In many nations, provident funds play a critical role in ensuring the financial stability of individuals post-retirement. These government-administered retirement funds were primarily developed to act as a form of “social protection” in an attempt to fight poverty at the time of retirement. The idea was a response to many social programs at the time,…
In a recent development, the Internal Revenue Service (IRS) has published guidance regarding the taxation rules applicable to software development and research expenses. The movement hopes to clarify and streamline the proceedings in the backdrop of the Tax Cuts and Jobs Act of 2017 (TCJA) which largely altered the tax treatment of specified research and…
In an important move to ensure global minimal taxation, the German federal cabinet approved the government draft bill on August 16, 2023. This bill was drafted to implement Council Directive (EU) 2022/2523 – the Minimum Tax Directive Implementation Act (MinBestRL-UmsG), as reported by JD Supra. The approved bill primarily includes the draft of a new…
In a recent podcast titled International Tax Strategies and Forms, Janathan Allen delves into the complexities of US tax regulations for taxpayers with offshore interests. Similarly, the podcast also serves valuable insights for non-US residents or expatriates with ties to the US economy. Allen begins the podcast with an intriguing statement that highlights the general…
In a recent move, the Internal Revenue Service (IRS) imposed a moratorium on new Employee Retention Credit (ERC) claims processing. This decision, announced on September 14, 2023, follows a surge in questionable claim submissions that led to this temporary hiatus. IRS has pointed towards due diligence and detailed compliance reviews as the major factors causing…
In an unprecedented move, on July 21, 2023, Governor of New Jersey, Phil Murphy, signed into legal effect the Assembly Bill No. S3128/A4694, laying the ground for a robust tax treatment for non-residents working with New Jersey employers. A deep breath for New York residents as the new law might impact cross-state commuters and workers….
In a new development, the Internal Revenue Service (IRS) has announced a shift in its attention towards wealthy taxpayers as part of a long-term funding provision approved by Congress through the Inflation Reduction Act of 2022. The purpose of this move is to identify refined methods being used to evade taxes. In what has been…
The status of unity in New Jersey remains complex as the Division of Taxation experiences leadership changes and provides new legislative guidance. As professionals in the industry continue to grapple with these changes, it is imperative to remember the foundations of unity and contextualize the modifications to the unity statute. In light of recent developments,…
On August 9, 2023, New York State took a decisive step forward in the world of corporate tax law, with the Department of Taxation and Finance (the “Department”) formally proposing the Business Corporation Franchise Tax Regulations. This official proposal comes in accordance with the State Administrative Procedure Act (“SAPA”), and seeks to implement a comprehensive…
The Internal Revenue Service (IRS) has recently issued guidelines pertaining to the pharmaceutical excise tax, a tax that could impact certain drug manufacturers, producers, and importers if they fail to negotiate a drug-pricing agreement with the US Secretary of Health and Human Services. This guidance comes as part of ongoing efforts to regulate drug prices…
In the recent turn of events, the world is witnessing a bonanza of legislative activity in the United States Congress, with an array of healthcare-related congressional hearings scheduled. Last week alone, at least five significant healthcare hearings took place on Tuesday, with one more following on Wednesday, each focusing on contentious issues in the healthcare…
In the often complex world of law, a recent case study offers insightful lessons for legal professionals, particularly those involved in matters related to tax and estate planning. A recent opinion from the 3rd Circuit U.S. Court of Appeals reinforced the intricacies involved in deathbed gifts which can have far-reaching tax implications if not conducted…
The Missouri Department of Economic Development is looking to modify its Historic Tax Credit Regulations, a move which carries significant implications for both the legal sector and all stakeholders involved in rehabilitating historic structures in Missouri. The Missouri Historic Structures Rehabilitation Tax Credit Program, launched in 1998, offers eligible taxpayers a credit equivalent to twenty-five…
In a concerted effort to streamline corporate taxation, the European Commission has set its sights on harmonising Transfer Pricing (TP) across the European Union with the introduction of a new directive. Aimed at increasing tax certainty, reducing compliance costs, and mitigating the risk of double taxation and litigation, the TP Directive is poised to change…
Never has there been a more timely focus on the Irish Investment Limited Partnership vehicle (the “ILP”), but it seems the Irish Collective Asset-management Vehicle (the “ICAV”) continues to be the trusted choice of Irish Fund structures. As described by Cadwalader, Wickersham & Taft LLP, the ICAV can be described as the workhorse, or stallion…
On September 12, the Arizona Supreme Court refrained from reviewing a case labeled ADP, LLC v. Ariz. Dep’t of Revenue, No. CV-23-0036-PR. Although this decision may seem unremarkable at a glance, its implications for the software-as-a-service (SaaS) industry are profound. By allowing the Arizona Court of Appeals opinion in the same case to stand (254…
In a significant development, the United States Court of Appeals for the Second Circuit reinforced the Kirschner v. JP Morgan Chase Bank, N.A. ruling from 2020, stating that a $1.775 billion syndicated term loan granted to Millennium Laboratories LLC (Millennium) does not qualify as a security. This recent affirmation adopts a fact-specific analysis to arrive…
As the construction industry readies itself for another year of operational complexities, Arizona businesses are eyeing this year’s annual Construction Sales Tax Seminar with anticipation. Slated for October 26, from 9:00 am to 2:45 pm MST, the seminar will be delivered as a webinar, enabling participants from across the state and beyond to tap into…
Payment processors and decentralized finance (DeFi) platforms are set to face fresh regulations with the recent notice issued by the Department of the Treasury and the Internal Revenue Service (IRS). The proposed 282 page rulemaking notice discusses novel regulations for digital assets and broker reporting. The move comes nearly two years following the adoption of…
Internal Revenue Service (IRS) Commissioner, Danny Werfel, announced a coordinated enforcement strategy planned to involve audits of returns filed by 75 of the largest partnerships operating in the United States. This strategy was revealed on September 8, 2023. The enforcement strategy aims to augment the current efforts of the IRS to ensure compliance and transparency…
The Cannabis Regulatory Agency’s (CRA) Social Equity Program has been gaining prominence in light of its endeavors to promote participation in the burgeoning cannabis industry. This program specifically targets residents from communities that have felt the impacts of marijuana prohibition and enforcement the hardest, providing them with incentives and opportunities for reinvestment. In an effort…
Beginning January 1, 2024, a new opportunity is set to arise for beneficiaries of qualified tuition programs under Section 529 of the Internal Revenue Code (“529 accounts”), according to the latest provisions under the SECURE Act 2.0 (the “Act”). Under this forthcoming law, these beneficiaries will obtain the ability to rollover their funds from the…
In a significant legal move last month, Illinois upheld the charitable tax exemption for hospitals, marking a moment to remember for hospitals and legal professionals who work with non-profit organizations. The case, referred to as Carle Foundation v. Dept. of Revenue, played out in the Fourth District Court of Appeals, which sustained a previous court…
In a recent development, the New York State Department of Taxation & Finance, colloquially known as “the Tax Department”, published a private letter ruling concerning the conveyance of license agreements for parking spaces and storage spaces. In the context of a condominium unit’s conveyance, these transfers are considered a single conveyance of real property under…
Back in 2019, the New York State Legislature brought into action the Climate Leadership and Community Protection Act (CLCPA), a robust plan designed to measurably decrease greenhouse emissions throughout the state while also considerably increasing its renewable energy capacity. Outlined in the CLCPA is a mandate that, by 2030, up to 70% of the statewide…