South Korea’s Joongang Ilbo, citing “a source familiar” with China-North Korea relations, reported Wednesday that dictator Kim Jong-un requested Chinese economic investment in his country during his most recent summit with counterpart Xi Jinping. The report is the latest in a string that appears to show concerted efforts by North Korean leaders to persuade foreign powers to pay for the reconstruction of their country, ravaged by over 60 years of strict communist leadership.While China is run by the Communist Party, it allows foreign investment that benefits the regime, strictly regulating it to ensure that there is no free market, which could result in unintended beneficiaries Beijing cannot control. According to North Korea’s state-run news agencies, Kim Jong-un told the leadership of his Workers’ Party in April that Pyongyang would shift its focus away from the development of nuclear weapons and “concentrate all efforts of the whole party and … [Read more...] about Report: Kim Jong-Un Urging China to Invest in Special ‘Economic Zones’
Special purpose zone definition
In response to the August 2016 flooding event, there have been several articles about the Federal Emergency Management Agency ("FEMA") regulations, the National Flood Insurance Program ("NFIP"), the base flood elevation requirements relating to a building damaged by flooding, and local government rebuilding requirements. This e-lert will explain these programs and compliance requirements and the recent developments on the national and local levels, as FEMA and local governments in Louisiana respond to the August 2016 flood event.A building (home) that has experienced flooding is in very GENERAL TERMS in one of three major categories:1 It is: either outside the FEMA Flood Zone ("Situation 1") and subject only to local governmental rebuilding requirements as well as insurance provision should the owner have flood insurance; orinside the FEMA Flood Zone but with the cost or repairs being LESS than 50 percent of the market value of the building (the "Substantial Damage Rule"), in … [Read more...] about The FEMA Flood Zone Conundrum—What’s It All About?
Today, Louisiana Governor Edwards called for a special session of the Louisiana Legislature to begin on February 14, 2016 and end no later than March 9, 2016. The session has been called to address the current year $700 million budget deficit and a number of tax issues, including:Amend the Constitution “relative to deductible items in computing state income taxes” (expected to be the federal income tax deduction);Adjust the rates and brackets for state income tax;Increase the excise tax on cigarettes levied under R.S. 47:841(B);Address the deduction for net operating loss, the computation of Louisiana net income, and the apportionment percent under the Louisiana corporation income tax;Address the tax credit for investing in certain Louisiana-based investments by insurance companies;Impose an additional state tax on the sale, use, lease or rental of tangible personal property and the sale of specifically enumerated … [Read more...] about Special Legislative Session Called by Louisiana Governor To Address Taxes and Budget
The U.S. Model Income Tax Treaty (the U.S. Model Treaty) generally represents the United States’ opening position in treaty negotiations. As a result, when changes to the treaty are proposed, international tax practitioners should be aware of the potential impact those changes can have on their existing inbound U.S. structures. On May 20, 2015, the Treasury Department released five proposed amendments (Proposals) to the U.S. Model Treaty, which if adopted in their current form will undoubtedly have a major impact on many existing structures. The proposals are intended to ameliorate the problem of so-called “stateless income” as well as influence the OECD’s work on the “Base Erosion and Profit Shifting” (BEPS) initiative.Anti-Triangular ProvisionOne of the proposals, which already is included in the Limitation on Benefits (LOB) article of many of the recently enacted income tax treaties, would amend paragraph 7 of Article 1 to … [Read more...] about Proposed U.S. Model Treaty Provisions May Dramatically Alter International Tax Landscape
California has completely overhauled its tax-related economic incentive laws by repealing nearly all existing incentives, and replacing them with a new sales tax benefit and limited income tax incentives, primarily for the manufacturing sector and for certain other businesses located in enterprise zones and other high-unemployment or high-poverty areas. In addition, the Governor’s office will have discretion to grant additional tax credits to other businesses; however, several of these new incentive provisions will require additional clarification.Over the past 20 or so years, the legislature and various governors enacted many tax incentives designed to stimulate employment or business growth in certain economically disadvantaged areas of the state, each of which was subject to numerous limitations, special definitions and exceptions.1 These include:an income tax credit for sales and use tax paid on purchases of certain types of machinery and equipment used … [Read more...] about California Business Tax Incentive Legislation