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…
This week in weed news, we take note of the likely dissolution of two marijuana-related ballot initiatives in Wyoming. Originally slated for a vote by residents, circumstances have now cast a cloud of uncertainty over their fate. This is the latest in a series of setbacks for cannabis activism in Wyoming, a state with some…
In an era where remote work is becoming increasingly common, understanding the nuances of state tax rules is more critical than ever. One particular rule that has seen significant updates recently is the ‘Convenience of the Employer’ rule in New Jersey and Connecticut. The New Jersey Division of Taxation has updated its previous guidance on…
In a recent Tax Court opinion, the Hyatt Hotels Corporation faced the Commissioner of Internal Revenue over taxation issues surrounding guest reward programs. This decision offers vital insights for federal income taxpayers and clarifies a corporation’s tax responsibility for such reward funds. It specifically focuses on the conditions under which the taxpayer is considered a…
The New Jersey Division of Taxation has issued a new guidance that necessitates former BFC-1 filers to update the codes they use while submitting electronic payments. This change is aiming to align those codes with the corporations that file CBT-100. This information is pertinent as we seek to understand the developments in business tax law…
The tax landscape surrounding sales of alcoholic beverages in Texas is composed of a series of detailed and nuanced regulations. There are two primary forms of taxation that must be considered: Mixed Beverage Gross Receipts Tax and Mixed Beverage Sales Tax according to Freeman Law’s recent article at JD Supra. The Mixed Beverage Gross Receipts…
In what may represent a considerable shift in the fiscal landscape, Chicago Mayor Brandon Johnson has signaled his intent to increase transfer taxes on real estate transactions within the city. This proposal is being touted as a first-line strategy to enhance the city’s revenue stream without resorting to a rise in property taxes. Mayor Johnson…
Recently, major changes have been proposed in Italy regarding tax reform. The Council of Ministers, in an October 16 meeting, preliminarily approved two draft legislative decrees that are part of the Reform Proxy Law (Law No. 111/2023). The first legislative decree proposes a reform of personal income tax, along with other measures on income tax….
As we approach 2023, the world of estate and tax planning continues to evolve with countless updates, specifically affecting high-income taxpayers. Despite the Internal Revenue Service being on high alert for wealthy individuals, both new and existing planning opportunities are available. Notably, strategies such as tax-free gifts continue to persist. This is an advantageous planning…
Recently, proposed legislation on Opportunity Zones and Qualified Opportunity Funds, known as H.R. 5761, or the “Opportunity Zones Transparency, Extension and Improvement Act”, was introduced as bipartisan legislation in the US House of Representatives on September 27, 2023. This new initiative seeks to introduce noteworthy changes to the investment and taxation landscape within these zones….
Significant changes to the Massachusetts estate tax landscape came into effect on October 4, 2023 as Governor Maura Healey signed a tax relief package into law. This decision has important implications for legal professionals employed in the region’s business sector. Prior to the enactment of this new law, the Massachusetts estate tax exemption stood at…
In a recent development, software giant Microsoft reported in its Form 8-K filing with the U.S. Securities and Exchange Commission, that the Internal Revenue Service (IRS) is seeking additional payment of $28.9 billion along with penalties and interest for the tax years spanning 2004 to 2013. Microsoft’s transfer pricing strategies are under protest by the…