The document summarizes recent developments regarding whether investment receipts from short-term investments of a company's idle cash should be included in the sales factor for state corporate income tax apportionment purposes. It discusses court cases that have addressed this issue, with some ruling for the taxpayer and others ruling for the state. Current litigation in California and Arizona on this issue is highlighted.
Presenters:
• Chuck Miller, CEO, NgenX Energy
• Martin Harski, Cost Segregation Principal, National Tax Service Group, Withum
• Cary Milstein, Early Entrepreneur, Medical Cannabis Sector
USA: State & Local Tax Top Stories of 2015Alex Baulf
2015 was notable in large part due to a series of decisions issued by state and federal courts which could pave the way for future resolution of several gray areas in state and local taxation. For example, the U.S. Supreme Court issued several major decisions impacting state and local taxes, including Obergefell v. Hodges and Comptroller of the Treasury v. Wynne. In Obergefell, the Court held that same-sex couples had the right to marry. States that did not recognize same-sex marriage prior to the decision issued guidance on filing returns after Obergefell. In Wynne, the Court determined that the failure of Maryland law to allow a credit against county personal income tax for Maryland residents for their pass-through income from an S corporation’s out-of-state activities that was taxed by other states was unconstitutional.
State and local tax: Top stories of 2015Andrea Platt
2015 was a notable year for state and federal courts. A series of decisions was issued that could pave the way for future resolution of several gray areas in state and local taxation (SALT).
Check out the top SALT stories from 2015.
The Tax Cuts and Jobs Act has now passed, which enacts the biggest tax reform law in thirty years. Citrin Cooperman's Federal Tax Policy Team recently hosted a webinar discussing what you need to know to begin planning and steps you can be taking to be prepared. The conversation focused on the following key areas:
Business
Corporate
Pass-Through Entities
International
Individuals
State and Local Implications
2021 Year End Tax Planning for Law Firms and AttorneysWithum
2021 has ushered in a return to what we can consider our new normal for the foreseeable future. The impact of COVID-19 on law firms persists in the form of hybrid work environments as managing partners are tasked with creating return-to-work policies with flexible remote work options.
With remote work comes complicated nexus implications that law firms must navigate. Meanwhile, federal and state tax laws, particularly Pass-Through Entity Taxes (PTET), continue to impact law firms in a unique way.
Multi-state businesses face increasing financial burdens and a web of conflicting rules and complex tax issues - not only because of the sheer number of taxing jurisdictions, but also because state and local tax rules are not consistent from one jurisdiction to another. This complexity is further magnified for a multi-jurisdictional business involved in a merger/acquisition transaction ...
Presenters:
• Chuck Miller, CEO, NgenX Energy
• Martin Harski, Cost Segregation Principal, National Tax Service Group, Withum
• Cary Milstein, Early Entrepreneur, Medical Cannabis Sector
USA: State & Local Tax Top Stories of 2015Alex Baulf
2015 was notable in large part due to a series of decisions issued by state and federal courts which could pave the way for future resolution of several gray areas in state and local taxation. For example, the U.S. Supreme Court issued several major decisions impacting state and local taxes, including Obergefell v. Hodges and Comptroller of the Treasury v. Wynne. In Obergefell, the Court held that same-sex couples had the right to marry. States that did not recognize same-sex marriage prior to the decision issued guidance on filing returns after Obergefell. In Wynne, the Court determined that the failure of Maryland law to allow a credit against county personal income tax for Maryland residents for their pass-through income from an S corporation’s out-of-state activities that was taxed by other states was unconstitutional.
State and local tax: Top stories of 2015Andrea Platt
2015 was a notable year for state and federal courts. A series of decisions was issued that could pave the way for future resolution of several gray areas in state and local taxation (SALT).
Check out the top SALT stories from 2015.
