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Boston Consulting Group (BCG) has appointed a new chief risk officer to oversee tougher internal controls and whistleblower procedures after the controversy over its work in Gaza. The consulting firm said Thursday that Amyn Merchant will succeed Adam Farber, who resigned in July following revelations that the firm helped set up the Gaza Humanitarian Foundation, whose launch was marred by the deaths of hundreds of Palestinians. In recent weeks, BCG has formalized guidelines on how it will work with humanitarian groups going forward and set some restrictions on work in active conflict zones. Leaders inside the firm said they are also working to reinforce its evaluation and approval processes for social-impact work.

 

Financial Times

Wall Street Journal

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KPMG has launched a new initiative called Global Business Services (GBS) with KPMG Velocity, built on the ServiceNow AI Platform, to enhance productivity across corporate functions such as finance, HR, procurement, and IT. The offering integrates artificial intelligence and human expertise through ServiceNow technology, aiming to create intelligent and resilient enterprises. KPMG’s own AI Trust services and expertise are integrated with ServiceNow’s platform to promote secure, scalable AI deployment. The partnership also focuses on advancing generative AI, upskilling KPMG professionals to better support client implementations.

 

International Accounting Bulletin

Economic anxiety is on the rise, with a recent Associated Press-NORC Center for Public Affairs Research poll revealing that 47% of Americans lack confidence in their ability to secure good jobs, up from 37% in October 2023. High costs for essentials like groceries, housing, and healthcare are major stressors, with 36% citing electricity bills as a significant concern. Linda Weavil, a Trump supporter, expressed her worries, stating: “I think he's doing a great job on a lot of things, but I'm afraid our coffee and chocolate prices have gone up because of tariffs.” Despite a low unemployment rate and stock market gains, 68% of U.S. adults describe the economy as “poor,” highlighting a disconnect between economic indicators and public sentiment. The survey indicates a growing sense of economic precarity, particularly among younger adults, with many feeling that middle-class stability is increasingly out of reach.

 

Los Angeles Times

PayPal is to take over a stake in German digital commerce company Shopware from a Carlyle Group fund, increasing its holdings in the firm from 11% to 41%. Carlyle Europe Technology Partners IV and PayPal invested $100m in Shopware in February 2022, citing the firm’s existing presence in Germany, a key e-commerce market, and the company’s ambitions to expand internationally.

 

Bloomberg

Kroger has announced plans to hire over 18,000 workers for the upcoming holiday shopping season, around 7,000 fewer than last year. The grocer said Monday that the hires will be focused on customer-facing roles such as cashiers, baggers, deli bakery clerks and pharmacy technicians. 

 

Reuters

Warner Bros Discovery said on Tuesday that it will launch a strategic review as chief executive David Zaslav seeks to fend off a potential takeover from billionaire David Ellison, fresh from his acquisition of Paramount. The comapny explained that it is considering a variety of deals, including a sale of the entire company or a spinoff of some assets, in response to interest from multiple potential buyers. Mr. Zaslav has told associates he would rather the company continue with his plan to split the media giant into two. Under the plan, its TV and movie studios and HBO Max streaming business would be held in one publicly traded company led by Mr. Zaslav, and its cable networks, including CNN and TNT, would go into another run by current chief financial officer Gunnar Wiedenfels. Raymond James analyst Ric Prentiss called it a “come one, come all” situation. Analysts have said that potential interested parties could include Amazon, Netflix, Apple and Comcast, all of which already have significant entertainment operations. 

 

Financial Times

New York Times

Reuters

Wall Street Journal

Coca-Cola has reported third-quarter revenue of $12.5bn, surpassing Wall Street's expectations of $12.39bn, driven by strong demand for its sodas and zero-sugar beverages. The company maintained its annual sales and profit targets, with shares rising about 1% in premarket trading. Excluding items, Coca-Cola earned 82 cents per share, exceeding estimates of 78 cents. Overall unit case volume rose 1%, driven by growth in Central Asia, North Africa, Brazil and the U.K.. Rival PepsiCo recently reported strong quarterly results, highlighting a trend towards growth in the beverage industry. In other Coca-Cola news, the company has begun introducing 12-ounce single-serve glass bottles of its classic soda made with U.S. cane sugar in select markets, after President Donald Trump publicly pushed the company to move away from using high-fructose corn syrup earlier this year. "It’s going to be a measured roll-out," commented chief financial officer John Murphy. "There is only a certain amount of cane sugar available in the United States.”

