Basman Smith LLP in Toronto joins GGI

Basman Smith LLP is a full service, highly professional Canadian law firm, formed over 50 years ago. The firm is based in Toronto, Ontario, Canada’s largest city and its business capital.

Basman Smith‘s services are addressed to a wide range of business clients and individuals. The firm provides legal assistance in all major practice areas. Its committed and professional team of 23 lawyers and 19 partners, as well as its administrative staff, are able to serve their clients in English, French, Mandarin, Urdu and Hindi.

Basman Smith’s practice areas include broad range of business related services, all aspects of Personal and Business Litigation, services related to family matters, as well as Estate, Tax Planning and Litigation, Estate Administration, all aspects of the Canadian immigration process, Intellectual Property and many more. The firm’s special expertise embraces Venture Capital, Private Equity, Financial Services, Technology Start-Ups, M&A, IPOs, etc. For a full list of services please visit Basman Smith’s firm webpage.

Contact:

Dan Rothberg
Partner

Toronto, Canada
T: +1 416 365 0300
E: drothberg@basmansmith.com
W: www.basmansmith.com

GGI adds a new CPA firm in Buffalo, NY

Brock, Schechter & Polakoff, LLP recently joined our alliance and will be representing GGI in Buffalo, New York. The firm was founded in 1972, as a result of a merger of 3 accounting practices. It currently employs over 35 professionals, supervised by 6 partners, who service the firm’s clients in the United States and Canada as well as many other countries around the world.

Brock, Schechter & Polakoff, LLP has a large international tax practice concentrating in US-Canadian cross border tax issues and compliance. It also provides a wide range of Business Consulting services.

The firm’s mission is To Exceed Client Expectations with each and every service rendered. It also attaches great importance to staff development and promotes positive work environment. Furthermore Brock, Schechter & Polakoff, LLP is a member of the Private Companies Practice Section of the American Institute of Certified Public Accountants.

Contact:

Robert J. Sommer
Partner

Buffalo, NY, USA
T: +1 716 854 5034
E: rs@bspcpa.com
W: www.bspcpa.com

GGI Marketing Webinar II: Leveraging The GGI Global Brand Online

The second GGI Marketing Webinar took place on Wednesday, 12 March at noon (EST) and was attended by nearly 20 of GGI member firms’ marketing professionals.  The topic of the webinar, “Leveraging the GGI Global Brand Online” covered an overview of the GGI corporate design manual and the many uses of the GGI Independent Member logo in website design and in marketing collateral (business cards, letterhead, email signatures, and advertisements).  The second half of the event highlighted GGI publications (Insider & Forum) and the closed LinkedIn group, as platforms for marketers to share their firm’s successes, relevant news, and publications.

The event was co-presented by Inna Deputat, Business Development & Marketing Practice Group Chairperson and Sophia Moon, Social Media & Marketing Manager.

These events are exclusive to all GGI member firms.  The target audience includes, but is not limited to, marketing professionals within GGI firms.  Firm leaders who wish to join are warmly welcome to.  There is no prerequisite knowledge or experience required.  The goal of these events is to build a community of GGI marketing professionals, to provide support to our member firms through the sharing of best practices, and to strengthen the GGI global brand with a unified strategy across our membership.  The next Marketing Webinar is scheduled to take place on Wednesday, 28 May at noon, EST.

If you would like to receive these email invitations, please email moon@ggi.com.

Using Apps to Market Your Practice – a UK Accountants’ Story

As technology changes, so professional service firms should be evolving to ensure their marketing includes the latest technology and platforms for communicating with audiences, whether via social media, e-marketing or apps. Since the arrival of the iPhone and the inception of apps in 2007, the app system has exploded. According to research*, 1.2 billion people globally are now using apps on a regular basis and this is expected to expand nearly 30% by 2017.

Apps can be particularly useful for developing new lines of communication with both clients and prospects, whether it is opening up marketing opportunities, extending the firm’s brand, providing general information or improving client support.

The Haines Watts experience

In early 2011, Haines Watts launched a UK iPhone tax rates app. At the time, the firm were the first UK accountancy firm to launch a tax rates app of this kind. Haines Watts did not have a “mobile strategy” in place at this point, the firm merely saw it as a way of extending the Haines Watts brand, helping client advocacy (by replacing hard copy tax rate cards with a mobile app) and a way of generating good PR coverage by being the first to launch such an app. No targets were set for the number of downloads expected as there was little information available for reference. The firm did secure good PR coverage (both online and offline) for the app, but also secured a large amount of downloads for the app (over 11,000 downloads in the first year).

