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Article #3:
http://www.accountingtoday.com/news/KPMG-Foresees-Tax-Compliance-Problems-Financial-Industry-57569-1.html
KPMG FORESEES TAX COMPLIANCE PROBLEMS FOR FINANCIAL INDUSTRY
By Accounting Today Staff | March 9, 2011
Recent policy changes in areas such as cost basis reporting, the Foreign Account Tax Compliance Act, and the Regulated Investment Company
Modernization Act of 2010 are likely to create significant
compliance, reporting and monitoring risks and consume
resources as companies continue to move toward economic
recovery, according to KPMG.
Successful management of these developments will be even
more challenging for finance and tax departments as they
will simultaneously need to work seamlessly with other areas
of their businesses to respond to the tax ramifications arising
from the Dodd-Frank Wall Street Reform and Consumer
Protection Act.
“U.S. financial institutions will face many new tax challenges
in 2011 and beyond as a result of various legislative and
regulatory developments over the past several years,” said
Scott Marcello, national leader of KPMG LLP’s Financial Services
practice. “We believe that maintaining management attention
on the tax compliance and operations-related aspects of
FATCA, cost basis reporting and the Regulated Investment
Company Modernization Act—while also monitoring and
responding to the tax ramifications of ongoing regulatory
change, such as the Dodd-Frank Act—will be challenging and
vital to achieving business growth and success.”
In a recent KPMG survey of mostly Fortune 1000 company
executives, more than two-thirds (67 percent) cited tax policy
as either “extremely,” “very,” or “somewhat” difficult to
address.
“Nearly all business leaders are concerned with the vast
majority of public policy changes and re-examining the way
they operate, as a result of these changes,” said Marcello.
“For financial services companies, tax matters have broad
and significant implications and are likely to move among the
top rung of leadership priorities.”
