BNA RESTRUCTURES

Arlington, Va. - Tax and accounting publisher BNA has appointed a new chief information officer, established a new product research and development unit headed by a new chief product officer, and appointed six vice presidents.

The BNA board of directors named Carol A. Clark as the company's executive vice president and chief information officer. Clark, formerly vice president for resource management, will be responsible for ensuring a strategic and reliable technology infrastructure across BNA.

Audrey Hipkins has been appointed vice president and chief product officer. She will be responsible for the newly created product R&D unit.

One of the six new vice presidents, Darren P. McKewen, has been appointed vice president and group publisher of tax and accounting. He has guided BNA's tax and accounting business since 2005. He also has been charged with coordinating strategy across BNA business units for the development and launch of internationally focused tax products.

MASSACHUSETTS TAX AUDITORS FOILED IN IDG RULING

Boston - A recent decision by the Massachusetts Appellate Tax Board related to inter-company pricing may put state tax auditors on notice not to overreach when assessing the value of services and products provided between companies and their out-of-state affiliates.

In their zeal for maximizing revenue, states are increasingly looking at inter-company pricing, so more of these cases may wind their way to state courts.

The case involved International Data Group, a company headquartered in Massachusetts that had affiliates in other states. IDG charged its affiliates for centralized services such as accounting and marketing. But the Massachusetts Department of Revenue decided that the amount the company charged its affiliates was not enough.

For tax years 1992-1994, the DOR imputed an additional $22 million in service value and assessed IDG millions in additional tax and interest.

The Massachusetts ATB ruled that the prices IDG charged its out-of-state affiliates were at arm's-length and proper.

The ATB ordered the DOR to abate the assessment related to the inter-company pricing issue.

ERNST & YOUNG PARTNERS CONVICTED OF TAX FRAUD

New York - Two current and two former Ernst & Young partners were found guilty of tax fraud and conspiracy charges related to tax shelters. The four men were charged in May 2007 with developing and marketing tax shelters for individuals making over $10 million a year. They had set up a group at E&Y in 1998 to develop the tax shelters.

A Manhattan jury found the four men guilty on all counts after a two-month trial. They included former tax partners Robert Coplan of Plano, Texas, and Brian Vaughn of Calhoun, La. The other two partners are on administrative leave: Martin Nissenbaum of Brooklyn, and Richard Shapiro of Rye Brook, N.Y.

Ernst & Young did not respond to a request for comment.

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