This success then led the firm to develop the same app for Android devices a year later. However, downloads of the Android app failed to match those of the iPhone app, with just over 2,000 downloads on the Android platform. This may have been due to the time-delay launching the Android version or because iOS devices are more commonly used by much of the target market, UK business owners.

The UK accountancy app market

In the last two years, many firms in the UK have developed a variety of apps and external marketing and tax companies have also developed template tax apps that smaller accountancy firms can buy off-the-shelf and brand as their own. This makes it easier for small firms to buy into the app market at low risk and low cost.

One UK marketing company has developed such an app, which features excellent functionality and is not very expensive. However, a major problem is that more than 200 UK firms have already bought into the same app and therefore any form of differentiation from others in the marketplace is impossible. This company claim its app has been downloaded over 20,000 times, but across the 200 firms that have purchased it, this only equates to an average of 100 downloads per firm. This is therefore far lower than the number of downloads experienced by Haines Watts.

Investing in an app

The decision to invest in an app, particularly when developing your own, is more a product development process than a marketing activity. It requires considerable management and technical input combined with a clear marketing strategy for launching and promoting the app. Firms in general do not usually have extensive product development expertise and it is therefore essential that there is a very clear roadmap that guides through the process.

So, what are the key factors that need to be taken into account when exploring apps?

Objectives of the app

The first thought should be defining the objectives of the app. If it is an extension of brand or simply a marketing tool, it is probably better to take the template off-the-shelf approach to the app. If aiming for something different to what is currently on the market, then consider developing a bespoke app, using an established app developer.

Budget and cost

Budget will play a huge part in the decision to develop an app or buy a template app. Template apps can start from as little as GBP 1,000 in the UK (an initial set-up fee and monthly cost). Creating an app using a developer can easily cost ten times that, or more. So, the decision to develop an app should not be made lightly. Whilst it can be a real differentiator in the marketplace, the exercise can become rather costly and complex. It is also important to ensure that there is the budget and resources to construct the app and to maintain it in future years.

Platforms

If developing an app, it needs to be clear on which platforms you want to the app to sit. Base this decision on which devices current clients use. Statistics show that the iPhone is not the overriding leader in the phone market and that Android devices are also widely used. If wanting to cover both platforms, it will mean developing two versions of the same app, one for each platform. Then, there are tablet devices to consider, with the iPad currently a clear leader in the market.

Finding the right developer

It is essential to partner with a good app developer who can provide guidance through the process. There is a huge amount of information on websites that can help in understanding the process. A good app developer who has experience will be a real asset and perhaps consider seeking recommendations from companies that have already developed apps.

Marketing the app

Just placing the app on the App Store or Google Play is not enough to secure good download numbers. Consistent and regular marketing of the app needs to be planned.

Whether the app should be free or paid for also needs to be decided. Haines Watts apps are currently free to download (we have no plans or objectives to monetise them). In the UK accountancy market, most firms offer their apps free of charge.

Haines Watts initially undertook both national and regional PR to launch their app, shot videos introducing the app for online publications, promoted the app on their website as well as every e-marketing campaign and partners communicating with clients about the app directly. This created buzz around the launch. There is no doubt that this comprehensive marketing approach helped secure the high number of downloads. Even today, Haines Watts continue to promote the app via their website, social media and e-marketing.

In 2013, Haines Watts once again moved in the app market and launched a second app which supports an iPad version of its quarterly magazine “One”. This magazine sits within an app and the new magazine appears in the app for users to download each quarter. Having a digital version of the magazine allows Haines Watts to expand on the content and to provide content in different formats, for example embedding videos. Haines Watts are committed to building the audience by continuing to promote the digital magazine via their website, social media and e-marketing channels.

Now, in 2014, Haines Watts have also undergone a major redevelopment of their tax rate app, to build it on a more up-to-date platform and improve both the design and content. The app is now becoming more technical in content by offering personalised tax reminders based on year-end and VAT quarter dates. This should enable Haines Watts to once again market the app as different to others on the marketplace. The redeveloped app will launch in April 2014.

Tips on app development

So what have I learnt from my experience of developing apps for Haines Watts?

1)    Have a clear idea of what you want to achieve with the app.

