...KPMG's Tax Shelters Tax shelter is a legal way to reduce taxable income, which in turn reduces taxes. By utilizing legal tax shelters, it is possible to avoid taxes without evading them illegally and suffering consequences. However, in the case presented by Tanina Rostain. KPMG has used tax shelters as a form of tax evasion rather than tax avoidance. My goal in this paper is to discuss how the concept of Groupthink and Rationalization played a role in the partners decisions, point out when tax avoidance becomes tax evasion, Describe how CPA firms can provide high quality tax consulting for their clients without crossing the line into tax evasion, and Finally analyze why KPMG (as an organization) failed to prevent this scandal from occurring at their firm. First of all, when discussing concepts like "Groupthink" and "Rationalization" I prefer to start with a brief definition. "Groupthink occurs when a group makes faulty decisions because group pressures lead to a deterioration of “mental efficiency, reality testing, and moral judgment”(Irving). While " Rationalization is a defense mechanism that involves explaining an unacceptable behavior or feeling in a rational or logical manner, avoiding the true reasons for the behavior"(Cherry). As we can see from these definitions, the tax partners in KPMG showed popular symptoms' of groupthink which are: * "Illusion of invulnerability –Creates excessive optimism that encourages taking extreme risks. * Collective rationalization...
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...paper seeks to glean an understanding of corporate tax shelters, in respect to legal and ethical considerations. Tax shelters are often viewed with negative connotations, yet the general public holds different perceptions of the various classifications of tax shelters, tax avoidance, tax evasion, and tax flight (Kirchler, Maciejovsky, & Schneider, 2003). While this suggests a tolerance based on legal concerns, there exists a growing accountability for corporate social responsibility, “whereby organizations consider the interests of society by taking responsibility for the impact of their activities on customers, suppliers, employees, shareholders, communities, and others stakeholders, as well as their environment” (Guliani, 2014, p. 1117). Part of this includes, “companies paying their due taxes and obeying the law” (Guliani, 2014, p. 1120). In order to analyze the ethicality of tax shelters, this paper will introduce a variety of corporate tax shelters, discuss corporate tax shelters in relation to tax avoidance and tax evasion, explore the impact of corporate tax shelters on stakeholders, and examine the affect corporate social responsibility has on tax liability. A Legal and Ethical Examination of Corporate Tax Shelters As each business embarks on a pursuit for profit, companies often find opportunities to reduce tax liabilities in the form of corporate tax shelters. Corporations should be aware that when reducing tax liability, they must consider the legality and the...
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...Kirsten Richardson My Side of the Mountain January 25, 2015 The outdoor field trip I had with the students of East Buchanan was amazing! It blew my mind on much the students were able to link the book to the field trip together. I believe that students should learn survival skills just like Sam did in the book, even though some parts of the book where not realistic. Students of all ages should learn certain survival skills for living, because you may never know when they might be needed. The outdoor day at Fontana is a great for students to learn some of those skills, but also using the book “My Side of the Mountain”. At first I didn’t know what to expect, but I will say it was great experience to attend. I would have to say that one of my favorite parts of the day was ice fishing with the students in my group. It was great to see how the students were so excited about ice fishing, since not many of the have ever been on the ice let alone ice fishing. In the group there was one student who really stood out me during ice fishing because she caught two fish during the activity. She seemed to have a negative attitude about being here and during the first activity, she didn’t want to participate that much. However when she caught her first fish and then her second fish, it seemed her whole attitude changed about the experience she was able to attend. I personally enjoyed moving around on the ice and talking not only with the students, but also the other adults that were also...
