Understanding states’ various approaches to accountant-client privileges can make the difference in protecting communications from disclosure in litigation. In this edition of A Pinch of SALT, Sutherland SALT’s Pilar Mata and Melissa Smith examine the scope and breadth of accountant-client privileges that have been adopted by some states.
Georgia
Peach State Politics: Georgia Tax Reform Effort Dies on the Vine
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Georgia’s grand experiment to comprehensively rewrite its state tax code came to an anti-climactic halt on April 11, 2011, when the Georgia House of Representatives adjourned without taking up the tax reform bill. In its final form, the bill was unable to withstand a substantial political attack with uncertainty as to the net revenue impact of the bill and whether changes in the personal income tax calculation would create a tax increase on the middle class.
The 10-month tax reform saga began in June 2010, with legislation creating the Special Council on Tax Reform and Fairness for Georgians (the Council), which issued a comprehensive report on January 7, 2011, generally recommending a transition from income taxes to more broad-based consumption taxes. (See Sutherland’s January 10, 2011 Legal Alert for detailed coverage of the Council’s report). The original tax reform bill, H.B. 385, was originally introduced to the Special Joint Committee on Georgia Revenue Structure (the Joint Committee) mirroring the recommendations of the Council and intending to be revenue neutral.Continue Reading Peach State Politics: Georgia Tax Reform Effort Dies on the Vine
Get Out Your Dustpan: Georgia Bill Proposes Sweeping Tax Reform
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Proposing to significantly overhaul Georgia’s tax code, including an interesting attempt to eliminate sales tax exemptions for “Holy Bibles” and Girl Scout Cookies, H.B. 385 was introduced on February 24. The 127-page bill is intended to be revenue neutral and largely mirrors the recommendations of the Special Council on Tax Reform and Fairness for Georgians (the Council) (see Sutherland Legal Alert, January 10, 2011 for detailed coverage of the Council’s report). H.B. 385 would eliminate most sales tax exemptions and subject certain services to tax, reduce or eliminate most income tax credits and personal deductions, phase in lower personal and corporate income tax rates, and implement a communications services tax. The bill, introduced by the Special Joint Committee on Georgia Revenue Structure (the Committee), is expected to be amended while still in Committee, but will then require an up or down vote when introduced to both houses of the Legislature.Continue Reading Get Out Your Dustpan: Georgia Bill Proposes Sweeping Tax Reform
Georgia Proposes to Shift Rules on Combining Income
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On October 28, 2010, the Georgia Department of Revenue proposed to amend its regulation entitled “Shifting of Income” (Ga. Comp. R. & Regs. 560-7-8-.07). This proposed amendment is intended to be a “clarification” of the Department’s current authorities to adjust the income between related parties and require combined reporting if other methods will result in distortion of separately reported income under O.C.G.A. § 48-7-58. However, the proposed amendment’s language states that the “Commissioner may combine the income of any affiliates in order to compute the net income properly attributable to this state” and appears to significantly expand the Commissioner’s authority beyond the limits contemplated by Georgia statutes and case law.Continue Reading Georgia Proposes to Shift Rules on Combining Income