Day after day, we read reports of disconcerting financial and economic events worldwide. Certainly, Europe takes the lead with its continuing problems of financial system instability.

Companies often deduct their annual bonus expense the year prior to paying the bonus. But should they? The answer is not clear, and the IRS has changed its position on this issue.

Does your company qualify as a manufacturer?

The election of Francois Hollande as President of France has sparked a debate in the Euro-zone on austerity and growth. Those who argue for austerity or ‘fiscal prudence' claim that debt management is key to restoring investor confidence and, therefore, long-term prosperity. Borrowing more is not an acceptable response to a crisis caused by over-borrowing and over-spending. In contrast, those who prefer greater stimulus claim that, without further investment, growth will simply not return, and without some government stimulus, no economy can pull itself out of recession to achieve long-term stability and growth.

A business or intangible asset is typically valued using a combination of the income, market and asset approaches. A valuation conducted specifically for tax purposes introduces added layers of complexity due to nuances specific to this type of valuation, often causing critical assumptions and values to differ from valuations conducted for other purposes.

The Internal Revenue Service is focused on closing the tax gap. One way it hopes to do so is by collecting under-withheld employment taxes.

As the Chancellor delivered the 2012 UK Budget today, he referenced Adam Smith's progressive system of taxation. However, despite modest signs of growth in the UK economy, there is very little in the purse for additional measures to assist business.

The UK Tax Authority (HMRC) recently published a statistical study on transfer pricing (TP) trends in relation to the audit process, Advanced Pricing Agreements (APAs), Advanced Thin Cap Agreements (ATCAs) and Mutual Agreement Procedures (MAPs). A look at the results provides a good indication of where HMRC is focusing efforts and what UK businesses need to know about TP audits.