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...values, standards, rules, and agreements people adopt for conducting their lives”. Jones (2013) explains that ethics are “moral principles, values and beliefs that people use to analyze or interpret a situation and then decide what is the ‘right’ or appropriate way to behave” (p. 44). The case chosen for this assignment deals directly with violations of ethics as defined above in addition to violations of tax laws and regulations. The case is regarding KPMG and their tax shelter schemes they created to help their clients avoid paying taxes (IR-2005-83, 2013). In the case against KPMG, the IRS found that principles at KPMG had “concocted tax shelter transactions and targeted them to wealthy individuals who needed a minimum of $10 to $20 million in tax losses” (IR-2005-83, 2013). KPMG then would then collect fees, which were a percentage of the desired tax loss, from these individuals and these individuals would avoid paying billions of dollars in taxes owed to the government. Additionally, KPMG “filed or caused to be filed false and fraudulent tax returns that claimed phony tax losses”...
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...homeless and needy * Mannerly (respectful, initiative, helpful) * Great communication skills, and right speaking ability to help the customers * Caring and willing to help others Money * $1 million, at least to start off (buy building, furniture, cooking equipment, and supplies) * 4000 a month, from charities or funds that are willing to provide. Equipment and space * Building with enough space to fill over 150 * Kitchen, heating, A/C, lighting * Daily food to feed more than 100 a day (for both breakfast and dinner services) * Seats and tables * Water and daily accessories (clothing, toothbrush, deodorant) * Beds, pillows and blankets Step 3 Purpose * Our sole purpose is to help feed, shelter and care...
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...B Bradley the Inventor By Francis Allgood Last year, we got a new kid in our class. His name is "B Bradley." We really didn't notice him much until last summer. I am on the same swim team as B. Every morning, we have swimming practice at 7:30. That is just too early. Our coach is very firm--no goofing around! B and I are in the same swimming lesson and live in the same neighborhood. We've both been complaining about lack of sleep. My mom made me go home from practice with B last week. I really wanted to go to my best friend's house, but we car pool with the Bradley's and mom had to take care of some business. I'll never forget that day. B has a nice home--nothing too fancy. But his room is a real surprise. We walked into an immaculate room. He didn't have any carpet or rugs--just linoleum--black and white. All of his walls are painted black. His bunk beds are built into the wall, up high, like a loft. B has one wall that resembles a chemistry lab. His father built him these chrome shelves that go all the way up to the ceiling. And there is a ladder that rolls along the top shelf. He has hundreds of bottles in rich greens, deep blues, and vibrant reds--each neatly labeled. He has a lap top which contains all of his experiments. I said, "Wow, B! What a room." He looked sort of embarrassed and told me that he and his dad planned it just so. He said, "You're in luck! Today we are going to work out the details of the rocket launcher." Of course, I have no idea what...
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...One night I was at work and one of my clients came in the shelter intoxicated, so I asked her to go upstairs to her room and don’t come out until she was sober. A few hours later I heard arguing, yelling and screaming coming from upstairs. I went upstairs to find two of the residents arguing. One of who was intoxicated that I sent upstairs earlier. I asked the ladies to stop over and over again and finally I told them that if they did not stop that I would call the police and have them escorted out of the building. They still did not stop. They went on and on, so I called the police because they were being disruptive. There were also five other residents and their children in the shelter at the time. The factors that I had to consider was that if the two women would have went to jail their children would have went to DCFS. I had no choice because when I asked them to stop, they did not listen. I could not let them put themselves or the other residents in danger. The values that led me to make my decision was that I was always taught to do what is right and that if someone is in danger to get help. The ladies was impacted by my decision because when the police arrived he told them that if they continued, and he had to come back again that he would arrest both of them. The outcome was that the ladies were not arrested, they calmed down and went to their rooms and the rest of the night went...
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...fame to towns surrounding Woodstock and that started the gatherings. Many young people would hitch hike and spend all of their funds they had to get there causing them to in turn, be left out with no food or shelter (Burger, 2011). The main goal for human service was to provide a confidential and fully accessible intervention for crisis, prevention, resources, and support services while being able to utilize the network of volunteers that helped expand strength based programs which allowed individuals to be healthier. Also communities would provide a sense of strong leadership in efforts to help people to achieve the goals of self-sufficiency and self-respect. Family of Woodstock specializes in general needs that are wanting to be met within the community which allows a 24 hours emergency switchboard that would be accessible county wide and also toll free. The specialization is allowing/offering walk-in centers that can help individuals with emergency shelters so that they can help those who are homeless and food programs and provides hot meals. Most of the facilities offer up to fourteen beds that help teenagers who have run away from home and need a shelter to stay at. Women and men who are in the process of recovery end up having access to nineteen beds within the shelter. Those families that are struggling and cannot afford to have a roof over their heads have the option to stay at the twenty-seven bed Family Inn, so that they don’t have to sleep in their cars or they don’t...