2)    Be clear on the budget you have, not only now but in the future, to help you decide which route to take.

3)    Research the platforms your clients use and the apps they find useful.

4)    Make your app specific to one function – do not try to cover different areas in one app. Apps that cover one specific area, e.g. tax or an interface with client’s online information, will attract more people than an app diluted with many different functions. Develop different apps for different functions.

5)    If commissioning an external developer to build the app, build it in a developer account that is yours (and not the developers). This then avoids binding you to one developer in future and you will own the download audience of your app.

6)    Find a good app developer who will guide you through the process. Seek recommendations from people who have already developed apps for their business.

7)    Clearly plan how you market the app, not only for the launch but on an ongoing basis to continue building the audience.

With smartphones and tablets now essential business devices and the explosion of apps over the past few years, it is clear that professional firms need to embrace mobile technology as these platforms are increasingly being used by clients.

Do not place apps solely within the remit of your marketing departments. An app project should be a combination of customer insight from partners, technical expertise from the developer and marketing expertise for the promotion of the app. When all these are right, it is possible to deliver an app that can benefit business.

GGI member firm
Auditing & Accountancy, Tax, Advisory, Corporate Finance, Fiduciary & Estate Planning
Abingdon and 60 further offices throughout the UK

Samantha Davies
E : sdavies@hwca.com
W: http://www.hwca.com

GGI North American Regional Conference, New Orleans, USA, 15 to 18 May 2014

This year’s GGI North American Regional Conference will be held in New Orleans, Louisiana, a city with no shortage of fascinating history. New Orleans (“NOLA” or the “Crescent City”, as it is also known) is home of southern blues, soul food, and Lafitte’s Blacksmith Shop, which boasts being America’s oldest continually occupied bar. The French influences from the past remain evident throughout the city, impacting everything from architecture to cuisine.

The Conference is kindly being hosted by GGI member firm Baker Donelson and will be held at the Hotel Monteleone, the tallest and most prestigious hotel in the famous French Quarter. Located in the heart of the city, participants will have access to a range of activities throughout the conference.

The keynote speaker, Cam Marston, is the leading expert in generational insights in the workplace. His keynote speech will bring to light the challenges associated with the contrasting generational mentalities and how to promote positive interactions.

Mr. Marston has travelled extensively to share his expertise with prestigious global companies, including American Express, Coca-Cola, ESPN, Qualcomm and Merrill Lynch. Having graduated from Tulane University, his visit to New Orleans is a homecoming in which GGI is most pleased to be involved.

We also have Majeed Mogharreban presenting strategies on empowering and engaging colleagues beyond their normal duties. In addition, Mr. Mogharreban will be hosting a workshop on the importance of networking and making meetings more productive.

Beyond the usual activities associated with a GGI conference, workshops and practice groups, GGI is pleased to offer a new “Best Practices” session hosted by a panel of member firms entitled “Mentorship Strategies | Successes and Failures of Firms.” The session will take place on Thursday afternoon, 15 May, 2-4 p.m. and all are invited to attend, so please be sure to arrange your travel accordingly.

On Friday evening, Conference participants will enjoy cocktails and dinner at Latrobe’s on Royal. Once a famous bank, this building is named after its architect, Benjamin Henry Latrobe. Often referred to as the “Father of American Architecture”, his conceptions also include the U.S. Capital and the Baltimore Basilica.

The Conference has already attracted GGI registrants from around the globe. Great food, music and people will be the theme at this year’s North American Regional Conference in New Orleans and we looks forward to welcoming many of you in May.

GGI members yet to register for this conference may still do so. Please use the online registration tool at www.ggi.com (Member Login > Events). The detailed conference programme is also available on the website.

Stop Selling Vanilla Ice Cream: The Scoop on Increasing Profit by Differentiating Your Company Through Strategy and Talent

If you are like most business owners and leaders today, you feel stuck working constantly ”in” your business, for little return. Profit guru Steve Van Remortel has the solution. The Stop Selling Vanilla Ice Cream ® process offers an easy-to-follow strategic planning and talent development methodology to work ”on” your business that leads to a real differentiation and a high-performance team ready to deliver it. You will discover the answer to the most important strategic question for your business: Why will a customer choose you over your competitors?