 

USA Today

Bloomberg

Reuters

Wall Street Journal

Adidas has lifted its annual profit target after strong demand for its retro trainers and a smaller than expected impact from U.S. tariffs boosted earnings. The sportswear group said third-quarter revenues increased by 12% in currency-neutral terms, and its operating profit increased to €736m ($835.38m), from €598m in the same period last year. The German firm now expects to report an operating profit of around €2bn in 2025, in line with analysts’ expectations and up from a previous company forecast of €1.7bn-€1.8bn. Currency-neutral revenues are anticipated to rise around 9%. “The improved profitability outlook reflects continued brand momentum, the better-than-expected business performance as well as the company’s successful efforts to partly mitigate the additional costs resulting from increased U.S. tariffs," the group added. Its full third-quarter results are scheduled to be released on October 29th.

 

Bloomberg

Financial Times

Reuters

Wall Street Journal

The alternative minimum tax (AMT) is making a comeback under the One Big Beautiful Bill Act, impacting many taxpayers and their advisors. Originally introduced in 1969 to address tax equity concerns, the AMT has evolved into a complex system that often affects middle-class households more than wealthy ones. Ben Henry-Moreland, a senior financial planning expert, noted that "the people who are going to need a lot of education are the people who are newer to wealth." The new rules will likely increase the number of taxpayers subject to the AMT, with millions expected to calculate their potential liability by 2026. The AMT's complexity requires careful planning, especially for those with specific income sources like private activity bonds. Garrett Watson, a senior policy analyst, stated: "You have to basically calculate taxes twice," highlighting the added burden for taxpayers.

 

Accounting Today

The cost of health insurance rose steeply for a third year in a row in 2025, reaching $26,993 for a family plan, according to an annual survey from the nonprofit KFF—a 6% annual increase. New weight loss drugs, higher hospital prices and a host of other factors such as tariffs are driving costs higher. Some of those same forces are being blamed for sharp price increases in Medicare coverage and individual policies next year. The KFF survey found that, across the country, workers on average are contributing $6,850 this year, about one quarter of the total $26,993 average premium, for family coverage, a similar share to 2024. Employers are paying the rest, an average of $20,143. The average annual premium for single coverage is $9,325, up 5% over last year.

 

The Minnesota Star Tribune

Wall Street Journal

House Democrats are calling for a watchdog investigation into the Trump administration's plans to use the IRS to target progressive groups. Reports indicate that Gary Shapley, an adviser to Treasury Secretary Scott Bessent, intends to replace Guy Ficco as head of the IRS Criminal Investigation unit to focus on organizations linked to billionaire Democratic donor George Soros. This move has sparked concerns over the politicization of the IRS, a traditionally nonpartisan agency. As the article notes, "the latest skirmish in the Capitol Hill debate" highlights ongoing tensions regarding the agency's role in political matters.

 

Bloomberg Tax

Small businesses are urging the U.S. Supreme Court to uphold lower court rulings that President Donald Trump's tariffs constitute an illegal tax on American companies. Learning Resources Inc. argues that Mr. Trump overstepped his authority by imposing tariffs under an emergency law not intended for such duties. The company stated, "By the government's own account, those actions amount to an over $3tn tax increase on Americans over the next decade." The court will assess whether Trump legally enacted the tariffs under the 1977 International Emergency Economic Powers Act (IEEPA). Despite a federal appeals court ruling against him, the tariffs remain in effect as the justices prepare to hear the case on Nov. 5. The appeal also includes tariffs imposed on Canada, Mexico, and China, with critics arguing that these actions contradict the founders' intentions regarding taxation powers.

 

Accounting Today

The European Commission has revised its tax cooperation agreement with Switzerland to enhance information sharing regarding digital currencies and to create a framework for cross-border value-added tax claim recovery. The updates also address data protection clauses in light of changes to both countries' data protection laws. According to the commission, these revisions were essential following updates to the Organization for Economic Cooperation and Development's Common Reporting Standard, which mandates that countries gather information from financial institutions and share it automatically with other nations.

 

Bloomberg Tax

Ruth Braunstein's book, My Tax Dollars: The Morality of Taxpaying in America, delves into the complex relationship Americans have with taxes. She notes: “We talk of taxpaying as though it is a badge of honor and also like it is a crime.” Ms. Braunstein, a sociologist, explores how taxation debates reflect broader societal values and the social contract. She identifies four moral logics surrounding taxpaying, emphasizing that Americans often view tax dollars as personal contributions with moral implications. This perspective leads to feelings of responsibility for government spending, which can provoke a “moral shock” when taxpayers feel complicit in undesirable outcomes. By focusing on the lived experiences of taxpayers, Ms. Braunstein provides a unique bottom-up view of tax culture, highlighting the importance of understanding how individuals perceive their role in the tax system. Her work underscores that tax debates are fundamentally about our collective obligations and the nature of citizenship.

 

Tax Notes