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...Street Youth Briefing Note Part 2 | Selina Henry 0852490Shara StoneJUST3120: Community Building PracticesDue Date: 1 /02/15 | Street Youth Briefing Note Part 2 | Selina Henry 0852490Shara StoneJUST3120: Community Building PracticesDue Date: 1 /02/15 | Options Option 1: Kennedy House Youth Shelter Services * Directed to the website when asked for the mission of Kennedy House Youth Shelter; “To enable youth to grow as individuals to contribute as members of the community. This is achieved in our residential and community based programs by providing customized support and building trusting relationships” (Kennedy House Youth Services, 2009). * Main target is homeless youth between the ages of 16-25 one day less a day; they can come in daily from their 16th birthday and stay up until their 25th birthday (Rosenthal, 2015). * This service is self-directed according to Rosenthal (2015) residents have the option to choose whether they come to the shelter unless there is a ban. This service uses a harm reduction approach; staff consider client-staff relationship a key factor when working with youth. * According to James Rosenthal community is seen as an active partnership with immediate community members (Rosenthal, 2015). Kennedy House works towards addressing programs in the community with a zero tolerance for youth who break the policies of the agency. * When speaking with Rosenthal he explained that Kennedy House has a strong relationship with...
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...Rev. Rolando E. Santiago Chief Executive Officer Kalinga ng Ama shelter for Children I. INTRODUCTION The Kalinga ng Ama Shelter for Children is a duly registered Social Welfare Agency that is manned by volunteer workers and one social worker with the commitment to be of service to humanity in the name of Christianity. It’s operation is being funded by voluntary contributions from us, our families, friends, churches, and individuals who see the need and who respond accordingly. It is dedicated to serve the street children, poor and abused children, abandoned, as well as neglected children, and those who voluntarily present themselves to the shelter because they have a desire to be nurtured through a Godly and Biblical Family Atmosphere. The year 2005 is the first year of formal operation. II. SALIENT ACCOMPLISHMENT a. In response to organizational objectives, programs implemented and services extended, corresponding activities and number of clients served per service during the year as compared to the targets. |PROGRAM |ACTIVITY |RESULTS | |RESIDENTIAL |Repairs and Development of |The City of Dagupan under Mayor Al Fernandez finally noticed the shelter and helped in the| | |shelter |improvement and repairs of facilities as well as...
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...Sherrol white Conferences I attend the poverty simulation and I really enjoyed it. My role was a 19 year old girl who was and high school dropout and had and had one year old son. She got evicted because her boyfriend left her and she couldn’t afford to pay the bills on the trailer. My first job was to find affordable housing. That was frustrating because I got tired of waiting in those long lines. I also had a raggedy car so transportation was hard for me to get to the different places. I got so mixed up with trying to find housing that I forgot to feed my son and they took him away. I was glad I found housing because I only had to weeks to stay in the shelter. Once I found housing I got my son back. Looking for a job was also frustrating. I wanted to look for a job so that I would provide a better life for my son. Looking for a job was frustrating because every time I went there were no positions available. I enjoyed playing this role because I got to see how it would be if I was single mother raising a child with no help but a little money from the government. What I got out of the conference is it that it is very hard to make it day by day being poor. You get discouraged because you feel like you can’t do better and your always going to be poor. These were real people we were playing and they are struggling day by day. I also found that we need more resources to help the poor because there are not that many and depending on the government is...