The Stop Selling Vanilla Ice Cream process focuses on creating individual, team and organizational performance breakthroughs through the optimization of strategy and talent. Using the unique code found in your book, you will have access to a complementary detailed online assessment that clearly identifies your behavioral style, workplace motivators, and soft skills. Applying the assessment results within your teams creates a foundation for a talent management system to help you select, develop and retain the people you need to implement your strategy.

Utilizing the tools and templates on stopsellingvanillaicecream.com, you can implement the process into your organization by following the inspiring true story of Connecting Cultures. Our battle cry is Those Who Plan — PROFIT®, because over ninety percent of Steve’s hundreds of clients experience an increase in sales and profits in the first year after completing the process. Those same results and the process to create them are now available to you. It’s time to stop selling vanilla ice cream.

Steve Van Remortel, entrepreneur, strategist, author, columnist, and speaker, is inspiring business leaders in all types of organizations with the profit-critical message of business differentiation. His no-nonsense approach motivates businesspeople to take action, and his step-by-step process arms them with tools for creating real differentiation that leads to consistent and significant increases in sales and profitability. The Stop Selling Vanilla Ice Cream process focuses on creating individual and organizational performance breakthroughs through the optimization of strategy and talent–his two professional passions.

Steve has spent most of his professional life as a business owner, executive, and advisor, working primarily with privately held organizations. As founder and chief strategist at SM Advisors, he has personally completed more than 1,000 planning sessions across more than 300 different industries. The Green Bay Area Chamber of Commerce recognized his contributions to the business community by naming him the 2010 Business Person of the Year.

He earned undergraduate degrees in marketing and organizational communications and an MBA in strategic management. Steve is also a certified professional behavioral analyst (CPBA).

He lives in Green Bay, Wisconsin, with his wife, Lisa, and four children. And for the record, his favorite ice cream flavor is chocolate chip cookie dough.

Stop Selling Vanilla Ice Cream: The Scoop on Increasing Profit by Differentiating Your Company Through Strategy and Talent

By Steve Van Remortel

Hardcover; 256pages; ISBN-10: 1608323870

http://www.amazon.com/Stop-Selling-Vanilla-Cream-Differentiating/dp/1608323870/ref=sr_1_1?s=books&ie=UTF8&qid=1392206718&sr=1-1&keywords=stop+selling+vanilla+ice+cream

U.S. Tax Issues Hidden in Foreign Trust Inventories

Purchasers of foreign trust inventories should be warned that many complicated tax issues may be lurking in the history of trust structures with U.S. beneficiaries, some not too far below the surface.

Such issues include identification of the real “grantor”, accurate classification of the grantor trust status of each trust and status as a foreign or domestic trust for U.S. tax purposes, as well as proper U.S. tax planning for foreign trusts with U.S. beneficiaries in the trust documents.

Definitions under U.S. tax law

To fully grasp these issues and the complexity of the analysis required, it is helpful to review some simple definitions under U.S. tax law.

Foreign grantor trust

If a foreign trust company is the trustee of a trust, it will most likely be classified as a “foreign trust” for U.S. tax purposes. However, confirmation of this fact must be made on a trust-by-trust basis.

A foreign trust is a grantor trust (which means income is taxable to the grantor) only if (1) the grantor retains the right, exercisable either alone or with the consent of another person who is a related or subordinate party who is subservient to the grantor, to revoke the trust; or (2) the only amounts which may be distributed from the trust during the grantor’s life are amounts distributable to the grantor or their spouse. Another way of thinking about foreign grantor trust status is that the foreign grantor is deemed to “own” the assets of the trust for U.S. income tax purposes.

The rules for a trust with a foreign grantor to qualify as a “grantor” trust are much narrower than the rules for a trust with a U.S. grantor to qualify as a “grantor” trust for U.S. tax policy reasons.

A foreign grantor will not be within the U.S. tax system with respect to the trust’s income unless the trust is, for example, engaged in a U.S. trade or business or has U.S. source income. If the grantor is treated as the owner of the assets of a foreign trust for U.S. income tax purposes, no distribution from such trust made to the U.S. beneficiary would be taxable income to the U.S. beneficiary. The U.S. beneficiaries of a foreign trust which qualifies for foreign grantor trust status benefit from the ability to receive distributions from the trust which are not subject to U.S. income tax during the life of the foreign grantor, and the foreign grantor may be outside of the U.S. tax system as well.

In addition, U.S. beneficiaries of a foreign grantor trust are not subject to the throwback rules upon receiving a distribution during the life of the foreign grantor.

