I'm reading the HDT thread, and just wanted to make a general comment on why big firms may not recommend that their clients use a certain type of structure such as HDTs. Reason: they are not experts at it. Now, obviously a big 4 firm has the resouces to find out everything about HDTs if they want to, so why wouldn't they? Profitability. Most big firm tax departments deal with large corporations. They're experts in transfer pricing, etc. This is profitable because that sort of work allows firms to charge out their juniors' hours at high rates. THAT's where a big firm's profits come from.
Many big firms do tax planning for individuals only as a result of doing work for their businesses. I don't think any of the big 4 have tax planning groups for middle class individuals. Their overheads are too high.
Most of the income from a HDT comes from selling the product itself, and at relatively low prices. Perhaps even more importantly, an accountant doing that doesn't NEED the resources of a big firm. You don't need an army of juniors to sell or administer HDTs.
So for a big 4 firm, selling HDTs just isn't profitable enough for them to bother.
In the same way, most financial planners do not recommend IPs.
Alex
Many big firms do tax planning for individuals only as a result of doing work for their businesses. I don't think any of the big 4 have tax planning groups for middle class individuals. Their overheads are too high.
Most of the income from a HDT comes from selling the product itself, and at relatively low prices. Perhaps even more importantly, an accountant doing that doesn't NEED the resources of a big firm. You don't need an army of juniors to sell or administer HDTs.
So for a big 4 firm, selling HDTs just isn't profitable enough for them to bother.
In the same way, most financial planners do not recommend IPs.
Alex