The German carry taxation regime pursuant to Section 18, paragraph 1, number 4 in the German Income Tax Act (referred to hereafter as “Section 18”) provides for a beneficial tax treatment of carry income of German resident...more
On January 31, 2024, in Mehra v. Boston Globe Media Partners, LLC, a Massachusetts Superior Court judge held that a percent-of-profit incentive payment under a profit-sharing scheme is not a commission subject to the...more
Each government agency has set its own standard for determining whether a worker is properly classified as an employee or an independent contractor. Employers need to take into account the tests used by different federal...more
This article is one in a series of articles explaining various terms commonly seen in term sheets issued by venture capital funds. We give example language based on the commonly referenced National Venture Capital Association...more
Another Change- Last week BDO confirmed that it was going to convert from an entity organized as a limited liability partnership under state law to one organized as a corporation. With that, BDO became the latest in a...more
Every now and then, some well-meaning colleague will ask how I spend my free time. I usually pause before responding – to gather my thoughts – which prompts them to restate their question with what they believe is greater...more
The old adage — if it sounds too good to be true, then it probably isn’t — still rings true when it comes to MoviePass, which ultimately resulted in a criminal indictment charging two former executives with securities fraud....more
Many believe the law prohibits an Israeli NPO (Amutah) from operating business activity in order to maximize profits for itself. One of the reasons for this is the language of section 1 of the Amutot Law. The section...more
Within many law firms, any variations on the word “commoditized” (i.e., commodity, commodification, commodified) are very bad words with negative connotations. Lost in this traditional perspective are the facts that a)...more
Take one type of client work for which you are competing on price. Pick something routine. Preferably work you currently process at a high volume or could process at a high volume if only you had better support systems and...more
Medical device manufacturer, Medtronic, began its second trial on June 14 in the US Tax Court in a $1.36 billion transfer pricing dispute with the IRS. The trial concluded on June 25 and is among the most significant transfer...more
As happens in personal life (and certainly with recent headlines), law firm leaders frequently get side-tracked firefighting, acting on urgent tasks that distract from doing important things that will have a more impactful,...more
The rapidly increasing importance of a company’s environmental, social and governance (ESG) performance to its business value, has been a critical trend leading into 2020. This trend was accelerated by the COVID-19 pandemic,...more
Retaining experienced counsel with knowledge of not only proper procedure but how to present a case is critical to prevailing at the Board of Tax Appeals (BTA). Recently, the BTA denied the taxpayer’s claim for a business...more
On 30 June 2020, the Hong Kong Inland Revenue Department (IRD) published Departmental Interpretation and Practice Note No. 61 (DIPN 61) on the Profits Tax Exemption for Funds. DIPN 61 clarifies the IRD’s interpretation and...more
The current COVID crisis will have the effect of accelerating a trend that has been on the horizon for some time – moving the legal industry in the direction of creating explicit linkages between partner compensation and...more
On February 3rd, the U.S. Fish and Wildlife Service (USFWS) published a Notice of Proposed Rulemaking that would completely eliminate criminal penalties for “incidental” migratory bird deaths under the Migratory Bird Treaty...more
For many law firms, 2019 was a good year, as improving demand and effective pricing strategies supported bottom-line results. As we look to 2020, profitability remains a hot topic for most law firm leaders. The industry is...more
Ride-hailing company Uber has resolved EEOC charges related to its alleged “culture of sexual harassment” and will “start a $4.4 million class fund to compensate victims of sexual harassment or retaliation from as early as...more
On September 24, 2019, the EU General Court (General Court) issued its long-awaited judgments in relation to the appeals brought against two European Commission (EC) decisions of 2015 concluding that tax rulings granted by...more
Since the Michigan Legislature passed the new No-Fault law earlier this summer, the auto insurance companies in this state have been scheming on how to get around many of the new restrictions imposed by the new law....more
The recent federal court opinion issued in United States ex rel. Integra Med Analytics, LLC v. Baylor Scott & White Health, et al, illustrates the continued importance of examining the plausibility of allegations made in qui...more
Law firm profitability is traditionally measure in the aggregate, i.e., at the overall firm level, and then divided by the number of current equity partners to produce a profitability metric, profits per partner, that is as...more
In July 2015, Toshiba Corporation (“Toshiba”) revealed that it had overstated its profits by billions of dollars. As a result, Toshiba implemented a plan to sell a subsidiary to Canon Inc. (“Canon”). In March 2016, Toshiba...more
A new profits tax exemption ordinance (Bill)1 became effective on 1 April 2019. The Bill introduces a Private Funds Exemption, which has significant implications for the private funds industry. Benefits include: fund managers...more