The Tax Cuts and Jobs Act has now passed, which enacts the biggest tax reform law in thirty years. Citrin Cooperman's Federal Tax Policy Team recently hosted a webinar discussing what you need to know to begin planning and steps you can be taking to be prepared. The conversation focused on the following key areas:
Business
Corporate
Pass-Through Entities
International
Individuals
State and Local Implications
2021 Year End Tax Planning for Law Firms and AttorneysWithum
2021 has ushered in a return to what we can consider our new normal for the foreseeable future. The impact of COVID-19 on law firms persists in the form of hybrid work environments as managing partners are tasked with creating return-to-work policies with flexible remote work options.
With remote work comes complicated nexus implications that law firms must navigate. Meanwhile, federal and state tax laws, particularly Pass-Through Entity Taxes (PTET), continue to impact law firms in a unique way.
Multi-state businesses face increasing financial burdens and a web of conflicting rules and complex tax issues - not only because of the sheer number of taxing jurisdictions, but also because state and local tax rules are not consistent from one jurisdiction to another. This complexity is further magnified for a multi-jurisdictional business involved in a merger/acquisition transaction ...
On June 21st, the United States Supreme Court issued its long-awaited decision in South Dakota v. Wayfair, overturning the requirement that an out-of-state seller have physical presence in order for a state to require the seller to collect and remit state and local sales tax. Under Wayfair, substantial nexus exists if the taxpayer “avails itself of the substantial privilege of carrying on a business in that jurisdiction.”
State and Local Tax Nexus Issues and the Impact on Mergers and AcquisitionsSkoda Minotti
Would you sell a home before making it attractive enough to turn a profit? Selling a business is no different. Before you plan to sell, there are essential tax implications you should understand and steps you should take to ensure smooth sailing for a successful transaction
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Memorandum Of Association Constitution of Company.pptseri bangash
www.seribangash.com
A Memorandum of Association (MOA) is a legal document that outlines the fundamental principles and objectives upon which a company operates. It serves as the company's charter or constitution and defines the scope of its activities. Here's a detailed note on the MOA:
Contents of Memorandum of Association:
Name Clause: This clause states the name of the company, which should end with words like "Limited" or "Ltd." for a public limited company and "Private Limited" or "Pvt. Ltd." for a private limited company.
https://seribangash.com/article-of-association-is-legal-doc-of-company/
Registered Office Clause: It specifies the location where the company's registered office is situated. This office is where all official communications and notices are sent.
Objective Clause: This clause delineates the main objectives for which the company is formed. It's important to define these objectives clearly, as the company cannot undertake activities beyond those mentioned in this clause.
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Liability Clause: It outlines the extent of liability of the company's members. In the case of companies limited by shares, the liability of members is limited to the amount unpaid on their shares. For companies limited by guarantee, members' liability is limited to the amount they undertake to contribute if the company is wound up.
https://seribangash.com/promotors-is-person-conceived-formation-company/
Capital Clause: This clause specifies the authorized capital of the company, i.e., the maximum amount of share capital the company is authorized to issue. It also mentions the division of this capital into shares and their respective nominal value.
Association Clause: It simply states that the subscribers wish to form a company and agree to become members of it, in accordance with the terms of the MOA.
Importance of Memorandum of Association:
Legal Requirement: The MOA is a legal requirement for the formation of a company. It must be filed with the Registrar of Companies during the incorporation process.
Constitutional Document: It serves as the company's constitutional document, defining its scope, powers, and limitations.
Protection of Members: It protects the interests of the company's members by clearly defining the objectives and limiting their liability.
External Communication: It provides clarity to external parties, such as investors, creditors, and regulatory authorities, regarding the company's objectives and powers.
https://seribangash.com/difference-public-and-private-company-law/
Binding Authority: The company and its members are bound by the provisions of the MOA. Any action taken beyond its scope may be considered ultra vires (beyond the powers) of the company and therefore void.
