Online Legal

List of top consulting firms 2012

2011-12-16T07:58:00.000-08:00

Following is a list of the top consulting firms around the world with such details as ranking, company name, website url, headquarters, year founded, approximate number of employees, male to female ratio, and other statistics. Being a top consulting firm do not means always prestige and do not bring quality and values automatically, but clients and job seekers of the consulting profession may be interested by these statistics.

Purpose: To summarize and provide beneficial statistical information about the consulting industry and provide quick access gateway to a list of the top consulting companies and websites.
Serving: Researchers, students, professionals, job seekers in the consulting industry and all who seek information about top consulting companies.

Disclaimer: We are not claiming any rights, responsibilites or ownership pertaining to creating, developing, designing, or programming any of the websites listed on this page. All websites listed on this page are publically available for viewing on the internet.

Rankings: Any ranking information regarding the listings above have been made by 3rd parties, organizations which make their ranking info available on public viewable pages free of charge. For this particular listing we have gathered inforamtion from various sources on the internet, including, cnn.com, vault.com, fortune.com and linkedin.com.

The 2011 Best Firms to Work For (according to Consulting Magazine):

The Best Consulting Firms to Work For 2011

Bain & Company
The Boston Consulting Group
North Highland
Point B
Deloitte Consulting
Slalom Consulting
McKinsey & Company
PwC
Booz Allen Hamilton
Huron Consulting Group
Ernst & Young
Accenture
Crowe Horwath
Monitor
A.T. Kearney

The Best Small Consulting Firms to Work For 2011

Stroud Consulting
Impact Advisors
Cask
Vynamic
Infinitive
Fitzgerald Analytics
Lenati
Jabian Consulting
PeopleFirm
HiSoft (formerly Nouveon)
Plus Consulting
Meridian Compensation Partners
Marakon
SEI
IBB Consulting Group

