UK government continues to support growth and build on economic recovery.On 19 March, UK Chancellor of the Exchequer, George Osborne, released the UK’s 2014 budget. From a business tax perspective, the budget contained few surprises, reflecting the government’s policy of consulting on significant tax changes in advance. The government continues to drive tax cuts to help businesses grow and to encourage global competitiveness, with corporation tax reducing to 21% from April 2014 and to 20% from April 2015. This will give the UK the joint lowest rate of corporate income tax in the G20 (the group of finance ministers and central bank governors from 20 major economies) by April 2015.Alongside this policy is a focus on fairness, with the government concentrating on reducing tax avoidance and evasion. The government has introduced 34 separate measures to address tax avoidance since 2010, and, although the rate of change is slowing, there are several provisions in the 2014 budget … [Read more...] about Tax Measures in the 2014 UK Budget
Measured at fair value through profit or loss
When a policyholder is forced to engage in several years of litigation over an insurer’s denial of property/casualty coverage, and ultimately prevails in proving the denial was erroneous, is it fair that the insurer is required to pay only what it owed in the first place? Should the insurer also be required to disgorge the true value of the money it kept during those years? Some states address this issue by imposing double-digit prejudgment interest rates on the insurer, thereby helping to reduce the insurer’s incentive to delay resolution of the claim. In other states, however, with relatively nominal prejudgment interest rates, the insurer is rewarded by delay.In considering this issue, it’s important to understand the true value of a property/casualty insurer’s “float.” Theoretically, nearly all the premiums an insurer collects in a given year from the many must eventually be used to pay the covered losses and liabilities of the unfortunate few. … [Read more...] about The True Value of Insurers’ Float
UK government supports businesses, focusing on the UK's competitiveness while clamping down on tax avoidance and evasion.On 20 March, UK Chancellor of the Exchequer George Osborne released the UK's 2013 budget. The budget reaffirmed the government's goal to make the UK a competitive place to locate multinational businesses, and it includes a number of measures designed to support businesses and encourage growth and jobs. There are also several measures to address the growing public concern with tax avoidance and tax evasion, designed to ensure that businesses pay their "fair share" of tax. The budget is stated to be tax neutral. There are a number of tax cuts being introduced; this is largely balanced with "spending consolidation".International CompetitivenessThe government has made it clear that it is trying to establish stability and promote growth in business and industry. The rate of corporation tax will reduce from 24% to 23% from 1 April 2013, with a further reduction to 21% … [Read more...] about Tax Measures in 2013 UK Budget
The demand for corporates and wealthy individuals to adopt greater tax transparency continues to build momentum – the significance of the global reaction to it makes the recent Autumn Statement seem like chicken feed. The reforms being formulated could have a dramatic impact upon tax strategies and corporate governance generally. Whilst it will no doubt present a headache for some C-suite executives, it may make the job of a pension plan trustee easier when assessing the value and strength of the sponsoring employer, particularly where that employer is part of an international group of companies.Recent developments in this area include:In November 2015 the G20 endorsed an OECD action plan to tackle BEPS (Base Erosion and Profit Shifting) by large multinationals. This is attempting to target an estimated loss to global tax revenues of US$100 to 240 billion annually. In addition to the G20, it has involved a group of 80 developing countries.On 12 April the European Commission … [Read more...] about Populism, profit-shifting and UK pensions
In the context of increasing cyber-attacks on major corporate organisations, small businesses and government, data protection and cybersecurity is a hot topic. Added to this, the GDPR—a strict new regulatory regime in Europe—will commence in May 2018 and has implications for both non-European and European-based organisations.Organisations which come within the scope of the GDPR, including organisations located outside of the EU, will be required to comply with more stringent data protection compliance obligations and face the prospect of exposure to multimillion-dollar fines and class actions if they breach these obligations. It is, therefore, crucial for non-EU established companies carrying out activities that fall within the GDPR to develop an understanding of their obligations under the GDPR, and take steps to ensure that they will be able to comply with their obligations when the GDPR starts to apply next year.This Memo provides an overview of the GDPR and … [Read more...] about EU’s New Data Protection Regulation – Are Your Cybersecurity and Data Protection Measures up to Scratch?