Tax Quarry

Ernst &Young, we at TaxQuarry want to say congratulations on being ranked the 2012 best accounting firm to work for!  

We know that this is a tremendous accomplishment.  This is particularly momentous in a tough economy where many employees have become disenchanted with their jobs and are more reluctant to shower praises on their employers. 

According to an article written by Jacquelyn Smith for Forbes Magazine which quotes the senior finance editor at Vault.com, E&Y used a fairly simple formula to beat out the competition:

Ernst & Young took the No. 1 spot thanks to the company’s kinder corporate culture and good work-life balance. “Ernst & Young makes working long hours more manageable for employees, treats its employees a bit better than other big firms, and provides excellent training to its employees and the ability to take on as much work as they can handle, which in turn can lead to fast career growth. It’s also incredibly prestigious”

Keep up the good work!

Shanghai Skyline

A discussion about international tax would not be complete without a discussion about tax treaties and where they fit into global commerce and trade. 

Tax treaties, on a very basic level, are agreements between two countries that provide rules that govern how each country will tax a certain item that could potentially be taxed by both countries.  The countries are often referred to as the “contracting parties”. 

Generally, a treaty provision will reduce and sometimes exempt from tax the amount of the tax liability that was imposed on a taxpayer through either country’s withholding tax system.  

Because a higher tax rate usually will apply to an item of income that is not subject to a treaty, it is an important step in tax planning to confirm whether there is a reciprocal treaty in effect with the country where the income is derived in order to have a complete understanding of your ultimate tax obligation.   

The United States has income tax treaties with a number of foreign countries.  Below is a list of the countries with which they have a treaty (current as of December 31, 2011) and the effective dates of these treaties:

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