Rank	Consulting Firms	HQ	Industry	Type	# of employees	Year founded	Med age	Male	Fe- male
1	McKinsey & Company	Greater New York City Area	Management Consulting	Partnership	15000	1926	29	67%	33%
2	The Boston Consulting Group, Inc	Greater Boston Area	Management Consulting	Partnership	6000	1963	28	67%	33%
3	Bain & Company	Greater Boston Area	Management Consulting	Privately Held	10000	1973	28	65%	35%
4	Booz & Company	Washington DC Metro Area	Management Consulting	Privately Held	22000	1914	32	64%	36%
5	Deloitte Consulting LLP	Greater New York City Area	Financial Services	Partnership	168000	-	29	61%	39%
6	Monitor Group	Greater Boston Area	Management Consulting	Privately Held	1500	1983	29	63%	37%
7	PricewaterhouseCoopers LLP	Greater New York City Area	Accounting	Partnership	17500	-	29	59%	41%
8	Mercer LLC	Greater New York City Area	Human Resources	Public	18000	1937	34	51%	49%
9	Ernst & Young LLP	Greater New York City Area	Accounting	Partnership	144000	-	29	59%	41%
10	Oliver Wyman	Greater New York City Area	Management Consulting	Public	1001	-	30	70%	30%
11	Accenture	Greater Chicago Area	Management Consulting	Public	177000	1989	30	67%	33%
12	IBM Global Business Services	Greater New York City Area	Information Technology and Services	Public	300000	1911	34	76%	24%
13	KPMG LLP	Amsterdam Area, Netherlands	Accounting	Partnership	137000	-	30	60%	40%
14	Towers Watson	Greater Philadelphia Area	Management Consulting	Privately Held	6400	1934	34	52%	48%
15	AlixPartners, LLP	Greater Detroit Area	Management Consulting	Privately Held	900	1981	35	77%	23%
16	A.T. Kearney	Greater Chicago Area	Management Consulting	Partnership	2700	1926	30	68%	32%
17	Braxton Consulting	Eurpe & Latin America	Management Consulting	Privately Held	250	1996	31	54%	46%
18	The Parthenon Group	Greater Boston Area	Management Consulting	Privately Held	200	1999	28	62%	38%
19	Towers Watson	-	Financial Services	Public	14000	-	34	53%	47%
20	L.E.K. Consulting	London, UK	Management Consulting	Partnership	900	1983	28	70%	30%
21	FTI Consulting, Inc.	Washington DC Metro Area	Management Consulting	Public	3500	1982	32	71%	29%
22	Alvarez & Marsal	Greater New York City Area	Management Consulting	Privately Held	1600	1983	33	73%	27%
23	NERA Economic Consulting	Greater New York City Area	Management Consulting	Public	600	1961	27	61%	39%
24	Capgemini	Paris Area, France	Information Technology and Services	Privately Held	91000	1967	32	77%	23%
25	Navigant Consulting, Inc.	Greater Chicago Area	Management Consulting	Public	2500	1983	32	62%	38%
26	Huron Consulting Group	Greater Chicago Area	Management Consulting	Public	2000	2002	30	61%	39%
27	Hewitt Associates	Greater Chicago Area	Outsourcing/Offshoring	Public	25000	1940	32	55%	45%
28	Roland Berger Strategy Consultants	-	Management Consulting	Partnership	2100	1967	28	72%	28%
29	ZS Associates	Greater Chicago Area	Management Consulting	Privately Held	1400	1983	27	72%	28%
30	CRA International, Inc.	Greater Boston Area	Management Consulting	Public	800	1965	33	65%	35%
31	Arthur D. Little	Paris Area, France	Management Consulting	Privately Held	1000	-	30	75%	25%
32	Kurt Salmon Associates	Greater Atlanta Area	Management Consulting	Public	700	1935	33	63%	37%
33	LECG	San Francisco Bay Area	Management Consulting	Public	1200	1988	34	69%	31%
34	Gallup Consulting	District of Columbia	Management Consulting	Privately Held	2000	-	27	60%	40%
35	Aon Consulting Worldwide	Greater Chicago Area	Management Consulting	Public	6300	1983	36	52%	48%
36	BraxtonTechnology	Europe, Asia & Latin America	Technology Consulting & Services	Privately Held	219	2005	26	74%	26%
37	Cornerstone Research	San Francisco Bay Area	Legal Services	Privately Held	201	1989	27	61%	39%
38	Corporate Executive Board	Washington DC Metro Area	Management Consulting	Public	2000	1979	28	50%	50%
39	Hay Group	Greater Philadelphia Area	Management Consulting	Privately Held	2600	1943	32	47%	53%
40	Analysis Group, Inc.	Greater Boston Area	Management Consulting	Privately Held	500	1981	30	62%	38%
41	Milliman, Inc	Greater Seattle Area	Insurance	Privately Held	2000	1947	35	62%	38%
42	Zolfo Cooper	Greater New York City Area	Financial Services	Privately Held	75	-	31	67%	33%
43	Mars & Co	-	-	-	-	1979	-	-	-
44	The Advisory Board Company	Washington DC Metro Area	Hospital & Health Care	Public	1000	1979	28	43%	57%
45	Putnam Associates	Greater Boston Area	Management Consulting	Privately Held	50	1988	26	64%	36%
46	First Manhattan Consulting Group	Greater New York City Area	Management Consulting	Privately Held	51	1980	26	76%	24%
47	IMS Health Incorporated	Greater Philadelphia Area	Pharmaceuticals	Public	10000	1954	34	57%	43%
48	Buck Consultants	Greater New York City Area	Human Resources	Public	1900	1916	38	55%	45%
49	Giuliani Partners LLC	Greater New York City Area	Management Consulting	Privately Held	11	2002	45	79%	21%
50	Archstone Consulting	Greater New York City Area	Management Consulting	Privately Held	250	2003	34	63%	37%