Foreign non-grantor trust and throwback rules

A foreign non-grantor trust is a foreign trust which is not a foreign grantor trust. The throwback rules are essentially an anti-deferral regime for U.S. beneficiaries of foreign trusts which are NOT foreign grantor trusts so that U.S. beneficiaries may not benefit from the deferral of tax that has occurred in the trust offshore when the beneficiary receives a distribution.

If a U.S. beneficiary receives a distribution from a foreign non-grantor trust that is comprised of income or gain earned and accumulated by the trust in a prior year, the U.S. beneficiary may be subject to both an interest charge and the back tax of the throwback rules.

Tax issues

These concepts are important to understand a number of “tax traps” that can create problems for trustees and U.S. beneficiaries of a foreign trust unless a qualified U.S. tax attorney has provided thorough and accurate advice concerning the foreign trust. Two of these tax traps are highlighted below.

Tax trap 1: identifying the “real” grantor

A person is the “grantor” of a trust to the extent that they either created the trust or made a gratuitous transfer to the trust. In order to achieve favourable grantor trust status, only the person who actually contributed the assets to the trust may be treated as the “owner” of the assets for U.S. income tax purposes.

Members of foreign families commonly hold assets for each other, so it is important to understand the true source of funds and whether there were any nominee agreements in place. If the person who has the power to revoke the trust or is (or whose spouse is) the beneficiary of the trust is not the “real” contributor of the assets, the trust will not qualify for foreign grantor trust status. Similarly, if a married person who contributed assets to the trust was from a jurisdiction with a community property regime, then his spouse may be a partial grantor. Without proper drafting of the trust instrument, full grantor trust status could be lost.

If a foreign corporation was the grantor and the trust was funded for a business reason of the corporation, the corporation will be respected as the grantor. If the trust was funded for personal reasons of one or more shareholders, the shareholder who had a personal reason for the funding of the trust will be treated as the real grantor.

If a foreign trust is not categorised correctly as a foreign grantor or non-grantor trust, a U.S. beneficiary cannot report distributions properly for U.S. tax purposes and the foreign trustee cannot meet its obligation to provide the correct information to the U.S. beneficiary.

Tax trap 2: failure to plan for the death of the foreign grantor

Ideally, a foreign grantor trust will be drafted to provide for a step-up in basis for the assets of the trust to fair market value upon the death of the foreign grantor. There are specific provisions in the United States Internal Revenue Code that permit a step-up in basis of foreign situs assets held in a foreign trust. The foreign grantor must have the power to direct trust income. This power should be coupled with either a power to revoke the trust or the power to alter, amend or terminate the trust. Matching the power to revoke the trust with foreign grantor trust status is relatively simple since a power to revoke is one of the tests for foreign grantor trust status. Matching a power to alter, amend or terminate with a trust where only the grantor or the grantor’s spouse may be a beneficiary is much more difficult. These provisions are often overlooked in foreign grantor trusts. A foreign trust also should be drafted to provide for foreign grantor trust status to continue upon the incapacity of the grantor.

Other issues beyond the scope of this article are timely and accurate identification of U.S. beneficiaries, the U.S. anti-deferral regimes for foreign corporations in which U.S. beneficiaries may have an indirect interest through a foreign trust and exit strategies from ownership of these foreign corporations.

It is critical for a foreign trust company to address all of these issues when acquiring a new inventory of trusts by having an experienced U.S. tax attorney review each trust in the inventory. In this review, the attorney should determine on a case-by-case basis the status for U.S. tax purposes of each trust, as well as highlighting any potential problems, pitfalls or ambiguities for U.S. tax purposes that should be addressed and resolved.

To access a more comprehensive version of this article as well as other publications by Cantor & Webb legal professionals, please visit www.cantorwebb.com.

Kathryn von Matthiessen is a partner at the law firm of Cantor & Webb, a GGI member, which focuses on the representation of international private clients in the areas of taxation, estate planning and tax compliance. Kathryn von Matthiessen focuses primarily on sophisticated personal and estate planning for high-net-worth individuals and the administration of complex estate and trusts, including advising international trust companies on reporting obligations concerning U.S. matters.

The Miami-based law firm of Cantor & Webb services high-net-worth private clients, predominantly from Canada, the Caribbean, Europe and Latin America.

