| |
Newsroom /
Finance
/
Finance
/
Benjamin Wey: Expert’s Views on SAIC and SEC Filing Discrepancies
Benjamin Wey: Expert’s Views on SAIC and SEC Filing Discrepancies
Benjamin Wey, the president of New York Global Group and the visiting professor of finance to many reputed universities worldwide, has shared his views on SAIC and SEC filing discrepancies for US- listed, China-based companies.
New York,
New York ,
United States of America
(prbd.net)
16/08/2011
An expert in US-China trade relations, Benjamin Wey shared his views to help understand SAIC and SEC filing discrepancies for U.S. listed China based companies. This understanding was especially useful for many investors interested in investing in US-listed, China-based companies who were concerned over discrepancies found in the financial statements between SAIC and their U.S. SEC filings. Such discrepancies made many investors wary of investing in these companies as they concluded that the underlying China operating entities must be fraudulent in inflating sales and earnings figures, and that their public SEC filings in the U.S. may not be reliable.
However, using his experience and expertise, Mr. Benjamin Wey stated that the matter would be highly concerning for investors if SAIC filings did match a public company's SEC filings. The reason being, China's State Administration for Industry and Commerce ("SAIC") has no authority in overseeing the financials of a business in China. In that sense, it would be erroneous to refer to SAIC filings as a Chinese company's ‘tax authority’ and make accompanying accusations regarding tax evasion or use them as a measure of judgment on a company's financial status.
A Chinese company only requires a "Certificate of Tax Completion" to satisfy a company's tax and annual financial filing requirements. In China, only State Administration of Taxation ("SAT") is an authorized Chinese government agency that receives annual financial reports of a business and can collect corporate taxes. All of the US-listed, China-based companies are under holding company structures that own multiple subsidiaries in China. Unlike the SEC, the SAT and SAIC do not require a holding company to file consolidated financial statements.
For a holding company that owns multiple subsidiaries or factories at different locations, every subsidiary has to file its own tax returns separately with a local tax bureau where the subsidiary is located. These returns are then consolidated into one financial statement. So, simply adding up the financials of each subsidiary does not equate to the financials filed by the holding company, represented as an entire organization through its SEC filings.
About Benjamin Wey:
Mr. Benjamin Wey is the President and founding partner of New York Global Group. NYGG is a leading Wall Street middle market advisory firm on China related transactions. With headquarters in both New York and Beijing, NYGG has more than 80 experienced and expert professionals. Benjamin Wey and his NYGG have been advising China based corporate clients with their strategic growth in the past 16 years.
Contact Address:
New York Global Group
The Trump Building
40 Wall Street
New York, NY 10005
USA
Tel: 212-566-0499
About
New York Global Group, Inc.
|