That, in itself, would provide some tax savings for GI because the New York tax rates were higher than those GI faced in any other tax jurisdiction. Alternative 3—Davis’ first proposal Jack Davis, the corporate Operations VP, rejected Hoskins’ method. He argued that to a large extent the subsidiaries were just following instructions from headquarters. And, further, many of the funds the subsidiaries were managing belonged to New York clients. He proposed instead to allocate revenues based on…
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