the
AICPA into an international empire with the
Elite on top of the organization chart. Here’s
the smoking gun evidence: When the institute
and CIMA formed their joint venture, they
called it the “Association for International
Certified Professional Accountants.”
Are those familiar initials an accidental
coincidence? No way.
AICPA 2.0
We dub this joint venture “AICPA 2.0” and
anticipate that if and when the Elite conclude
that the CGMA is established as legitimate,
that workflow, and most likely guidance from
a subject-smart third-party consultant. On
the latter, wait and it might be too late if those
guides are otherwise engaged.
Headache
FROM PAGE 15
FATCA
The target of FATCA is to identify U. S. taxpayers with off-shore domiciles, with the objective of collecting additional tax revenue from
those customer accounts. What’s at stake?
The offending accounts will have to provide
30 percent withholdings for tax purposes
based on four basic criteria: cash payments,
dividend and interest, U.S.-sourced income,
entirely at any point.
they will launch another public relations
blitz to get members of AICPA 1.0 to approve
changing its name and extending membership to (guess who?) all those 100,000
or so new CoGMAtors gratuitously created
by CIMA.
We hope we’re wrong, but we’re irrevocably convinced that this stealthy strategy is for
real. If so, the Elite is undermining the integrity and distinction of being a Certified Public
Accountant, not by accident, and not for any
good purpose.
A “NOT TO DO” LIST
What, then, should outraged members of the
AICPA not do?
1. Do not become a CoGMAtor. Avoid
giving the Elite reinforcement and money
while actually damaging your résumé with
a bogus credential. We guarantee it will not
enhance your status, despite the shrill claims
other wise.
2. Do not resign your AICPA membership. Although you may be thoroughly repelled, even disgusted, the institute needs
as many principled members as possible
to vote this scheme down and provide real
leadership.
3. Do not make any contributions to the
AICPA political action committee. The lack
and gross proceeds (not capital gains) and
payments on specific swap withholdings. The
challenge that firms face with this regulation
is that they must have the ability to fully understand and document their customer data
in order to identify U.S. and non-U.S. institutions often operating in a multi-tiered fund
complex. This will force firms to start looking
at levels of customer information that they
have not previously examined. With the estimated IRS return on FATCA at $10 billion,
firms can expect that this regulation is here to
stay, so firms will need to prepare.
A COLD CHILL
We have to admit that, like most everyone,
our first response to the CGMA was to take
the number of times you have to go back to
a customer for more information. To come
up with a suitable compliance action plan, it
is also critical to understand who is tracking
withholdings and payments, and more generally, the interaction between the fund and
their fund administrator. Finally, firms will
need to ensure that their information systems
can handle the data required to perform the
FATCA reporting.
TAX REFORM AND
COMPLIANCE REPORTING
Cost-basis reporting, Form PF and FATCA all
represent complex issues that require well-
thought-out solutions. If not addressed ap-
propriately, these regulations could impact
situations, it’s hard to say what was the mo-
tivating factor. Rather than trying to hide the
tax, it’s more likely they were trying to hide
the existence of the account, or they didn’t
know they had to file the FBAR,” she said.
“The government is treating the taxpayers in
these cases just as if the unreported tax were
$100,000. The penalty is not on the amount
of income, but on the amount in the account,
so the program is great for the real crook but
not so great for people who simply misunder-
stood their responsibility.” AT
it lightly and dismiss it as just another in the
long line of misguided ideas from the Elite,
such as advocating IFRS and the Internation-
al Accounting Standards Board, the hot-un-
der-the-collar campaign on private company
standards, and CEO Melancon’s pretentious
claims to speak for the whole institute when
he knows both that the membership does
not have a singular view on any issue, and
that there is no process for determining the
members’ opinions.