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...One night I was at work and one of my clients came in the shelter intoxicated, so I asked her to go upstairs to her room and don’t come out until she was sober. A few hours later I heard arguing, yelling and screaming coming from upstairs. I went upstairs to find two of the residents arguing. One of who was intoxicated that I sent upstairs earlier. I asked the ladies to stop over and over again and finally I told them that if they did not stop that I would call the police and have them escorted out of the building. They still did not stop. They went on and on, so I called the police because they were being disruptive. There were also five other residents and their children in the shelter at the time. The factors that I had to consider was that if the two women would have went to jail their children would have went to DCFS. I had no choice because when I asked them to stop, they did not listen. I could not let them put themselves or the other residents in danger. The values that led me to make my decision was that I was always taught to do what is right and that if someone is in danger to get help. The ladies was impacted by my decision because when the police arrived he told them that if they continued, and he had to come back again that he would arrest both of them. The outcome was that the ladies were not arrested, they calmed down and went to their rooms and the rest of the night went smooth....
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...to get up and move around so he won’t feel so stiff and to get his blood moving. Walter runs his fingers through thick graying hair and rubs his weathered face feeling the whiskers. He is desperate need of a shower and shave, it will make him look and feel younger. He pulls himself together finds himself a restroom to clean himself up to look presentable. He has his routine; gets up and goes to a familiar shelter that he has been to in the past hoping they will a warm bed for him providing protection from the harsh elements. Walter arrives at the shelter and sees some familiar faces. He sees an old and greets warmly “Hi Amos, nice to see you again, it’s been a long time” he replied. “Yes, it’s been a long time, it’s so nice to see you’re still around” Amos says laughingly. “Say, where’s the nice young lady who I used to see working here?” asked Walter. “She’s here somewhere, I just saw her a few minutes ago” replied Amos. “Oh there she is Walter” “she’s walking to her office” Walter makes his way down the corridor to the office of the homeless shelter, hoping...
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...that saw him as trash. Never letting the words of others bring him down the old man perused on day after day in his routine. Every night after a long day his wife would run a hot tub of water and bathe her husband. On Wednesday’s the old man and his wife would wake up extra early and take what little money they had to the town shelter. There was a lady that worked at the store across from the shelter, her husband owned several street side stands and they were quiet wealthy. She would wait outside the store every Wednesday morning waiting on the old man and woman and say the same thing “you should keep your money, you all are just as poor”, and the old man would respond the same every time “we have what we need, and would like to help others have the same”. Sticking her nose up to the old man the thin blond haired lady would turn around and walk in side. His wife began to question him, “maybe she’s right, we don’t have much more than they do” she would say, dismissing her comment he would tell her she was talking nonsense. It was a regular Wednesday except the woman wasn’t outside; the husband looked to his wife in confusion and continued inside the shelter. They went home and...
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...Saves Shelters English 112 Professor Tara Ciccarone DeVry University Two women’s shelter that have basically been on life support for nearly two decades are now fighting to keep their doors open as more and more debt piles up. On Wednesday, October 16th, 2013, Clara Kirk, a 72-year old woman, said she was having difficulties paying for two different gas and water bills at her shelters that she runs to provide for women and children in need. One of the bills was roughly $21,000 and another bill was around $11,000 (Hutson, 2013). Due to the fact that she was unable to take care of those bills, the gas was shut off on Wednesday, October 16, 2013. This left all of the helpless people without heat or hot water which forced them to go to nearby cafeterias so they could get cleaned up. Clara’s Place, which houses 19 women and children, is one of the two shelters that have run out of gas. The other shelter – Clara’s House – also has approximately 40 women and is also in devastating financial misfortune. Both of these shelters have struggled financially in recent years, facing punishments from the town for building code violations and consequences from the IRS for being overdue on their payroll taxes (Hutson, 2013). With temperature going below 30 degrees, residents of both of these shelters finally had something be happy for. An anonymous donor has contributed a rather large sum of money in order to keep the gas successfully running at the two Chicago shelters (Garcia...
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