Tax

G8 Pushes for International Ownership Registry to Curb Shell Companies, But Will Tightening Controls Increase Tax Revenues?

They say that the only two certain things in life are death and taxes.  But with shrewd corporate structuring, many multinational firms and high net worth individuals have been able to reduce or eliminate their tax bills by shifting the incidence of earnings to overseas subsidiaries where tax rates on profits are low or even […]

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FATCA and Forced Transparency: The Latest Global Oxymoron

On January 17, 2013, the U.S. Department of Treasury and the Internal Revenue Service released the final regulations of FATCA, the whirlwind of a law first enacted in March 2010.  Since the enactment, the Treasury and the IRS have issued a series of rounds of preliminary guidance as to the details behind the regulations.  The release […]

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The Tax Burden on Small and Emerging Businesses: More than Dollars

Nobody likes paying taxes.  It is a financial burden on individuals as well as companies. Our policymakers often don’t realize (or choose to ignore), however, that among the biggest burdens associated with taxes isn’t even the tax bill (the dollars to be paid) – it is the heavy administrative toll relating to tax analysis, planning […]

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“Best-Looking GDP Drop Ever” Overshadowed by Approaching Sequester Fiasco in Washington

On Wednesday, Jan. 30th, U.S. markets were greeted by the report of a surprise drop in GDP to end the 4th quarter of 2012.  One might have expected this to be a harbinger of doom–the start of a dive back into the depths of recession we thought we had just escaped–considering that unemployment continues to […]

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California’s Proposition 39: The Start of A California Comeback?

On November 7th, California passed Proposition 39, a controversial change to California’s corporate tax code. Since 2009, corporations have been offered a choice between two formulas. Formula A based corporate tax on a corporation’s sales, in-state property, and employees, while formula B was based solely upon in-state corporate sales. Initially, the choice-of-formula system benefitted the […]

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Ahead of Scheduled Investment Tax Hikes in 2013, US Investors Deserve Guidance

Early the morning of November 7th, as he delivered his victory speech to supporters in Chicago, Barack Obama was met with jubilant applause, as he promised “the best is yet to come” for America. By mid-day, however, the party was over: US stock markets declined sharply, with the S&P 500 Index closing the day down […]

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How Procrastination and Partisan Bickering Has Brilliantly Set Up Congress to Balance the United States’ Budget

After months of procrastination and delay over dealing with the federal deficit and debt ceiling, judgment day is almost upon us. Since 2008, Congress and the President have run up a notoriously high tab dealing with the global recession. The costly measures include, among others, the extension of the ‘Bush’ Tax Cuts (The Jobs and […]

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(Not Really) Buffeting the Buffet Rule Part II

Back in early October, I wrote about how President Obama unveiled a new piece of legislation known as the “Buffet Rule.” It went away for a bit, and now it’s back, kind of. A procedural vote took place in the Senate Monday evening, but there were not enough votes to end the filibuster. It is […]

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The Tiger Loses Its Stripes? India’s Proposed Retroactive Tax on Offshore Takeovers May Diminish Its Aura As an Attractive Destination for Foreign Investors

On March 16, 2012, Pranab Mukherjee, the Indian Finance minister, proposed a retroactive amendment to India’s tax laws[1], which would allow the Indian government to impose a capital gains tax on the indirect sale of Indian assets among non-Indian entities. The proposed retroactive tax is an effort to shore up India’s fiscal budgetary woes and would allow the government to tax “offshore” transactions dating back to 1962.[2] Unsettlingly, the proposal is also a direct rebuke of the Supreme Court of India’s judgment issued in Vodafone International Holdings B.V. v. Union of India & Anr., holding that the Indian taxing authority did not have the power to tax the sale of a holding company incorporated outside of India […]

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POSTED IN Comparative Law, Corporate Law, Mergers & Acquisitions, Tax

A Bridge to Somewhere: The New Tappan Zee Bridge Makes a Case Against Public-Private Partnerships

According to Bloomberg, New York Governor Andrew Cuomo is “seeking legislation that would allow private-equity firms to help finance construction of public-works projects, including a new $5.2 billion Tappan Zee Bridge.” The legislation would permit the state to lease – but not sell – state assets. The state has applied for a $2b federal loan […]

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POSTED IN Private Investment Funds, Tax

- Fordham Corporate Center