Amendment of MOA:
While the MOA lays down the company's fundamental principles, it is not entirely immutable. It can be amended, but only under specific circumstances and in compliance with legal procedures. Amendments typically require shareholder
Tata Group Dials Taiwan for Its Chipmaking Ambition in Gujarat’s DholeraAvirahi City Dholera
The Tata Group, a titan of Indian industry, is making waves with its advanced talks with Taiwanese chipmakers Powerchip Semiconductor Manufacturing Corporation (PSMC) and UMC Group. The goal? Establishing a cutting-edge semiconductor fabrication unit (fab) in Dholera, Gujarat. This isn’t just any project; it’s a potential game changer for India’s chipmaking aspirations and a boon for investors seeking promising residential projects in dholera sir.
Visit : https://www.avirahi.com/blog/tata-group-dials-taiwan-for-its-chipmaking-ambition-in-gujarats-dholera/
LA HUG - Video Testimonials with Chynna Morgan - June 2024Lital Barkan
Have you ever heard that user-generated content or video testimonials can take your brand to the next level? We will explore how you can effectively use video testimonials to leverage and boost your sales, content strategy, and increase your CRM data.🤯
We will dig deeper into:
1. How to capture video testimonials that convert from your audience 🎥
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3. How you can capture more CRM data to understand your audience better through video testimonials. 📊
Unveiling the Secrets How Does Generative AI Work.pdfSam H
At its core, generative artificial intelligence relies on the concept of generative models, which serve as engines that churn out entirely new data resembling their training data. It is like a sculptor who has studied so many forms found in nature and then uses this knowledge to create sculptures from his imagination that have never been seen before anywhere else. If taken to cyberspace, gans work almost the same way.
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
Enterprise Excellence is Inclusive Excellence.pdfKaiNexus
Enterprise excellence and inclusive excellence are closely linked, and real-world challenges have shown that both are essential to the success of any organization. To achieve enterprise excellence, organizations must focus on improving their operations and processes while creating an inclusive environment that engages everyone. In this interactive session, the facilitator will highlight commonly established business practices and how they limit our ability to engage everyone every day. More importantly, though, participants will likely gain increased awareness of what we can do differently to maximize enterprise excellence through deliberate inclusion.
What is Enterprise Excellence?
Enterprise Excellence is a holistic approach that's aimed at achieving world-class performance across all aspects of the organization.
What might I learn?
A way to engage all in creating Inclusive Excellence. Lessons from the US military and their parallels to the story of Harry Potter. How belt systems and CI teams can destroy inclusive practices. How leadership language invites people to the party. There are three things leaders can do to engage everyone every day: maximizing psychological safety to create environments where folks learn, contribute, and challenge the status quo.
Who might benefit? Anyone and everyone leading folks from the shop floor to top floor.
Dr. William Harvey is a seasoned Operations Leader with extensive experience in chemical processing, manufacturing, and operations management. At Michelman, he currently oversees multiple sites, leading teams in strategic planning and coaching/practicing continuous improvement. William is set to start his eighth year of teaching at the University of Cincinnati where he teaches marketing, finance, and management. William holds various certifications in change management, quality, leadership, operational excellence, team building, and DiSC, among others.
Cracking the Workplace Discipline Code Main.pptxWorkforce Group
Cultivating and maintaining discipline within teams is a critical differentiator for successful organisations.
Forward-thinking leaders and business managers understand the impact that discipline has on organisational success. A disciplined workforce operates with clarity, focus, and a shared understanding of expectations, ultimately driving better results, optimising productivity, and facilitating seamless collaboration.
Although discipline is not a one-size-fits-all approach, it can help create a work environment that encourages personal growth and accountability rather than solely relying on punitive measures.
In this deck, you will learn the significance of workplace discipline for organisational success. You’ll also learn
• Four (4) workplace discipline methods you should consider
• The best and most practical approach to implementing workplace discipline.
• Three (3) key tips to maintain a disciplined workplace.
3.0 Project 2_ Developing My Brand Identity Kit.pptxtanyjahb
A personal brand exploration presentation summarizes an individual's unique qualities and goals, covering strengths, values, passions, and target audience. It helps individuals understand what makes them stand out, their desired image, and how they aim to achieve it.