Social Ties Driving Internationalization for SMEs from Azores Islands, Portugal

2011-03-14T08:22:00.001-07:00

Social Ties Driving Internationalization for SMEs from Azores Islands, Portugal

A recent study of a small fish exporter from the Azores Islands, an autonomous Portuguese archipelago in the North Atlantic, some 900 miles from the European mainland, offers useful insights on the key drivers of internationalization for companies based on small islands. It illustrates the critical role of social ties in guiding and supporting island-based SMEs towards successful internationalization. Often challenged by „isolation‟ and distance from the core economies, and by dis-economies of scale and high transportation cost, these SMEs from small islands tend to exhibit relatively low international involvement. The resultant economic weakness associated with such islands often fuels emigration. In the case of the small fish exporter from the Azores Islands investigated by Camara and Simeos (2008), this meant access to major emigrant communities in Canada (British Columbia and Quebec) and the United States (California, Hawaii, Massachusetts, and Rhode Island) among others. There is evidence, however, that some island-based SMEs leverage the network of family and social ties existing between those remaining on the islands and those that emigrated to compete in international markets.
Source: Camara and Simeos (2008)

Growth Motives.

2011-03-14T05:45:00.001-07:00

Growth Motives.

Growth opportunities associated with international markets were identified as a key driver of firm internationalization in several recent studies. Orser et al. (2008), for example, reports say that after allowing for the impacts of firm size and sector, Canadian legal firms whose owners had expressed growth intentions were more than twice as likely to export, than those whose owners did not indicate growth ambitions. Firms‟ overseas venturing decision also seems to be motivated by a need for business growth, profits, an increased market size, a stronger market position, and to reduce dependence on a single or smaller number of markets. The possibility of growth in other markets and increased profit opportunities from international expansion were highlighted as key stimuli for exporting among the Australian, British, Spanish, Swedish, and US firms investigated in recent studies.

European Union Direct Taxes

2011-02-09T08:01:00.000-08:00

Permanent Establishment is a vital concept in international taxation. While for direct taxes, it is mainly defined by the OECD Model Convention, the European VAT Directive and its implementing Regulation provide an EU-wide approach for VAT.
Difficulties arise as terminology and definitions in indirect and direct tax diverge. Moreover, countries have implemented and interpreted the EU and OECD rules in a different way, impacting on issues like cross-border reorganisations, transfer pricing, taxation of dividends and interest and royalties, tax residence, temporary and permanent transfer of assets, place of supply and VAT liability.
In both direct and indirect tax, the concept of Permanent Establishment has undergone very recent changes: The 2010 changes to the OECD Model Convention and Commentary, and in particular the new Art. 7, will be adopted in national law, as speakers from the Netherlands and Germany will report. The effect of the new definition on treaties with other countries will also be considered.
Some of this topic is addressed in the new book "European Union Direct Taxes", by the International Tax Professor Salvador Trinxet Llorca.
In indirect tax, the current more important issue is the practical consequences of the adoption of the Regulation implementing the EU VAT Directive in January 2011.

Internationalization

2010-12-20T04:31:00.001-08:00

internationalization and international entrepreneurship among small and medium-sized enterprises (SMEs) has remained a topic of considerable contemporary relevance, principally owing to the observed growth effects of cross-border venturing, and the demonstrated capacity of SMEs to drive economic development at national, regional, and global levels (European Commission, 2007). This realisation was at the heart of the 2007 OECD-APEC study on Removing Barriers to SME Access to International Markets, which provided general findings on the major barriers to SME internationalization as perceived by SMEs and policymakers in OECD and APEC member economies.1 The need to obtain a greater depth of understanding and an updated view of the issues raised by the OECD-APEC study provided a raison d'être for this follow-up project. Other value adding features include the additional focus on motivations for SME internationalization ; the coverage of recently available documentation from economies involved in the OECD enlargement (Chile, Estonia, Israel, Russia, and Slovenia) and enhanced engagement process (Brazil, China, India, Indonesia, and South Africa); and the sub-national and sectoral insights offered on SME internationalization barriers, motivations and support programs.

