Posted by & filed under Accounting Information Systems, Accounting Principles, Advanced Accounting, Auditing, Cost Accounting, Ethical Dilemma, Financial Accounting, Fraud Accounting, Intermediate Accounting, Managerial Accounting.

According to Newsweek, David Danon, a former Vanguard tax lawyer, became a whistleblower two years ago when he filed formal complaints with the Internal Revenue Service and many state taxing agencies claiming that Vanguard’s low fees are an illegal tax dodge.

Questions:

1. According to a 2006 law, how much could Danon stand to collect as a whistleblower in this case?
2. According to the article, what do Vanguard customers stand to lose?
3. Discuss the reasons why Vanguard charged such a low fee, why this case is so unusual in terms of whistleblowing, and how the case issues might be resolved.

Source:

Johnston, David Cay (2015) Vanguard Whistleblower Could Get Billions in Tax Dodge Complaint. Newsweek, Dec. 3 (Retrievable Online at http://www.newsweek.com/vanguard-whistleblower-tax-dodge-complaint-400901)

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