Monthly Archives: September 2017

ILN Today Post

Washington: Attorney General wins first-of-its-kind tax-zapping case

In recent years, it has not been easy for states to collect all the sales and use tax revenues they are entitled to. This is due, in part, to the difficulty they have had asserting authority over out-of-state Internet retailers, who are not subject to the same tax rules that in-state retailers are.

A lesser-publicized problem poses another mechanism through which tax dollars disappear.  In 2012, the National Conference of State Legislatures (NCSL) issued an article warning that “[a]utomated sales suppression devices…have proliferated with the computerization of cash registers and have given retailers the ability to cheat state and local tax departments out of owed sales taxes through the falsification of electronic records of point of sale (POS) systems (modern cash registers).”

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ILN Today Post

Illinois: Governor approves bond issue, objects to a gas tax increase restores EDGE tax credit

It was just two months ago that Illinois passed a budget, the first new one in two years.  As we described then, it included historic increases in personal income and corporate tax rates. Lawmakers overrode Governor Rauner’s veto and passed the budget into law, which was not enough to stem speculation that Illinois’s credit rating was veering dangerously close to junk status.

Earlier this month, the Illinois News Network reported that Standard & Poor’s “latest Illinois report removed the Land of Lincoln from a negative to a stable outlook” because of the budget and its $5 billion tax hike.  But, with a credit rating of BBB -, “Illinois still has the lowest credit rating of all U.S. states.”

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ILN Today Post

Empirical research does not support optimism of tax incentive packages

As has been widely publicized, on September 19, 2017, Wisconsin governor Scott Walker approved of Assembly Bill 1. This is the legislation that creates an electronics and information technology manufacturing zone, makes changes to the enterprise zone tax credit program, authorizes the limited use of the design-build construction process, grants contingent highway bonding authority, and makes appropriations, all of which made the historic FoxConn business incentive package possible.

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ILN Announces Fourth Release – ‘Establishing a Business Entity: An International Guide’

I am thrilled to announce the fourth release of our Corporate Group’s International Guide, Establishing a Business Entity. This collaborative electronic guide offers a summary of key corporate law principles in 31 countries across the globe, serving as a quick, practical reference for those establishing an entity in these jurisdictions. In 2017, we have added ten new jurisdictions, which includes Australia, Brazil, Colombia, France, Greece, India, New Zealand, Puerto Rico, South Korea, and Sweden. The group continues to work collaboratively to update the guide with the latest figures and regulations for their countries, and we’re really excited to provide this valuable resource for firms and companies with multinational business needs.

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Take 5 Newsletter: The Ground Continues to Shift in Wage and Hour Law Continue Reading…

A year ago, employers across the country prepared for the implementation of a new overtime rule that would dramatically increase the salary threshold for white-collar exemptions, on the understanding that the new rule would soon go into effect “unless something dramatic happens,” a phrase we and others used repeatedly.

And, of course, something dramatic did happen—a preliminary injunction, followed by a lengthy appeal, which itself took more left turns following the U.S. presidential election than a driver in a NASCAR race. The effect was to put employers in a constant holding pattern as they were left to speculate whether and when the rule would ever go into effect.

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Seventh Circuit Breaks from the Pack in Holding That Long-Term Leave Is Not a Reasonable Accommodation Under the ADA

In a decision that will be celebrated by employers in the Seventh Circuit struggling with employee requests for post-Family Medical Leave Act (“FMLA”) leave as an accommodation under the American with Disabilities Act (“ADA”), the Seventh Circuit in Severson v. Heartland Woodcraft, Inc., 2017 U.S. App. LEXIS 18197 (7th Cir. Sept. 20, 2017), recently held that an employer did not violate the ADA by firing an employee instead of extending his leave after he exhausted all leave under the FMLA.  This holding – finding that extended long-term leave is not a reasonable accommodation under the ADA – is not only contrary to the Equal Employment Opportunity Commission (“EEOC”)’s position regarding extended leave as a reasonable accommodation, but also conflicts with several other federal Circuit courts that had previously ruled on the same issue (holding that extended/post-FMLA leave can be a reasonable accommodation under the ADA).

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Two Year Limitation Period Applies to Foreign Judgments

In the recent case of Independence Plaza One Associates, LLC v. Figliolini 2017 ONCA44, the Ontario Court of Appeal confirmed that:

  1. a two-year limitation period applies to a proceeding on a foreign judgment; and
  2. the limitation period begins to run, at the earliest, when the time to appeal the foreign judgment has expired or, if an appeal is taken, the date of the appeal decision.
The court held that the time may be longer if the claim was not “discovered” within the meaning of section 5 of the Limitations Act, 2002 (“Limitations Act”) until a date later than the appeal decision.
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Court Green Lights Immediate Appeal Of Chipotle Collective Action Decertification Order Continue Reading…

As noted in earlier postings, in March of this year, a federal judge in New York handed Chipotle Mexican Grill a significant victory, denying a request by salaried management apprentices alleging misclassification as exempt from overtime to certify claims for class action treatment under the laws of six states, as well as granting Chipotle’s motion to decertify an opt-in class of 516 apprentices under the Fair Labor Standards Act (“FLSA”).  The plaintiffs then sought—and in July 2017 the U.S. Court of Appeals for the Second Circuit granted—a discretionary interlocutory appeal of the ruling concerning the six state-law putative classes, allowing the plaintiffs to obtain immediate review of that decision under Rule 23(f) of the Federal Rules of Civil Procedure rather than waiting until after final judgment in the case to pursue an appeal as of right.

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Talking Tax – Issue 96

Cases

Taxpayer not presently entitled to contingent distributions

In Lewski v Commissioner of Taxation [2017] FCAFC 145, the Full Federal Court allowed an individual Taxpayer’s appeal against an Administrative Appeals Tribunal decision to uphold amended assessments that included trust distributions in assessable income.

The Taxpayer was a beneficiary of the ACE No 4 Trust (ACE Trust) and the Arjod Trading Trust (Arjod Trust). The Taxpayer’s husband was the sole Specified Beneficiary of each trust. The Commissioner of Taxation purported to assess the Taxpayer on a share of the net income of the trusts. The Taxpayer’s objection and appeal to the Tribunal were disallowed but the appeal to the Court was upheld.

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Five Easy Tips to Network Like a Boss

We’ve talked extensively on Zen about how to make the most out of conference attendance and networking. But with the ILN’s European Regional Conference coming up next week, it’s at the forefront of my mind! Before we jump in, I’d like to point out that I think the word “networking” can get a bit of a bad rap. But in my mind, it’s really exchangeable with “business development.” While it doesn’t represent the entire sphere of activities that business development can encompass, when you’re effectively networking, you’re engaging in activities that can bring you more business, either now or in the future. So it’s worth investing your time and energy in.

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