[Note: This is a partial preview. To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations]
Sustainability has become an increasingly critical topic as the world recognizes the need to protect our planet and its resources for future generations. Sustainability means meeting our current needs without compromising the ability of future generations to meet theirs. It involves long-term planning and consideration of the consequences of our actions. The goal is to create strategies that ensure the long-term viability of People, Planet, and Profit.
Leading companies such as Nike, Toyota, and Siemens are prioritizing sustainable innovation in their business models, setting an example for others to follow. In this Sustainability training presentation, you will learn key concepts, principles, and practices of sustainability applicable across industries. This training aims to create awareness and educate employees, senior executives, consultants, and other key stakeholders, including investors, policymakers, and supply chain partners, on the importance and implementation of sustainability.
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1. Introduction and Key Concepts of Sustainability
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To download the complete presentation, visit: https://www.oeconsulting.com.sg/training-presentations
Improving profitability for small businessBen Wann
In this comprehensive presentation, we will explore strategies and practical tips for enhancing profitability in small businesses. Tailored to meet the unique challenges faced by small enterprises, this session covers various aspects that directly impact the bottom line. Attendees will learn how to optimize operational efficiency, manage expenses, and increase revenue through innovative marketing and customer engagement techniques.
"𝑩𝑬𝑮𝑼𝑵 𝑾𝑰𝑻𝑯 𝑻𝑱 𝑰𝑺 𝑯𝑨𝑳𝑭 𝑫𝑶𝑵𝑬"
𝐓𝐉 𝐂𝐨𝐦𝐬 (𝐓𝐉 𝐂𝐨𝐦𝐦𝐮𝐧𝐢𝐜𝐚𝐭𝐢𝐨𝐧𝐬) is a professional event agency that includes experts in the event-organizing market in Vietnam, Korea, and ASEAN countries. We provide unlimited types of events from Music concerts, Fan meetings, and Culture festivals to Corporate events, Internal company events, Golf tournaments, MICE events, and Exhibitions.
𝐓𝐉 𝐂𝐨𝐦𝐬 provides unlimited package services including such as Event organizing, Event planning, Event production, Manpower, PR marketing, Design 2D/3D, VIP protocols, Interpreter agency, etc.
Sports events - Golf competitions/billiards competitions/company sports events: dynamic and challenging
⭐ 𝐅𝐞𝐚𝐭𝐮𝐫𝐞𝐝 𝐩𝐫𝐨𝐣𝐞𝐜𝐭𝐬:
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"𝐄𝐯𝐞𝐫𝐲 𝐞𝐯𝐞𝐧𝐭 𝐢𝐬 𝐚 𝐬𝐭𝐨𝐫𝐲, 𝐚 𝐬𝐩𝐞𝐜𝐢𝐚𝐥 𝐣𝐨𝐮𝐫𝐧𝐞𝐲. 𝐖𝐞 𝐚𝐥𝐰𝐚𝐲𝐬 𝐛𝐞𝐥𝐢𝐞𝐯𝐞 𝐭𝐡𝐚𝐭 𝐬𝐡𝐨𝐫𝐭𝐥𝐲 𝐲𝐨𝐮 𝐰𝐢𝐥𝐥 𝐛𝐞 𝐚 𝐩𝐚𝐫𝐭 𝐨𝐟 𝐨𝐮𝐫 𝐬𝐭𝐨𝐫𝐢𝐞𝐬."
