On October 16, 2023, the Council of Ministers in Italy approved a preliminary examination of the draft for a legislative decree concerning tax reforms on international taxation. This news was first reported by law firm McDermott Will & Emery. This proposed decree is particularly relevant to legal professionals working in multinational corporations and international law…
In a recent ruling, the Missouri Public Service Commission (MPSC) underscored the concept that a tax expense is a theoretical construct, calculated by multiplying the rate base by the rate of return and by the statutory tax rate. This decision was made in relation to an ongoing issue with a regulated public utility in Missouri…
On November 1, 2023, the Canada Revenue Agency (CRA) released a catalog of transactions that have been classified as the inaugural “notifiable transactions” under the recent Mandatory Disclosure Rules (MD Rules) in the Income Tax Act (Canada) (ITA). These rules were officially enacted on June 22, 2023. (JD Supra). The system of “notifiable transactions” is…
Recent memory serves to remind us all of the astronomical, record-setting $2.04 billion Powerball lottery win that took place a year ago today. Even more incredible is the fact that this was a close second to the breathtaking $1.765 billion jackpot claimed just last month in October 2023. With windfalls of this magnitude, one cannot…
In the context of corporate sales, Pillar Two could significantly impact tax risk apportionment. With the commencement of Pillar Two at the end of 2023, drafting a tax covenant when the Seller Group is within its scope is becoming a prevalent issue for legal professionals. Pillar Two represents a global initiative to ensure multinational enterprises…
The process of approving the U.S.-Chile bilateral income tax treaty (the Tax Treaty) continues in earnest. On October 25, the Chilean government submitted the reservations made by the United States Senate to the Chilean Congress for approval. Chilean tax practitioners anticipate the approval process of the Tax Treaty to conclude either this year or in…
On August 4, 2023, the Canadian Department of Finance issued a revised version of the proposed 2% equity buyback tax, colloquially known as the “Buyback Tax”. This taxation measure is intended to be applied to related transactions taking place on or after the beginning of 2024. As part of the government’s ongoing commitment to ensuring…
Often, individuals and corporations are perplexed by the complexities of tax audits, particularly those conducted by the Internal Revenue Service (IRS) and the state of California. A key aspect that often raises questions is the “statute of limitations”, the prescribed time within which the IRS or California must complete an audit of tax returns. The…
As 2024 approaches, sharp eyes are on the landscape of international cannabis reform. Born out of a blend of societal shifts, economic considerations, and evolving perspectives on health and welfare, many countries are moving towards more liberal cannabis policies. This, in turn, will influence international relations, trade, and legal considerations of multinational corporations and global…
Corporate functions such as entity management and matter management can present complex, time-consuming challenges. For those looking to modernize and automate these tasks, the options largely involve relying upon disjointed point solutions, which often translate to disparate systems that lack a unified approach. From this perspective, today’s launch of Traact, a SaaS platform developed by…
In recent years, legal and fiscal strategies employed in the realm of divestiture transactions have been a subject of deep analysis. Recently, a district court ruled on the legitimacy of employing dividend distribution prior to a share sale to potentially mitigate tax liabilities. This strategy manifests itself through the selling shareholders distributing dividends before the…
The ongoing income tax dispute PepsiCo Inc. v. Illinois Dept. of Revenue is shedding light on a state tax provision that encourages profit shifting by multi-jurisdictional taxpayers. This provision involves the exclusion of 80/20 companies from the combined filing requirements of nearly 15 states. An 80/20 company is a domestic corporation, subject to federal tax,…
The United Arab Emirates (UAE), historically known for being a tax-free country, has gained the attention of investors and entrepreneurs globally. Yet, in a notable policy shift geared towards sustainable economic development, the UAE rulers have introduced a Corporate Tax System. An important landmark in this transition is captured in the Federal Decree-Law No. 47/2022…
The Internal Revenue Service (IRS) has made an announcement on the retirement plan dollar limits and thresholds for 2024. The notice, Notice 2023-75, along with a subsequent news release, was issued on November 1, 2023. Though the contents of the initial report cannot be accessed in full at this time, an overview of the announcement…
In the latest cycle of legal updates regarding the United Kingdom’s tax policies, October 2023 has been a significant month, with a variety of impactful court decisions and legislative developments. The month was notably marked by the Supreme Court’s judgment on the operation of the employment-related securities deeming provision. This provision, typically used as part…
The Italian Council of Ministers, in a significant move, approved the initial drafts of two legislative decrees implementing the new “Italian Tax Reform” (Law No. 111/2023) in a preliminary examination conducted on October 16, 2023. This approval marks a noteworthy amendment in the landscape of international taxation, one of the aspects covered under these decrees….
In a pivotal meeting held by the Council of the European Union on October 17, 2023, the British Virgin Islands (BVI) has been removed from the EU’s list of non-cooperative jurisdictions for tax purposes (Annex I) – often termed as the “blacklist,” or more officially, the “EU List.” This decision serves to reverse the Council’s…
Given the looming expiry of the 2017 estate tax cuts at the end of 2025, it appears that wealthy American families are steering towards strategies that facilitate the relinquishment of wealth. As indicated by a report on JD Supra, families with a net worth of approximately $10 million or more are intensively collaborating with advisors…
In a judgment that would provide much-needed clarity for United States taxpayers living abroad, a court recently ruled that a taxpayer can offset their Foreign Tax Credits with their Net Investment Income Tax (NIIT) liability under a tax treaty. As many American expats might be well aware, uncertainty over this matter has been a prevalent…
On August 4, 2023, Luxembourg made a significant step in tax policy implementation as it published a bill of law, often referred to as the “EU Minimum Tax Directive” or “Pillar Two Directive”. This bill aims to apply a minimum global Effective Tax Rate (ETR) of 15% for both the global activities of large multinational…
As legal professionals, we are often tasked with understanding and interpreting some of the more arcane language employed in various statutes our corporations and firms handle. One such term of interest might be ‘Inure’, less frequently emergent in our day-to-day conversations, but with significant import within the realms of nonprofit law and taxation. ‘Inurement’ often…
The United States Treasury has recently delivered a significant proposal of tax reporting rules targeting the cryptocurrency industry, according to a report by Cadwalader, Wickersham & Taft LLP. The proposed regulations and the industry’s response to them underscore differing views on the future of digital asset management and taxation. Majority within the crypto community has…
In recent legislative updates impacting estate planning and taxation in Massachusetts, changes have been announced in the State’s estate tax protocols. Named the “2023 Massachusetts Tax Update,” it sets significant shifts for how estates will be taxed in the state. Applicable for decedents who die on or after January 1, 2023, Massachusetts will no longer…
Tax law is frequently perceived as a formidable discipline reserved only for accountants and those with a passion for organization and detail. This reputation, however, should not dissuade potential students. It can be argued that the popular apprehension towards tax law comes from a rather late introduction to the subject. Most law students only encounter…
Whether you’ve entertained the notion of an expatriate life due to a sense of wanderlust, or if it’s the realities of a global economy forcing your hand, renouncing United States (U.S.) citizenship, or terminating legal permanent resident (LPR) status, often becomes a viable option for some individuals. However, the process of expatriation and its implications…