Last week, the California Legislature passed two bills, together the "Climate Accountability Package," that would mandate the public disclosure of greenhouse gas emissions (GHG) and climate-related financial risk by companies doing business in California that meet different revenue thresholds. California Governor Gavin Newsom has indicated he will sign the bills into law, subject to "some cleanup on some little language," the details of which remain undisclosed.1California is the first governmental actor in the United States to mandate corporate climate-related...

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On September 15th, Sika announced planned changes to the Board of Directors and the Group Management. The decisions have been made ahead of the presentation of the new growth strategy at the Capital Markets Day on October 3, 2023. Thierry F. J. Vanlancker will be proposed as new Chair of the Board of Directors at the next Annual General Meeting in 2024, as Paul Hälg has decided to step down from his position after twelve successful years to make way for a new...

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On September 8, 2023, the Department of Treasury (the Treasury) and the Internal Revenue Service (the IRS) released Notice 2023-63 (the Notice), which sets forth the Treasury and the IRS’s intent to issue proposed regulations addressing the application of Section 174.1 In 2017, legislation commonly referred to as the Tax Cuts and Jobs Act amended Section 174 to eliminate the option for taxpayers to deduct R&E expenditures and instead to require taxpayers to capitalize and amortize “specified research or experimental”...

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Amal Alliance, an international non-profit organization committed to fostering education and well-being among marginalized communities, is thrilled to be part of the prestigious Clinton Global Initiative (CGI) Greenhouse organized for the second consecutive year. As we embark on this journey, Amal Alliance is ready to make an even greater Commitment to Action on pressing issues such as educational change, mental health equity, and creating an inclusive society. Selected from a competitive pool of entrepreneurs and startups, Amal Alliance joins a...

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Key elements of the IRS’s efforts to reverse the sharp decline in audit rates for wealthy individuals, partnerships, and other high-income earners, without increasing audit rates for individuals earning less than $400,000 a year, include the following. Expanding high-income/high-wealth and partnership compliance work Prioritizing high-income cases The IRS’s High Wealth, High Balance Due Taxpayer Field Initiative is intended to intensify work on taxpayers who have more than $1 million in total positive income and $250,000 in recognized tax debt. Building off its...

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On August 23, 2023, the Office of Management and Budget (OMB) published its final guidance implementing the Build America, Buy America (BABA) preference, which requires that all of the iron, steel, manufactured products, and construction materials used in infrastructure projects receiving federal financial assistance be "produced in the United States." Here are the most significant takeaways between the initial April 2022 guidance and final August 2023 guidance: The final guidance provides a new definition of "manufactured products," which provides that...

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The current Payment Services Directive 2 (PSD2), which was adopted in 2015, sets out the rules applicable to the EU retail payments industry. Since then, significant developments have taken place in the payments industry. The most notable of these include the increased use of contactless and instant payments, the introduction of major new players into the market, and the increasing prevalence of fraud. Given the ever-evolving nature of the payments industry, the European Commission undertook a review of PSD2 in...

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The business landscape has evolved with an increased focus on corporate responsibility, encompassing Environmental, Social, and Governance (ESG) considerations. Companies — from large multinationals to small privately owned businesses — are incorporating ESG and sustainability practices in their strategy as it becomes increasingly important for consumers. Simultaneously, there has been increased emphasis on tax transparency and accountability for companies both domestically and abroad. Recognizing the interconnectedness of these issues, many companies are now actively integrating ESG principles into their...

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The Trepp CMBS Special Servicing Rate rose 5 basis points in August to 6.67% — the seventh consecutive increase. Six months ago, the rate was 5.18%, and one year ago, the rate was 4.92%. As has been typical of this year, the office sector led property types with the highest monthly increase, up 39 basis points. While most other property types had negligible changes, the multifamily rate rose by 32 basis points and the retail rate fell by 80 basis points. The largest loan to...

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On 12 September 2023, the European Commission proposed a Council Directive on Business in Europe: Framework for Income Taxation (BEFIT). The BEFIT proposal was announced earlier and contains a common corporate income tax framework for groups active in the EU. BEFIT lays down rules for calculating an aggregated tax base for members of a BEFIT group and the allocation of the tax base between (eligible) BEFIT group members. The proposal is strongly connected to the Pillar 2 Directive as well...

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