The world of search engine optimization (SEO) is buzzing with discussions after Google confirmed that around 2,500 leaked internal documents related to its Search feature are indeed authentic. The revelation has sparked significant concerns within the SEO community. The leaked documents were initially reported by SEO experts Rand Fishkin and Mike King, igniting widespread analysis and discourse. For More Info:- https://news.arihantwebtech.com/search-disrupted-googles-leaked-documents-rock-the-seo-world/
Search Disrupted Google’s Leaked Documents Rock the SEO World.pdf
ABA Winter 2005 presentation v1
1. Current Developments in Income
Tax Reporting By Affiliates
David A. Fruchtman, Moderator
Winston & Strawn LLP
Michael G. Galloway William H. Weissman
Bancroft, Susa & Galloway Morrison & Foerster LLP
American Bar Association Tax Section Winter 2005 Meeting
January 21, 2005
2. Example: Aaron Rents, Inc. v. Collins,
Fulton County Superior Court, Civil
Action No. D-96025, June 27, 1994,
CCH Georgia State Tax Reporter at par.
200-242
Rents
Transfers License
Trademarks Agreement
Investment
3. Example: Aaron Rents, Inc. v. Collins,
Fulton County Superior Court, Civil
Action No. D-96025, June 27, 1994,
CCH Georgia State Tax Reporter at par.
200-242
Rents
$2.5
$1.3 Million
Million
Royalty Interest
$1.3 Million Note Royalty
$2.5 Million Note Payment on
November 20, Payment
August 31, 1989 November 14, Notes
1989 August 29,
1989
1989
Investment
Delaware
4. MTC combined reporting model statute
• MTC Executive Committee approved draft model
combined reporting statute, dated November 11, 2004
• MTC holding public hearings in February and March
• Will issue a report in April
• Expect model statute to be before the full MTC for
adoption at annual meeting in July
• Will take written public comments until April 1, 2005
5. Structure of model statute
• Section 1: Definitions
• Section 2: When combined reporting required and when
discretionary
• Section 3: Determination of taxable income or loss using
a combined report
• Section 4: Designation of a surety
• Section 5: Water’s-edge election
6. Section 1: Definitions
• “Corporation”
– Business conducted by a partnership which is directly or
indirectly held by a corporation shall be considered the business
of the corporation to the extent of the corporation’s distributive
share of the partnership income
• “Unitary business”
– Definition is intended to be a summary of the MTC’s model
unitary business definition found in MTC Reg.IV.1.(b)
– Not intended to limit, narrow or otherwise change the common
law definitions or tests for a unitary enterprise
7. Section 2: When combined reporting is used
• General rule: Mandatory for all unitary businesses
• Discretionary rule: The Director may promulgate
regulations that require combined reporting for entities
other than corporations in order “to reflect proper
apportionment of income” to the entire unitary business
• Tax avoidance rule: If the Director determines that the
income or loss of a taxpayer engaged in a unitary
business with a non-corporate entity represents tax
avoidance or evasion, the Director may, on a case-by-
case basis, require a combined report with such entity
– Cannot be used “to reflect proper apportionment of income”
– Common law standards of tax avoidance and evasion apply
8. Section 3: Determining income
• Each taxpayer responsible for its own tax
– The Joyce rule applies, not Finnigan
– Credits and NOLs cannot be used by the unitary group
• Components of income to each taxpayer
– (1) Apportioned share of unitary business income; (2) other
distinct business income apportioned to taxpayer; (3) all income
from a business conducted wholly intrastate; (4) all income
sourced to the state on sale of exchange of capital assets and
involuntary conversions; (5) all nonbusiness income allocated to
the state; (6) income or loss allocated to an earlier year required
to be taken into account as state source income in the tax year;
and (7) NOLs
9. Section 3: Determining income
• Unitary business income is the total income of all
members of the combined group separately calculated
• Intercompany transactions deferred
• Intercompany dividends paid out of E&P are eliminated
• Charitable expenses limited to amount of business
income and excess is nonbusiness expense
• For each class of gain or loss, all gains or losses for
each class are combined and apportioned based on
member’s apportionment percentage and then netted
against nonbusiness gain or loss for that class
10. Section 4: Designation of a surety
• Allows for a single taxpayer to file a single return and pay
tax of all taxpaying members of the combined group
– Allowed as an administrative convenience
– If surety fails to perform, tax would be assessed to each member
accordingly
– Does not create joint and several liability
11. Section 5: Water’s-edge election
• World-wide combined reporting is default rule
• Water’s-edge election allowed
• Once made election is binding for all years thereafter
– The Director may allow termination for “reasonable cause based
on extraordinary hardship due to unforeseen changes in state tax
statutes, laws, or policy, and only with the written permission of
the Director.”