GGI member firm

 

 

 

 

 

 

 

 

Law Firm, Tax, Fiduciary & Estate Planning
Miami (FL), USA
Kathryn von Matthiessen
E: kathryn@cantorwebb.com
W: http://www.cantorwebb.com

ITPG winter meeting in Milan, Italy, 6 to 9 March 2014 Boredom, horrible weather and nothing to eat…

…is not what the 73 GGI members answered when being asked what they thought about this event. On the contrary, there was an abundance of excellent food at the traditional ITPG winter meeting, which took place on a sunny March weekend in the Grand Visconti Palace Hotel in Milan. In addition, all who attended the highly skilled technical presentations enjoyed themselves immensely. Dr. Sergio Finulli, Avv. Mariagiulia Signori and Dr. Simona Cucchi from the Milan-based host firm Comma 10 organised a wonderful program for the participants. As special highlights and first-time events in an ITPG meeting, activities included skiing, filming and a carnival party in fancy dress costume.

On Thursday, six participants drove from Milan to St. Moritz in Switzerland and enjoyed a wonderful sunny skiing day, which happily did not result in any broken arms or legs.

On Friday and Saturday, Serban Beldie, a filmmaker from Romania, shot individual corporate movies for six GGI members, who had agreed to undertake this project beforehand. ITPG VC Ionut Zeche had arranged for the filmmaker to come to Milan and had booked an executive suite for the shooting. Filming was also carried out during the technical sessions and breaks.

On Friday afternoon, the technical sessions kicked off with three tax-related PG meetings. Raluca Tutu chaired the ITPG sub-group Indirect Taxes, Professor Robert Anthony hosted a brainstorming session for his case study 2014 of “a lucky life” in the Private Equity and International Wealth Management PG and Ionut Zeche chaired the Immigration & Expatriate Services PG. In the evening, all participants and accompanying persons gathered for a delicious seafood dinner in La Bisboccia Ristorante.

The ITPG meeting took place for the whole of Saturday. Oliver Biernat began the meeting with a panel discussion on “voluntary disclosure of tax evasion”, including a comparison of the jurisdictions of seven countries, each represented by GGI members. Arlene Rochlin from the International Dispute Resolution PG talked about “Get Talking!! Attorney + Accountant = Accord + MONEY!”.

After lunch, Graham Busch offered an interesting panel discussion on the latest developments of Base Erosion and Profit Shifting (BEPS) and the OECD with participants from five different countries. Jenny Panou presented a topic unknown to many tax experts: “Greek service centres – interesting for multinational groups?” and Ashish Bairagra talked on “Transfer pricing pitfalls in the initial years of incorporation”. In order to hold the attention of the participants, Oliver showed a selection of his comedy short films between the different sessions.

The middle section of the meeting featured some slides that showed the development of the ITPG since Oliver Biernat took over as chairman in 2008. Following the Milan event, the ITPG has 64 regular members and 369 visiting members. After looking at various tax databases and tax planning software, a discussion took place on a better name for “regular member” and on the venue of the ITPG winter meeting 2015. It was also decided that an ITPG FYI newsletter would be started in 2014.

Finally, GGI President Claudio Cocca held elections and Oliver Biernat was re-elected as Global Chairman of the ITPG and Graham Busch and Ionut Zeche were again appointed as Global Vice Chairmen.

On Saturday evening, all participants were encouraged to dress in a way that would be considered absolutely ridiculous at the office. Following by dinner at Spazio QC Terme Milano, they proceeded to attend a spectacular carnival party where fancy dress was obligatory.

Between the various courses of delicious food, the mind reader Federico Soldati from Switzerland, http://www.federicosoldati.com/, gave a terrific show, which fascinated the participants. He managed to solve a Rubik’s cube in not just less than 25 seconds, but also blindfolded. He was also able to find out two or three digit numbers various participants had thought of during the show and informed the room that the name of the first boy Julie Bryant had kissed was Tim.

After dinner, the party continued with live music and dancing, which continued long into the night past midnight. As usual, this was not the end for some very active attendees. It was reported that some people shocked the night-time taxi drivers in Milan with their strange outfits. When they struggled to find a bar that was open, they bought some beer and returned to the conference hotel, sitting in the lobby as the hotel bar was also closed. It came as a complete surprise to them when a group of other GGI members joined them at around 3 a.m. reporting that they had been the last guests in a bar a mere 100 metres from the hotel.

