Monthly Archives: October 2016

Charitable giving in Wills: charity must be governed by UK law to secure IHT exemption

 

The UK Inheritance Tax (IHT) saving is probably the last reason why anyone would deliberately choose to leave assets to charity in their Will.  However, it is the case that leaving assets to charity is very IHT efficient, for two key reasons.  Qualifying gifts are 100% IHT exempt – the charity will not have any IHT deducted from what is left to them.  In addition, from April 2012, the estate of anyone leaving at least 10% of their net estate to charity benefits from a reduced IHT rate of 36%.  The recent Court of Appeal case of Routier & Anor v HMRC ([2016] EWCA Civ 938) is a reminder, though, that, where the Will contains a foreign element, it is dangerous to assume that the IHT charity exemption will be automatic.

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New tax incentives for early stage investors

New tax incentives for early stage investors (sometimes referred to as ‘angel investors’) have come into effect from 1 July 2016. The measures are contained in Division 360 of the Income Tax Assessment Act 1997 (ITAA) and provide a tax offset that operates as a credit against other tax payable by the investor and some CGT concessions

To qualify for the incentives, investors must subscribe for new shares in a company that meets the requirements of an ‘Early Stage Investor Company’ (ESIC) immediately after the shares are issued. The shares must be issued on or after 1 July 2016.

The new concessions link to the Government’s policy of encouraging innovation and assisting with the acceleration of start-ups.

What are the tax incentives?

Broadly, the Act provides investors with:

  • a 20% non-refundable carry-forward tax offset for qualifying investments, capped at $200,000 for each investor and their affiliates (combined) per year
  • a deemed capital account treatment and an exemption from capital gains tax (CGT) for qualifying investments held between one and ten years (capital losses on investments held for less than ten years must be disregarded) (tax incentives). Investors who hold the shares for at least 10 years receive a market value cost base on the 10th anniversary of their acquisition

Tax offsets directly reduce the amount of tax payable by investors. As the early stage investor tax offset is a non-refundable tax offset, it can reduce the amount of tax payable to zero, but it cannot result in a tax refund on its own.

What investments will qualify?

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Rainmaking Recommendation from Jaimie Field: The Most Important Question the Candidates aren’t Answering

Not to fear! The title of this post doesn’t reflect a post that has anything to do with politics (whew!). Instead, it’s focusing on a question that you, as lawyers, should be answering for your clients, and it’s one that might surprise you.

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This is not a commentary on the candidates for President this year.  I will not be telling you how to vote or for whom I am casting my ballot.

When I was in college and in law school, to make extra money, I would bartend.  The very first thing I was taught when I learned to bartend is there are three subjects which you never talk about to customers – sex, religion or politics.

So I am not here to discuss the issues, or even the candidates themselves.  Only to address the one question that, in my humble opinion, all candidates for office, including on the local, state or federal level seem never to answer: 

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Food Fight and Road TRIPS!!!!!: Treaties And Product Names Getting Messy

photo-1464688934599-fc5108f8d1afTwo words, uttered in a certain tone and with a certain speed, are apt to suggest a bit of wastefulness, a touch of anarchy, and yet a sense of communal participation.  Those two words, from Faber College of lore to present discussions of law:

Food Fight!!!!!.  And, we see the long smoldering discussions of geographical indications, or GIs, as part of the Transatlantic Trade and Investment Partnership negotiations are prompting some (such as the US Based Consortium for Common Food Names) to lay out just what might be at stake in this food fight.  Though such groups are concerned that the Transatlantic Trade and Investment Partnership could provide legal ammunition for foreign manufacturers to up end American markets, those same groups overlook the fact that such legal ammunition may already exist.

