Posts Tagged ‘assets’
- Blackberry received some positive market growth following the demonstration of their new product, The Playbook, in Los Angeles last week. Research in Motion (RIM), a Canadian company, witnessed a growth of 6.2 percent in share price, shortly after the launch. The Playbook has received criticism from Apple for its size, measuring well over two inches smaller than the iPad. Countering this argument, RIM relied on the products attributes, including its alliance with Adobe Flash Player, which will provide enhanced video content for the new product, and remains unique to the Playbook. Significantly, RIM is channeling its efforts to provide an improved mobile device that can offer a professional experience. Notwithstanding this positive stock increase, RIM’ overall share price has fallen almost twenty three percent this year to date.
- After ten years of service the popular entertainment file sharing company, Limewire is forced to cease business. The U.S. Federal District Court in Manhattan, ruled against the company following a lawsuit filed by the music industry. Shortly thereafter, the news was published on its official website and user downloading and file sharing was brought to a halt. Prior to this trial, Judge Kimba M. Wood ruled with thirteen music companies that claimed that Limewire had infringed upon their copyrights and engaged in unfair competition. Limewire, which was founded by Mark Gorton in 2000, is to find out the extent of damages as a result of the illegal downloading, file distribution and sharing service in the New Year. Limewire is determined to continue providing music to its users collaborating with copyright holders and bridging the gap between technology innovations and infringement.
- This weekend the British government announced that Scotch Whisky, is to receive greater brand protection in China, to address the vast amount of imitations on the internationally known product. This announcement purports to make production of Scotch Whisky exclusive to Scotland. Furthermore, this move will seek to increase sales, and put an end to the three-year battle between the Scotch Whisky Association and China. Presently, with over two hundred counterfeit versions, the need to protect the brand has become more imperative than ever. The agreement will be signed in Beijing this coming week.
- In pharmaceutical news, British based company GlaxoSmithKline PLC is to pay up to $750 million, pursuant to an investigation which established that GSK had knowingly produced impure, mislabeled, and incorrect drug dosages’ which were sold to consumers after production in its factory in Cidra, Puerto Rico. The violations of current Good Manufacturing Practices (cGMP) came to light following an inspection by the companies Quality Assurance manager. Among the violations, include a contaminated air and water system, which led to cross contamination. However, the unrelated closure of the plant in 2009 was based on a decline in the local market for pharmaceutical products.
- Covered bonds scheme, widespread in Europe, may provide a method for financing mortgages in the United States. Essentially, covered bonds are debt securities, which are backed by cash flows, typically mortgages. Notably, the key difference between these covered bonds and a securitized mortgage bond are the assets, which remain on the issuer’s consolidated balance sheet. The object of these covered bonds is to reduce the likelihood the issuer will underwrite risky loans. While there is no established current practice for covered bonds in the United States, the covered bonds business is estimated at $3 trillion in Europe. This past July, the House Financial Service Committee passed the bill, which narrowly missed inclusion in the Dodd-Frank Reform Act.
- Quiznos is projected to open 15 franchise stores in Kuwait. The store disclosed that it is working in collaboration with Foodco, Inc., taking advantage of Foodco’s familiarity with the target market, from consumer trends to cultural preferences. The U.S. based company plans to adapt the sandwich shop to appeal to local tastes and needs. Furthermore, the chain intends to further extend this international expansion to Europe, the Middle East, Central and South America and Southeast Asia over the next few years.
- In pursuit of geographic expansion, ad agencies see a niche in African markets for advertising growth and as a prime market to begin global expansion after India, China and Latin America. Telecom companies, financial service firms and the makers of consumer products are among those influencing this surge of advertising growth in Africa. However, with Africa’s (although slightly improved) corruption, poverty, and language barriers in the mix, this expansion does not come without risk
- Unconventional terrorist threats stimulate a shift in Britain’s defense budget. England is to adjust its security budget in response to the latest spell of terrorist internet threats to the country. An estimated $1 trillion is spent worldwide on cyber crime a year. England’s preparation for the upcoming 2012 Olympic Games, to be staged in London, is certainly a driving force in the government’s proactive approach to this new type of threat and budgetary change.
- Finally, a look back in time to see the story behind; Sony, IBM, Gucci, DuPont, and others.
Compiled and summarized by Muireann O’Keeffe.
In April, we published “What Offshore Businesses & Tax Practitioners Need to Know About IRS Draft Schedule UTP,” a post on the Proposed Schedule UTP (Uncertain Tax Positions), which is a schedule certain foreign businesses would be required to file with their Form 1120 to disclose uncertain tax positions when the business assets are at least $10 million and the business issues or is included in audited financial statements. On September 24, 2010, the IRS finalized this schedule and also released Announcement 2010-75 explaining the form. The final schedule and instructions make some changes to the draft from April. Here is an overview of the major changes:
- There is a five year phase-in of the reporting requirement for the UTP if the Corporation’s assets are under $100 million.
- There is no reporting of a maximum tax adjustment (the draft required this).
- There is no reporting of the rationale and nature of uncertainty in the concise description of the position (also required in draft form).
- There is no reporting of administrative practice tax positions.
Please consult an attorney for assistance in preparing this new form.
New Internal Revenue Service (IRS) proposal would require business taxpayers to report “uncertain tax positions” (UTP).
On June 1, 2010, the comment period ended for the new IRS Draft Schedule UTP and Draft Instructions. What is this schedule and where does it apply?
The Hiring Incentives to Restore Employment (HIRE) Act, enacted March 18, 2010, contains provisions attempting to promote job creation and stabilize the economy. Here are some major provisions which may affect you and your business:
Foreign Account Tax Compliance: In the wake of UBS and the IRS Offshore Voluntary Disclosure Program, the HIRE Act rules have comprehensive measures to reduce offshore noncompliance with new tools which discourage perceived offshore tax abuse. One provision requires an individual with an interest in a specified foreign financial asset to attach a separate disclosure statement to his tax return in any year where that individual’s aggregate value of foreign assets is over $50,000. This statement does not replace the current FBAR (Form TD F 90-22.1) and carries some large penalties for noncompliance.