GGI member firm
Benefitax GmbH, Steuerberatungsgesellschaft, Wirtschaftsprüfungsgesellschaft
Auditing & Accounting, Tax, Advisory, Corporate Finance, Fiduciary & Estate Planning
Frankfurt / Main, Germany

Oliver Biernat
E: o.biernat@benefitax.de
W: http://www.benefitax.de

The International Standard Ruling Procedure

The Italian tax agency’s report of 19 March 2013 dealt at length with the international standard ruling procedure aimed at international companies which proposed to reach a preliminary agreement with the Italian tax authorities on

•       Determining fair market value in view of the transfer price rules (Article 110 para. 7 of Presidial decree 917/86)
•       The application proposed of rules also agreed for contracts in specific individual cases concerning paying or drawing dividends, interest, royalties and other elements of profits to or from non-resident rights holders;
•    The application proposed for specific individual cases of rules on attributing profits or losses to the stable organisational structure of a company domiciled in the territory of another state.

 The transfer price issue is particularly suited to the ruling, as the single test on income tax (Presidial decree 917/86) lays down that international inter-group transactions based on fair market value (free market price) of purchases or sales concluded with the foreign partner contribute towards earnings from business. This applies, in particular, when transferring tangible assets, semi-finished products, finished products, intangible assets in connection with research and development (trademarks, intellectual creations, inventions, knowhow etc.) or when performing services with particular reference to services of an administrative, commercial or HR nature.

Determining whether the transfer prices as used are reasonable may give rise to disputes between companies and the tax authorities. Seen in this context, the ruling procedure may help pre-empt the risk of potential disputes by concluding an agreement, in this case, the A.P.A. (Advance Pricing Agreement) with the Italian tax authorities to settle the method to be used in calculating transfer prices to determine the fair market value in advance for a limited period of time for the business transactions to which the agreement relates.

The report indicates that a majority (75%) of the APAs concluded to date involve transfer prices.

An APA is a unilaterally binding agreement which is binding only on the Italian tax authorities and not on those of the other states involved.

To offer multinational groups more certainty, however, the Italian tax authorities have allowed taxpayers who have an interest in concluding bi- or multilateral agreements to include the tax authorities of the other states involved in the agreement and hence eliminate the risk of disputes.

Applications may also be made for guidance (prior to submission), which advisers may submit anonymously, without disclosing the taxpayer’s name and which may extend to instigating or waiving proceedings. To instigate proceedings formally, application must be made to the tax collection agency’s ruling office on stamp-duty-free paper.

GGI member firm
Comma 10- Chartered Accountants & Lawyers
Auditing & Accounting, Tax, Advisory, Corporate Finance
Milan, Italy

Dr. Sergio Finulli
E: sergio.finulli@comma10.it
W: http://www.comma10.it

Bonn Forum Law & Economics

The GGI member firm DITGES PartGmbB welcomed more than 40 clients on 28 November 2013 at the University Club Bonn for the first event of the BONN FORUM LAW & ECONOMICS focusing on the topic: We coach you – Fit for 2014.

After a short introduction by Dr. Thomas Ditges, founder and senior partner of DITGES PartGmbB, Wolfgang Sommerfeld highlighted in his presentation: Fit in the Brain for Sports and Business the power of positive thoughts as one important source for creative solutions within teams, as well as the negative consequences of pressure and threats for team work.

The experience of top class sport can lead to increasing efficiency and higher level of motivation in business. Wolfgang Sommerfeld worked several years as the coach of the German handball team, winning seven gold and silver medals in European and World Championships.

Team building was also the content of the second topic presented by Prof. Dr. Renate Dendorfer-Ditges and reerring to Works Council Election 2014 – Rules of the Game, Team Player and Red Cards. Every four years between March and May the members of works councils have to be elected in German entities. The next elections are scheduled for 2014. The presentation outlined the legal requirements for such elections as well as the challenges for the team building after the works councils have been constituted.

he BONN FORUM LAW & ECONOMICS will be continued periodically with two events per year combining legal and business topics for clients and all other interested persons.

GGI member firm

DITGES PartGmbB

Rechtsanwälte Wirtschaftsprüfer Steuerberater
Auditing & Accounting, Tax, Legal Bonn, Germany

Prof. Dr. Renate Dendorfer-Ditges E: kanzlei@ditges.de
W: http://www.ditges.de