The Lone Star Employer Report focuses on labor and employment issues (domestic and global) affecting Texas employers.
Expatriate Taxation – Don’t Be a Cowboy!
In a recent Tax Court Memorandum decision, Gerencser v. Commissioner of Internal Revenue, an expat was hit with penalties taking a US federal income tax position that was too good to be true and not seeking professional tax assistance. As failure to properly compute taxes in some jurisdictions may subject an employer to liability, companies should take time to review, and even revise if necessary, their global mobility policies to require employees to use the company’s tax return preparer.
Terminating the Expat Assignment: 5 Things to Consider
As companies look to reduce costs incurred from their expatriate population, there are five factors that need to be considered before they bring their employees back home. These are: (1) review the assignment letters and policies, (2) check the local employment contracts, if any, (3) assess the personal impact of early termination on the expat and his/her family, (4) address questions on job security, and (5) understand the dispute resolution process.