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- Creators: School of Accountancy
- Creators: Lowe, Jordan
- Member of: Barrett, The Honors College Thesis/Creative Project Collection
- Resource Type: Text
Description
The price charged between related parties for the transfer of goods, services, or intangibles, is known as a transfer price. A taxpayer is required to set its transfer price at arm's-length, similar to what would be charged to an unrelated party, to prevent a taxpayer from greatly reducing its global tax by shifting profits from its U.S. entity to an entity located in a jurisdiction with a lower tax rate. Section 482 of the Internal Revenue Code and its associated regulations advises taxpayers on the various methods to calculate its transfer price. These include: the Comparable Uncontrolled Transaction (CUT) method, the Comparable Profits Method (CPM), and the Profit Split Method. Section 482 also grants the Internal Revenue Service (IRS) the authority to allocate a corporation's transfer price if it is not at arm's-length. With millions and sometimes billions of dollars at stake, it is important for the IRS to resolve the incredibly complex issue of transfer pricing without placing an unnecessary burden on U.S. corporations.
ContributorsWilliams, Gary Spencer (Author) / Goldman, Donald (Thesis director) / Levendowski, Glenda (Committee member) / Barrett, The Honors College (Contributor) / WPC Graduate Programs (Contributor) / School of Sustainability (Contributor) / School of Accountancy (Contributor)
Created2014-12
Description
Executive compensation is broken into two parts: one fixed and one variable. The fixed component of executive compensation is the annual salary and the variable components are performance-based incentives. Clawback provisions of executive compensation are designed to require executives to return performance-based, variable compensation that was erroneously awarded in the year of a misstatement. This research shows the need for the use of a new clawback provision that combines aspects of the two currently in regulation. In our current federal regulation, there are two clawback provisions in play: Section 304 of Sarbanes-Oxley and section 954 of The Dodd\u2014Frank Wall Street Reform and Consumer Protection Act. This paper argues for the use of an optimal clawback provision that combines aspects of both the current SOX provision and the Dodd-Frank provision, by integrating the principles of loss aversion and narcissism. These two factors are important to consider when designing a clawback provision, as it is generally accepted that average individuals are loss averse and executives are becoming increasingly narcissistic. Therefore, when attempting to mitigate the risk of a leader keeping erroneously awarded executive compensation, the decision making factors of narcissism and loss aversion must be taken into account. Additionally, this paper predicts how compensation structures will shift post-implementation. Through a survey analyzing the level of both loss- aversion and narcissism in respondents, the research question justifies the principle that people are loss averse and that a subset of the population show narcissistic tendencies. Both loss aversion and narcissism drove the results to suggest there are benefits to both clawback provisions and that a new provision that combines elements of both is most beneficial in mitigating the risk of executives receiving erroneously awarded compensation. I concluded the most optimal clawback provision is mandatory for all public companies (Dodd-Frank), targets all executives (Dodd-Frank), and requires the recuperation of the entire bonus, not just that which was in excess of what should have been received (SOX).
ContributorsLarscheid, Elizabeth (Author) / Samuelson, Melissa (Thesis director) / Casas-Arce, Pablo (Committee member) / WPC Graduate Programs (Contributor) / School of Accountancy (Contributor) / Barrett, The Honors College (Contributor)
Created2018-12
Description
The Value-Added Tax (VAT) is a broad based consumption tax on goods and services. Similar to a Retail Sales Tax, the VAT has the final burden of the tax fall on the end consumer. However, the tax is collected throughout stages of production, which means the government collects it sooner and the retailer is not the only company remitting tax to the government. As of this writing, the VAT is used in over 150 countries around the world. The United States is the only developed nation that does not have a federal VAT. While there are several plans for VAT implementation in the U.S., one of the more promising is the Competitive Tax Plan by Michael Graetz. In it, Graetz suggests a 10 to 14 percent VAT in order to pay for reduction in corporate income tax and an increase of the individual tax filing thresholds to $50,000 for single taxpayers and $100,000 for married taxpayers. As the nation goes further into debt, it is important that the United States looks for alternative sources of revenue. A VAT could prove to be the best option, as it is a proven solution used by many other nations.
ContributorsBlodgett, Laura Ann (Author) / Frost, Donald (Thesis director) / Dallmus, John (Committee member) / WPC Graduate Programs (Contributor) / W. P. Carey School of Business (Contributor) / School of Accountancy (Contributor) / Barrett, The Honors College (Contributor)
Created2017-05
Description
Given its impact on the accounting profession and public corporations, Sarbanes-Oxley Act of 2002(SOX) is a widely researched regulation among accounting scholars. Research typically focuses on the impact it has had on corporations, executives and auditors, however, there is limited research that illustrates the impact SOX may have on average Americans. There were several US criminal code sections that resulted from the passing of SOX. Statute 1519, which is often referred to as the "anti-shredding provision", penalizes anyone who "knowingly alters, destroys, mutilates, conceals, covers up, falsifies, or makes a false entry in any record, document, or tangible object with the intent to" obstruct a current or foreseeable federal investigation. This statute, although intended to punish behavior similar to that which occurred in the early 2000s by corporations and auditors, has been used to charge people beyond its original intent. Several issues with the crafting of the statute cause its broad application and some litigation even reached the Supreme Court due to its vague wording. Not only is the statute being applied beyond the intent, there are other issues that legal scholars have critiqued it for. This statute is far from being the only law facing these issues as the same issues and critiques are found in the 14th amendment. Rewriting the statute seems to be the most effective way to address the concerns of judges, lawyers and defendants regarding the statute. In addition, Congress could have passed this statute outside of SOX to avoid being seen as overreaching if obstruction of justice related to documents was actually an issue outside of corporate fraud.
ContributorsGonzalez, Joana (Author) / Samuelson, Melissa (Thesis director) / Lowe, Jordan (Committee member) / School of Accountancy (Contributor) / Barrett, The Honors College (Contributor)
Created2016-12
Description
This paper consists of a literature review, wherein four papers surrounding Motivation Crowding Theory (MCT) were read and analyzed. The paper then goes into an analysis of a survey I conducted. The survey consisted of three main questions with three sub-questions for each, and all attempted to find a "limit" to MCT. However, results for the survey were ultimately inconclusive. The paper concludes with lessons learned in conducting research and surveys in particular, as well as a nod to the relevancy of MCT in business and personal applications.
ContributorsSmith, Mallory Anne (Author) / Reckers, Phil (Thesis director) / Samuelson, Melissa (Committee member) / Lowe, Jordan (Committee member) / School of Accountancy (Contributor) / Department of Information Systems (Contributor) / WPC Graduate Programs (Contributor) / Barrett, The Honors College (Contributor)
Created2020-05