News
Sales Tax is on the SEC's Radar
HOUSTON– March 2, 2011 – The U.S. Securities and Exchange Commission (SEC) recently levied a $200,000 fine against a professional staffing and talent management firm for failing to maintain appropriate controls related to its sales tax obligations.
Hudson settled and paid the outstanding sales tax in early 2009. Hudson has neither admitted nor denied the findings of the SEC order, but agreed to pay a $200,000 penalty in conjunction with the settlement.
HOUSTON– March 2, 2011 – The U.S. Securities and Exchange Commission (SEC) recently levied a $200,000 fine against a professional staffing and talent management firm for failing to maintain appropriate controls related to its sales tax obligations.
The SEC order found that Hudson Highland Group, Inc. failed to maintain adequate documentation and internal accounting controls to accurately track, calculate and remit sales tax from 2003 to 2007. The accounting software used by Hudson was not capable of calculating their complex sales tax transactions.
Hudson settled and paid the outstanding sales tax in early 2009. Hudson has neither admitted nor denied the findings of the SEC order, but agreed to pay a $200,000 penalty in conjunction with the settlement.
Public companies need to be aware that the SEC has set a precedent regarding sales tax compliance. Click here to see the Administrative Proceeding (File no. 3-14182) for additional details.
