I’m a huge fan of the Peacock (formerly NBC) soap opera “Days Our Lives.” The show, which began in 1965 and which still airs five days a week, chronicles the adventures of the residents of Salem, USA.
Many of the storylines—such as devil possessions and, yes, people coming back from the dead multiple times—are outlandish. Almost no one is truly ever dead in soap land. I won’t go into too many details, though, because that would take all the days of my life.
Laugh if you will, but “Days” has been part of my story for more than 20 years—Marlena Evans-Black, John Black, Paulina Price, Gabi Hernandez, and all the other Salemites almost feel like family. The actors themselves are some of the hardest-working people in the business, putting in far more hours for far less glory and on a smaller budget than actors in prime-time TV.
The show films several months in advance, so it didn’t stop airing new episodes even during the early part of the pandemic. Having a place to “visit” day after day, even if only for an hour, gave me some much-needed routine at a time when it wasn’t safe to do anything or see anyone.
At Bloomberg Tax, we like to be part of your regular routine. We have a daily source of commentary and insightful analysis on federal, state, and international tax issues, along with other great content about and for the tax community. You might even say we’re “like sands through the hourglass"—without all the melodrama.
The Exchange… It’s where great ideas intersect.
—Melanie Cohen
Quick Trivia
With “Days of Our Lives” leaving NBC last fall, there are now only three soap operas still airing on daytime network TV. What are they?
Answer at the bottom.
Special Commentary
The IRS has long struggled to secure enough resources to ensure tax laws are enforced fairly and Americans get the level and quality of service they deserve. New multi-year funding from Congress will allow the agency to improve customer service and compliance in support of law-abiding taxpayers, says former IRS Commissioner Charles Rettig.
State Insights
Disney’s decision not to fight for control of the Reedy Creek Improvement District shows the company has a lot more to lose, especially in Florida—and its political independence may be a small price to pay for a smoother relationship with the state’s government, says Shepard, Smith, Kohlmyer & Hand, P.A.'s Jacob Schumer.
While the Kansas City Chiefs beat the Philadelphia Eagles in Super Bowl LVII, the players, coaches, and trainers on both teams ultimately lost revenue to the state of Arizona through the “jock tax,” levied on nonresident professional athletes who engage in profitable athletic competition in any state, says Addison Fontein of McGuireWoods LLP.
Federal Insights
Tax professionals need a solid game plan to handle the complexities of reporting cryptocurrency losses for their clients. Not doing so could cost practitioners valuable time and open the door to misstatements on tax returns, says Accointing by Glassnode’s David Canedo.
As executives receive their annual bonuses, it can be beneficial to know the general tax rules and tax planning opportunities for nonstatutory stock options, says EisnerAmper’s Alyssa Rausch.
Global Insights
After recent significant changes to the UK system, Alexander Hood of Fragomen looks at the immigration landscape for private individuals and families wishing to invest, live, or work there, and the tax implications associated with relocation.
The UK tax authority has been receptive to stakeholder feedback on the new Qualifying Asset Holding Companies regime and has been engaging with the investment community to ensure the rules work as intended. 2023 may well be where it all starts for the funds and asset managers who should have a UK QAHC in their playbook, say Sidley Austin LLP’s Oliver Currall, Noam Waltuch, and Fraser Tudor.
Value-added tax reforms proposed by the European Commission include EU digital reporting requirements based on e-invoicing, new VAT measures for the platform economy and e-commerce, an extension of the VAT one-stop shop return, and other measures to reduce compliance costs for business. Aiki Kuldkepp of Grant Thornton explains the new rules.
Aditya Singh Chandel and Suhail Bansal of AZB & Partners look at the proposal to extend the applicability of the Indian angel tax to nonresident investors and consider what repercussions this may have for Indian startups and foreign investment.
Commentary
For decades, the general anti-avoidance rule has been an effective tool for preventing abusive tax avoidance in Canada. But proposed changes from the government and a ruling from the Supreme Court of Canada are likely to alter the country’s tax landscape, say Osler’s Pooja Mihailovich and Joanne Vandale.
With little to no official guidance on applying sales tax to metaverse transactions, tax professionals need to perform case-by-case analyses—especially because many tax administrations and legislators don’t know what the metaverse is nor how it operates, says Aleksandra Bal of Stripe in the latest edition of “A Closer Look.”
Columnists
President Joe Biden last week called for quadrupling the excise stock buyback tax to 4%, but that’s not enough, writes Andrew Leahey. A significantly higher excise tax on stock repurchase programs will help reduce income inequality and will hold corporations accountable in the stock market by depriving them of a tool to synthetically boost share prices.
How often do we stop to reflect on the socioeconomic impacts of financial secrecy and tax avoidance? Last week’s inaugural meeting of the DC Forum attracted scholars, journalists, and civil society leaders who think about this question a lot, says Don Griswold.
Save the Date
Telling someone an uncomfortable truth can be difficult—especially in a professional setting. To avoid an argument or to spare someone’s feelings, sometimes it’s easier to just let things go. But it also can lead to greater problems down the road.
