IP Poses Risks, Opportunities for Companies' Tariff Planning
As President Donald Trump's tariffs make waves in the world economy, multinational companies are mulling what it could mean for their intangible assets like intellectual property and brand recognition.
The vast majority of corporate value comes from intangibles. In 2020, such assets made up 90% of the value of the S&P 500, according to an often-cited study by IP consultant Ocean Tomo—up from up from just 17% in 1975.
Tariffs don’t directly levy fees on intangibles, but their value is often embedded into imported products, raising the tariffed price. These intangible assets can also come with a smorgasbord of options for companies to locate IP in countries to best blunt the impacts of tariffs or reduce taxes on their business.
On this episode of Talking Tax, Grant Thornton principal Glen Marku talked with reporter Caleb Harshberger about what companies' intangible assets could mean for their tariffs exposure and whether they need to rethink their tax planning.
Do you have feedback on this episode of Talking Tax? Give us a call and leave a voicemail at 703-341-3690.
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KPMG Juggles AI Efficiency Gains With Long-Term Talent Strategy
Big Four accounting firms are racing to integrate next-generation AI technology across their service lines and develop a talent strategy to match the industry's new era.
KPMG is focused on making sure it's balancing efficiency gains because of artificial intelligence with long-term workforce development, according to Sandy Torchia, vice chair of talent and culture at KPMG US. The firm has created new learning opportunities for workers to teach them how to use AI to enhance career growth, she said.
Like its competitors, KPMG has rolled out new autonomous AI that can accomplish tasks with minimal human intervention. The industry's next generation is taking note. The vast majority of KPMG's US interns expect at least 20% of their work to be automated by AI by the time they start full-time positions, according to the firm's recent survey.
Torchia, who is also head of people for KPMG's Americas region, recently stepped into a new role as global co-head of people for KPMG International.
She spoke with Bloomberg Tax reporter Jorja Siemons about how KPMG is helping employees adapt to an AI-led future, as well as the state of hybrid work and the CPA pipeline.
Do you have feedback on this episode of Talking Tax? Give us a call and leave a voicemail at 703-341-3690.
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Cross-Border Tax Evasion Is an Old Story, Roman Scroll Reveals
Proof from an ancient Roman scroll: As long as there have been taxes, there has been tax evasion.
When researchers studied a previously mislabeled scroll, they discovered detailed attorney notes for a case against taxpayers accused of using forged documents and sham transactions between the Roman provinces of Judaea and Arabia to escape taxes on their assets.
The assets in question were enslaved people. The potential punishments included distinctly unmodern measures.
Anna Dolganov of the Austrian Academy of Sciencescq talked with reporter Caleb Harshberger about how scholars made the discovery, details of the scheme, and what they're hoping to uncover next as they continue their research.
Do you have feedback on this episode of Talking Tax? Give us a call and leave a voicemail at 703-341-3690.
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Pharmaceutical Companies Navigate Transfer Pricing as Tariffs Loom
Pharmaceutical companies are scrambling to respond to the Trump administration's tariff threats, seeking to mitigate duties on their products while keeping the impact on their tax bills to a minimum.
The industry has long leveraged complex transfer pricing arrangements to cut down on its tax bills, but now the looming tariffs could spark a major rethink for where companies make their drugs and the location of their crown jewel: the intellectual property.
Pharmaceuticals were exempt from the initial wave of tariffs announced earlier this year, but subsequent months have seen threats of heavy fines and taxes from the administration and a looming national security investigation, which could result in heavy duties on the industry.
In this week's Talking Tax podcast, Cronus Consulting founder Nick Shipley talked with reporter Caleb Harshberger about how pharmaceutical companies are navigating the chaos, and what it could mean for their tax planning and operations. Shipley is a consultant for the pharmaceutical industry.
Do you have feedback on this episode of Talking Tax? Give us a call and leave a voicemail at 703-341-3690.
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Help Wanted: Top Job at IRS Open After Confirmed Chief Splits
One of the most unwanted jobs in Washington is now up for grabs—again.
President Donald Trump's IRS commissioner, Billy Long, exited as the head role last week and is expected to be nominated as the ambassador to Iceland. Treasury Secretary Scott Bessent will fill the job in the interim.
The vacancy at the top of the IRS continues the turbulence the agency has experienced since the start of the Trump administration. Now, the question of who will be nominated next—if at all—remains.
In this episode of Talking Tax, Bloomberg Tax reporter Erin Slowey discusses how the IRS got to this point and what it means for the future of the agency.
Do you have feedback on this episode of Talking Tax? Give us a call and leave a voicemail at 703-341-3690.
Talking Tax, from Bloomberg Tax, is a weekly discussion of the most pressing issues facing tax and accounting professionals. Each week the podcast features discussions with lawmakers, federal regulators, lawyers, and journalists. From the courts to Capitol Hill to the IRS, Talking Tax has it covered.
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