– Appears to be intended to mirror Treas. Reg. § 1.1502-75(c) but
seems more limited
12. Combined reporting v. separate entity
(or separate return) reporting
• Combined reporting based on the unitary concept
• For separate entity states, combined reporting can
capture transactions between affiliated entities
• Problems with combined reporting
– Inherently neutral, but . . .
– Likely will increase a taxpayer’s liability
– Complicated
– Simply shifts what taxpayers focus on: minimizing factors rather
than income in the taxing state
13. Various state proposals in 2004
• The Vermont legislation (Passed)
• The Arkansas legislation (Did not pass)
• The Maryland legislation (Did not pass)
• More to come?
– The MTC model statute will not slow the movement
– What ever happened to elective combination?
14. Gross receipts litigation: an overview
• The Treasury function and normal cash management
– Investing idle cash not used in daily operations
– Usually investing in short-term marketable securities like T-Bills,
CDs, REPOs, etc.
• Because cash is needed for operations, investments must be highly
liquid and low risk
– Activity occurs nearly daily
– Usually a specific operation in bigger companies
15. How does this activity affect the
apportionment factor?
• In the states where the treasury function does not occur:
– The sales factor denominator increases without changing the
sales factor numerator
– Reduces the taxpayer’s liability in the state
• Should the principal portion of the investment receipts be
included in the sales factor?
16. The states’ responses: two arguments
• The principle portion of investment receipts do not
constitute either “gross receipts” or “sales” for purposes
of the apportionment formula
– The investments are only loans
– The returns of principal do not constitute a “receipt”
• Even if the proceeds are gross receipts, they distort the
amount of the taxpayer’s business activities in the state
as measured by the standard apportionment formula
– The distortion justifies an alternative apportionment formula,
which usually means including only the income from the
investments (e.g., the interest component only)
17. The early cases
• The California SBE Cases
• AT&T v. Director, Div. of Tax., 476 A.2d 800 (N. J.
Super. Ct. App. Div. 1984) (Taxpayer lost)
• Sherwin-Williams Co. v. Ind. Dep’t of Rev., 673 N.E.2d
849 (Ind. Tax Ct. 1996) (Taxpayer lost)
• Sherwin-Williams Co. v. Johnson, 989 S.W.2d 710
(Tenn. Ct. App. 1998) (Taxpayer lost)
• Sherwin-Williams v. Ore. Dep’t of Rev., 996 P.2d 500
(Ore. Ct. App. 2000) (Taxpayer won)
18. The current litigation
• General Motors Corp. v. Franchise Tax Board, 120
Cal.App.4th 114 (Ct. App. 2004), modified on other
grounds, 120 Cal.App.4th 881 (Ct. App. 2004) (review
granted Oct. 13, 2004) (currently depublished) (Taxpayer
lost)
• Microsoft v. Franchise Tax Board, No. 400444 (Cal. Sup.
Ct., SF County, 2003) (on appeal) (Taxpayer won)
• Walgreen Arizona Drug Co. v. Ariz. Dep’t of Rev., 97
P.3d 896 (Ct. App. 2004) (Taxpayer lost) (petition for
review filed Nov. 23, 2004)
19. GM and Walgreen
• Same issue: do short-term investments of a company’s
idle cash generate “gross receipts” for apportionment
purposes?
– Walgreen relied on General Motors
– Will the Arizona Supreme Court care how the California
Supreme Court rules on the issue?
20. Microsoft
• Only taxpayer to recently win on the question of
distortion
– FTB failed to meet its burden of proof
• Raises additional questions:
– What constitutes statutory distortion?
– How should it be measured?
– How should a taxpayer’s business activities be defined?