There are ways to communicate your message without triggering a “fight or flight” response in the other person—or in yourself. Hear more about some of those strategies by joining Bloomberg Tax and Bloomberg Law Insights and Commentary teams on Feb. 23 at noon ET. We’ve recruited an expert who specializes in helping organizations respond successfully to the challenges of continuous change.
Reader Responses
At The Exchange, we welcome responses from our readers and encourage diversity and civil discussion. We are especially interested in responses that add to the conversation, or introduce a different point of view. If you have a response to one of our published Insights, we’d love to hear from you.
Career Moves
Ten attorneys have been appointed to a variety of positions in the IRS Office of Associate Chief Counsel (International).
Katherine Patnaude was promoted to audit partner at PKF O’Connor Davies in Wethersfield, Conn.
Patrick Anzevino has joined Porter Wright as a member of the corporate department in Columbus, Ohio.
David Blair, David Fischer, and Dwight Mersereau have joined Eversheds Sutherland as partners in the tax practice group in Washington, D.C.
Mona Dajani and Jorge Medina have joined Shearman & Sterling as partners in the project development and finance practice in New York and the Bay Area, Calif.
Steven Janssen has been named managing director of the Tampa Bay, Fla., office of CBIZ.
If you are changing jobs or being promoted, let us know. You can email your submission to TaxMoves@bloombergindustry.com for consideration.
Spotlight
This week’s Spotlight is on Alex Baulf, an international indirect tax expert who is the senior director of global indirect tax at Avalara. Baulf started his tax advisory career at Deloitte and was on the global indirect tax leadership team at Grant Thornton before joining tax technology company Avalara in November 2021.
News
It’s been another busy week in tax news from state capitals to Washington. Here are some stories you might have missed from our Bloomberg Tax news team.
*Note: Your Bloomberg Tax login will be required to access Tax News.
- IRS Commissioner nominee Danny Werfel promised transparency if confirmed to a job putting him in the crosshairs of a partisan battle over how to spend $80 billion in new funding.
- Ernst & Young’s plan to break out its consulting practice as a global advisory behemoth threatens to unleash a shakeup of the labor market for accountants and consultants at the Big Four firms and beyond.
- Annual tax revenue under the two-pillar global tax deal could reach $200 billion, twice the original forecast, the OECD said Wednesday.
- The IRS victory at the US Tax Court against 3M Co. over millions of dollars in taxes likely won’t be the last word on the issue—tax attorneys anticipate appeals court fights and a possible Supreme Court challenge.
- The current farm bill expires at the end of September, and lawmakers want to use that momentum to get several tax policies across the finish line.
- Singapore intends to raise its effective tax rate for multinational firms to 15% starting 2025, in line with a global agreement to increase the floor rate.
Wish List
What’s on our Bloomberg Tax Insights wish list right now? For February, we’re looking for articles with an international focus. With the release of budgets in foreign countries around the world, we want to know what changes in tax policy they are proposing and how those changes would affect your practice and those of your clients.
Our Insights articles—about 1,000 words—are written by tax professionals offering expert analysis on current tax practice and policy issues, tax trends and topics, and tax and accounting firm practice and management. If you have an interesting, never-published article for publication, we’d love to hear about it. You can contact our Insights team at TaxInsights@bloombergindustry.com.
Our Team
We talk about tax a lot. But there’s a lot more that you might hear us talking about if you popped into one of our Teams meetings. Here’s a quick look at what some of us are watching, reading, and listening to this week:
Watching:
- Katharine Butler (Acquisitions Manager, Insights and Commentary, Bloomberg Tax): I went to see “Lemons Lemons Lemons Lemons Lemons,” a play directed by Josie Rourke about a couple living in a society where everyone has been restricted to 140 words a day. It’s funny and dark at the same time.
- Melanie Cohen (Editor, Insights and Commentary, Bloomberg Tax): “Days of Our Lives,” of course! And I’m excited about the impending return of Bo and Hope next month.
- Maria Menezes (Practice Lead, International Tax, Bloomberg Tax): “Your Place or Mine,” the cheesy new Netflix film with Reese Witherspoon and Ashton Kutcher. It’s great if you want “light” entertainment.
Reading:
- Andrew Leahey (Columnist, Insights and Commentary, Bloomberg Tax): “Securities Operations: A Guide to Trade and Position Management” by Michael Simmons. I’m trying to get to the bottom of this whole “securities market” thing.
- Rebecca Baker (Editor at Large, Insights and Commentary, Bloomberg Tax): “Liarmouth: A Feel-Bad Romance” by John Waters.
Listening:
- David Jolly (Editor, Bloomberg Tax): “Sold a Story: How Teaching Kids to Read Went So Wrong.” A really great, totally maddening American Public Media podcast about how a generation or two of American kids didn’t really learn to read, because reasons.
- Amanda Iacone, (Reporter, Bloomberg Tax): I’ve been bingeing two podcast series. “The Disconnect” explores how Texas’ unique form of utility deregulation contributed to the state’s deadly blackout in 2021 and how much worse it could have been. And “Dolly Parton’s America” explores how the iconic singer-songwriter manages to both embrace and defy stereotypes plus what we can learn from her story about our own American experience.
Quick Trivia Answer
There are three. “The Bold and the Beautiful” and “The Young and the Restless” air on CBS, and “General Hospital” airs on ABC.
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