Tax Foreign Firms for the Consent of SOCKS

Law Sarbanes-Oxley also named by Joint-stock company Reform accounting and business Information the law on Protection of the Investor 2002, has been signed in the law on July, 30th by 2002 President Bush. After Enron, Arthur Andersen, Global Crossing, and WorldCom, SOCKS promise big corporate and a transparency. Named in honour of the Senator of Floor Sarbanes and Representative Michael G. Oxley, SOCKS concentrate on importance of ethical behaviour in a corporate governance - through the United States and now … abroad.

All countries demanded the government of laws as Sarbanes Oxley. In the Great Britain it - "the Incorporated Code on the Corporate governance," in the Netherlands it - "Code Tabaksblatt," at Germany is "Reform Bilanz" and "Bilanz Kontroll Gesetz." But then, why we require SOCKS abroad as we already have necessary laws It - because the companies with the American staff should guarantee, that all foreign outposts meet federal standards. It is the main reason of the enterprise in circles accounting and business Information management. According to some experts, Sarbanes Oxley the law, probably, has dictated an intricate legal procedure and positions in the American firms. While rules - concrete ideologies which prevent scandals accounting information, the constant stream in policies confuses firms round globe.

The consent of SOCKS sellers and business partners out of the USA - a frightening problem. Risks and the complications involved in the instruction of instructions for plural firms round the world, are huge. The American firms should support themselves abreast actions of data and a data control accompanied by foreign sellers. It complicates a case further as data should be integrated in financials or are entered into balance sheets. Bulky data processing would raise IT the connected expenses.

Global influence of SOCKS hugely. Now, the British firms of the Big four feel consequences of SOCKS in their consulting sectors. http://WWW big4.com-a the website for global graduates Big4 - receives periodic updatings on the latest news and tendencies in firms of the Big four. The big four in the Great Britain under messages has lost one million GBP250 in consulting payments since 2002-a direct result of law Sarbanes-Oxley. Among firms of Big four PricewaterhouseCoopers faced to huge decrease in their consulting payments. The reasons for this decrease can be attributed:

·The has increased cost of the consent which usurped consulting budgets.

Restrictions ·Independence in Sarbanes-Oxley have limited the companies from use of their auditors for many advisory services.

There is an obvious cancellation of a role in consulting payments and control services. If consulting payments have decreased, inspect payments, have considerably increased. The huge 30 %-s' increase in control payments of the Big four was observed within two years. This emission does not compensate the incomes, lost to consult. Consultation was the main force of the Big four in the Great Britain. But in present conditions essential decrease in consulting payments clearly differentiates productivity of the Big four in the Great Britain.

According to the review of the European firm, many foreign firms with their actions listed in the USA, were not ready to perform job in time Sarbanes-Oxley. As the European firms already have certain instructions, the consent of SOCKS is extremely difficult. Some foreign firms tried to be struck off the list the American share markets since the beginning of SOCKS. The foreign firms which are going to, are listed on foreign exchanges, also resist to be listed in the USA. These problems would take losses on the American characteristic of the market and economy. But, the exit of foreign firms from the American exchanges not, facilitates it. According to recommendations of the Commission about securities and stock exchanges, foreign firms, holding 300 or more shareholders in the USA cannot strike off the list the American exchange where they trade.

In the light of these problems of Safety and the Exchange Commission - in its offer to offer the supported rules of change begun with flexibility for the foreign firms listed in the USA, the Commission on securities and stock exchanges would facilitate foreign firms to strike off the list their safety which is sold on the American exchanges. Change of rules of the Commission on securities and stock exchanges to place the European firms would create the state of excitement among the American managements.

The consent of SOCKS should be the "universal" formula - that gives the chance to the governments and managements all over the world to function effectively and in beat. Level, which will disorient the headed approach to weed it, would improve a situation.