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 value to the true value
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
In Merion Capital L.P. v. Lender Processing Services, Inc., No. 9320-VCL (Del. Ch. Dec. 16, 2016), the petitioners, Merion Capital L.P. and Merion Capital II L.P. (together, “Merion” or “Petitioners”), issued a post-trial opinion in an appraisal proceeding arising from the acquisition by merger (the “Merger”) of Lender Processing Services, Inc. (the “Company” or “Respondent”) by Fidelity National Financial, Inc. (“Fidelity”). After a four-day trial, the Chancery Court concluded that the fair value of the Company’s stock at the effective time of the Merger was the merger price as a result of a properly conducted sale process.At the time of the Merger, the Company provided integrated technology products, data, and services to the mortgage lending industry, and was a market leader in mortgage processing in the United States. In 2008 the Company was spun off by Fidelity as a separate public company. Although the … [Read more...] about Chancery Court Determines Merger Price is Fair Value in Appraisal Proceeding as Result of Properly Conducted Sales Process
Ariosa was a decision that essentially held that the novel discovery of a naturally-occurring phenomenon could not per se meet the Mayo/Alice requirement for an inventive concept, even though it was of “groundbreaking importance” in advancing medicine. The claims appealed in Ariosa were not directed to specific diagnostic conclusions, so I continued to cling to the possibility that the Fed. Cir., faced with a simple “If A, then B” diagnostic claim, might rule differently. Of course, the holding in Cleveland Clinic erased that hope. The Fed. Cir. panel found that claims to diagnosing the presence of atherosclerotic cardiovascular disease (CAD) by measuring the blood level of an enzyme, myeloperoxidase (MPO) in a patient and comparing it to the level in a control subject diagnosed as not having the disease. The panel cited Arisoa as supporting its finding that this method “starts and ends with naturally occurring phenomena with no … [Read more...] about Cleveland Clinic v. True Health Diagnostics – Time to Redefine “Inventive Concept”?