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Meet the Co-chairs - TIAG


Spearman, Lisa
Mercer & Hole
lisaspearman@mercerhole.co.uk


On, Wendy
Fineman West & Co. LLP
won@fwllp.com


Brenner, Saul B.
Berdon LLP
sbrenner@berdonllp.com


Saba, Fuad
FGMK, LLC
fsaba@fgmk.com


Meet the Co-chairs - TAGLAW


Derewenda, Anna K.
Williams Mullen (VA)
aderewenda@williamsmullen.com


Meet the Co-chairs - TAG-SP


Severino, Maria
Collins Barrow Toronto LLP
mseverino@collinsbarrow.com


Author: Matthew T. Fuller

The Multistate Tax Commission ("MTC") has just announced that it is going forward with a voluntary disclosure program for sellers on Amazon who have created nexus in a state because of their participation in the Fulfillment by Amazon ("FBA") program.  The MTC is an intergovernmental state tax agency that works on behalf of states and taxpayers to facilitate the equitable and efficient administration of state tax laws that apply to multistate and multinational enterprises.

What is the FBA Program and How Does it Create State Tax Nexus? 

Under the FBA program, sellers can list their products with Amazon and have Amazon hold their products at one of its warehouses before shipping products to the purchaser.  The presence of inventory in a state is sufficient to create nexus for sales tax, corporate tax, and personal income tax purposes, regardless of whether the seller has any other presence within the state where the inventory is stored.

Read the entire article.

Author: Matthew T. Fuller

Effective July 1, 2017, the Illinois individual income tax rate goes from 3.75% to 4.95% and the corporate income tax rate from 7.75% to 9.50% (inclusive of the replacement tax). 

Because the tax rate increased in the middle of the tax year for calendar year taxpayers, it is likely that the state will again permit taxpayers to figure their tax based on the specific accounting method.  Under the specific accounting method, a taxpayer can treat their income or loss and state modifications as though they were earned in two different taxable years.  For an individual, the amount earned prior to July 1, 2017, is taxed at 3.75%.  The amount earned on or after July 1, 2017, is taxed at 4.95%.  The two tax amounts are then added together to get the total tax liability.

Read more: FGMK Tax Alert: Illinois Increases Individual and Corporate Income Tax Rates

India’s looming the new regime of Goods & Service Tax (“GST”), a modern tax reform which will usher in growth and opportunities for businesses in India. It is a tax trigger, which will lead to business transformation for the industry. It will have a far-reaching impact on business avenues, compelling organizations to realign bottlenecks such as production cost, production time, supply chain, compliance, logistics etc. with changing indirect tax structure. 

GST is a value added tax where tax is imposed only on the value added at each stage in the supply chain. It is levied at all points in the supply chain. Credit is paid for acquiring inputs used in making the supply. In India GST is defined as “tax on supply of goods or services other than alcohol for human consumption”. In simple language, GST is a single tax on all goods and services in the entire economy.

Read more: The Goods & Services Tax in India: Impact Analysis on Various Sectors

Non UK domiciliaries are only subject to UK Inheritance Tax (IHT) on their UK assets. Foreign assets are treated as excluded property, which are outside the scope of UK IHT while they are neither domiciled nor deemed domiciled in the UK (broadly once they have been resident in the UK for more than 15 out of the previous 20 tax years, under the proposed new rules).

It has been common practice for non UK domiciliaries to acquire UK residential property via a non UK company of which they are the ultimate beneficial owners. In doing so the owner was viewed as holding a foreign asset (the shares), which represented excluded property. Furthermore, the shares may have been settled on to a trust prior to the settlor becoming deemed domiciled in the UK and thereby preserving excluded property status for the future.

Read more: IHT exposure: Non UK domiciliaries and UK residential property

Contact: Gordy Jones

The obligation for registered investment companies (RICs) to pay foreign capital gains tax is not new by any means, but it is gaining more attention lately, making it imperative for fund management to take note.

Foreign tax withholding on interest and dividends has been and continues to be the responsibility of the fund custodian, monitoring and remitting taxes based on a specific country’s legislation. Foreign capital gains tax, on the other hand, traditionally has been the responsibility of fund management. The custodian is not responsible for tracking tax basis of investments; therefore, it does not have the information to appropriately pay the foreign capital gains tax.

Read more: Monitoring Foreign Capital Gains Tax Exposure for RICs