Tax Court, however, disagrees with taxpayer on value of the receivable. In the May 13, 2021, decision in the Estate of Clara M. Morrissette, the U.S. Tax Court (T.C. Memo 2021-60) struck down the Section 2036, 2038, and 2703 arguments put forth by the IRS pertaining to split-dollar receivables; however, Judge Joseph Robert Goeke made significant adjustments to the value of the receivables. Background The IRS issued a $39.4 million deficiency with respect to the estate of Clara M. Morrissette, increasing the fair...

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In this week’s Roar, we’ve got China-Europe freight trains helping the fight against COVID-19, rapidly increasing ocean shipping delays, the industry’s impending peak season, efforts to cut supply chain waste, and the rise of sustainable aviation fuel. First, there’s something interesting happening with the China-Europe freight trains located in the Lianyungang, Jiangsu province. They are not only providing safe and reliable international transportation, but they’re also helping the global fight against the coronavirus pandemic. According to China Daily, they carried 3 million doses...

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On 18 May 2021, the EU Commission published a Communication on Business Taxation for the 21st century (“the Communication”). The Communication sets out both a long-term and a short-term vision to support the EU’s recovery from the COVID-19 pandemic, creates a fair and sustainable EU tax business environment, and takes account of the ongoing work on international corporate tax reform at OECD level. Corporate taxpayers are expected to be significantly impacted by the proposed framework, in particular the new framework for income taxation...

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This article is part of Portolano Cavallo’s “INFORM@Corporate” Newsletter. Click here to subscribe. | 1. Introduction The Court of Milan has recently ruled, that breaches of representations and warranties on the target’s business and its assets (so called “business warranties”) cannot trigger the termination of the shares purchase agreement pursuant to section 1497 of the Italian Civil Code. This Section, generally applicable to any sale-purchase agreement, reads “when the goods sold do not have the qualities promised or the  qualities essential for the intended...

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Key insights Examiners at both the state and federal levels are focusing on technology service provider contracts and ongoing vendor management and oversight. Before you finalize contracts, evaluate the technology service provider’s proposal and appraise pricing. Clearly define the rights and responsibilities of both parties before you sign the contract. Establish that you have protection against service disruption that could impact your access to the system and your ability to provide services. More than ever, financial institutions rely on vendors...

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EGF approved nearly half its planned 2021 financing for SMEs, mid-caps and public sector The €24.4 billion European Guarantee Fund, part of an initial EU COVID-19 recovery package to be deployed within 2021, is about to hit halfway mark €11.7 billion in financing to support businesses around the EU in COVID-19 pandemic Approved funding is expected to mobilise nearly €94 billion The European Guarantee Fund (EGF), part of the €540 billion EU recovery package agreed in 2020, has approved funding amounting...

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With several months of delay, the European Commission this week adopted its ambitious plan for reforming the EU’s corporate taxation system over the coming years, proposing broad short-term and long-term measures to promote a robust, efficient and fair business tax system in the European Union.  The new strategy, presented by Commission Executive Vice-President for an economy that works for people, Valdis Dombrovskis, and Economy Commissioner, Paolo Gentiloni, is a renewed attempt to reform the EU’s corporate tax system since Member States...

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Previously published in the American Society of International Law | Paul Hughes and Alex Melia co-authored an article titled “Parent Company Influence Over Group Compliance Policies” for the American Society of International Law. The article, published May 6, discusses UK company governance obligations, the adoption of corporate compliance programs, and the degree to which new UK case law may render parent companies directly liable for those programs that have been implemented on a group-wide basis. Authors: Paul Hughes, Of Counsel, STEPTOE ...

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