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ILN Today Post

LexCounsel Regulatory Update – October 17, 2016

MEDIATION AND CONCILIATION UNDER THE NEW COMPANIES ACT

I. Dispute Resolution under the Companies Act, 2013

The Companies Act, 2013 (“CA 2013”) attempts to modernise the way companies in India are owned and operated, in sync with the practices across the world. In the same spirit, the CA 2013 makes it possible for parties in a dispute before government administrators (such as Regional Director, Registrar of Companies, etc.) or the tribunals formed under the CA 2013, i.e. National Company Law Tribunal or the National Company Law Appellate Tribunal, to request for the dispute to be referred to mediation or conciliation. The process of mediation and conciliation is to be conducted before experts empanelled with the mediation and conciliation panel (“Panel”) under the CA 2013.

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Senior appointments grow Hall & Wilcox Sydney team

Leading independent business law firm Hall & Wilcox has made two senior appointments to grow its corporate and projects presence in the Sydney market and add further depth of expertise nationally.

Paul O’Donnell joins the firm’s Projects team as a partner with a focus on the energy and resources sector.

Paul has extensive experience in the development of energy projects and acquisitions, energy trading and regulation, with a particular focus on renewable energy. Paul’s clients include companies from throughout the energy sector in Australia and internationally.

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Employer Must Abide by Non-Compete Payment – Employment Law This Week

Featured on Employment Law This Week: An employer cannot waive its own non-compete agreement to avoid payment, unless the agreement specifically grants it the right to do so.

An employee of a financial services firm in Illinois signed an agreement that required a six-month post-employment non-competition period in exchange for $1 million from his employer. When the worker resigned, the employer sent a notice waiving the agreement and telling the employee that it would not pay him the $1 million. After waiting out the six months, the employee filed suit against his former employer. The Illinois Court of Appeals found that there was no provision in the agreement that allowed the employer to change the terms without consent from the worker, and because the employee upheld his end of the contract, the employer must pay him what is due.

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ILN Today Post

HOWARD & HOWARD CONGRATULATES WADE B. GOCHNOUR ON HIS SELECTION TO THE CLASS OF 2017 LEADERSHIP HENDERSON PROGRAM

Gochnour-PhotoRoyal Oak, Michigan, October 18, 2016: Howard & Howard Attorneys PLLC is pleased to announce that Wade B. Gochnour has been selected to the Class of 2017 Leadership Henderson Program. Mr. Gochnour, who resides in our Las Vegas office, concentrates his practice in the areas of business law, commercial litigation and construction law.
“Leadership Henderson is a nonprofit organization under the Henderson Chamber of Commerce Foundation. Designed as a program of exploration and examination, Leadership Henderson examines issues, asks critical questions and strives to provide answers that do not conform to the status quo.

The program is an eight-month course devoted to educating and empowering civic-minded professionals with a goal of building and maintaining a strong network of effective community leaders. Through panel presentations by community leaders and experts, simulations, plus hands-on experiences, participants learn about current issues pertaining to local economy, government, social services, health, gaming, business and education that effect the residents and businesses that call Henderson home. Selection of participants (both acknowledged and aspiring leaders) is based upon demonstrated leadership experience, potential, and abilities.” (http://www.hendersonchamber.com/programs/chamber-foundation/leadership-henderson/)

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Twenty-Five Davis Malm Attorneys Recognized by Massachusetts Super Lawyers

The selection process is multi-phased and includes independent research, peer nominations and evaluations that identify a high degree of peer recognition and professional achievement.

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Can employers be vicariously liable for their employees’ crimes? The answer might surprise you…

A recent High Court decision confirms that, in special cases, employers can be vicariously liable for the intentional criminal acts of their employees.

This decision is particularly important for employers whose employees provide intimate care for vulnerable people, including operators of aged care facilities, boarding schools and hospitals.  It shows that these sorts of employers can have liability in the civil jurisdiction for the damage incurred because of their employee’s criminal conduct.

Background

It has long been established that employers can be vicariously liable for the harmful acts of their employees that are done within the course of their employment. In many instances an employer’s liability to pay damages is clear, such as when an employee does their job negligently and causes harm to another.

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