OCDE prerrogatives for internationalisation on SME

2010-12-16T04:43:00.001-08:00

i. To analyse in-depth the most significant barriers to SME

internationalisation identified from the 2007 OECD-APEC sponsored research on this theme, with a view to uncovering new insights into the nature of these top barriers;

ii. To review recent work pertaining to factors that drive or motivate the internationalisation of SMEs; and

iii. To develop a deeper understanding of the current programs for SME internationalisation, particularly the specific measures aimed at addressing the top barriers identified.

To provide an updated appreciation of pertinent aspects of SME internationalisation, the report reviewed the post OECD-APEC survey evidence on the top barriers, drivers and support programs across OECD and APEC member economies and other economies involved in the OECD enlargement and enhanced engagement processes. This has yielded important longitudinal insights, thereby indicating that support programs are appropriately focused on the most resilient and enduring of the factors affecting SME internationalisation.

To ensure a greater depth of understanding on SME internationalisation barriers, this study focused on the top four barriers identified by the OECD-APEC study as being by far and away the most serious impediments to SME internationalisation (see Table 1). These include 1) Shortage of working capital to finance exports; 2) Identifying foreign business opportunities; 3) Limited information to locate/analyse markets; and 4) Inability to contact potential overseas customers. A fifth barrier, „lack of managerial time, skills and knowledge‟, is additionally examined. The reasoning is threefold: one, this reflects the importance of this barrier in the Member Economy survey (see Table 2); two, the consistently highlighted primacy of managerial factors in previous relevant global surveys; and three, the widely acknowledged importance of skilled human resources in all areas of economic activity, including market innovation.

An opinion from one of our readers commenting the news from Yahoo

2010-12-09T04:13:00.001-08:00

What difference would it make to our standard of living if EVERYONE paid an increase in taxes?. Several people are tired of the argument over tax the rich but not the middle class. Social Security recipients have given up the COLA for two years. Who else in the country has already given up that much? Why not let the Bush tax cuts expire for everyone? Returning taxes to the Clinton era levels might return us to the Clinton era prosperity levels. It is worth a try since nothing we have done since the Clinton era has worked. America has been in decline since he left office.

Another blog where you'll find International Tax information is International Tax Spain

Proposta da Comissão

2010-12-01T04:33:00.001-08:00

O objectivo da proposta consiste em estabelecer um procedimento que permita à Comunidade avaliar se existe um interesse comunitário suficiente para concluir acordos bilaterais propostos com países terceiros e, na ausência do mesmo, autorizar os Estados-Membros a concluírem estes acordos com países terceiros em certos domínios da cooperação judiciária em materia civil e comercial que são da competência exclusiva da Comunidade.

Uma vez que a autorização concedida aos Estados-Membros constitui uma derrogação à regra segundo a qual a Comunidade tem competência exclusiva para concluir acordos internacionais sobre estas matérias, o procedimento deve ser considerado uma medida excepcional e ter um âmbito de aplicação e uma duração limitados.

Propõe-se limitar o procedimento em causa às questões sectoriais relacionadas com as matérias matrimoniais, a responsabilidade parental e de obrigações de alimentos, por um lado, e com a lei aplicável às obrigações contratuais e extracontratuais, por outro. A proposta em anexo diz respeito ao segundo domínio.

A Comissão propõe as garantias a seguir descritas com o objectivo de preservar o acervo comunitário, incluindo a integridade do sistema comunitário no domínio em causa.

O procedimento baseia-se na notificação prévia do projecto de acordo pelos Estados-Membros que pretendem obter uma autorização para renegociar e concluir um acordó com um país terceiro com base em condições específicas a avaliar caso a caso.

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Behavioral marketing by International Lawyers

2010-12-01T04:27:00.001-08:00

EXTERNAL AND INTERNAL COMMUNICATIONS BELONG TOGETHER

When Starting a business behavioral marketing also fosters a worldwide exchange of information internally as experienced by International Lawyers. Knowledge of global events and issues is only useful to customers if it is available around the world. When it comes to efficient marketing, Freshfields combines specialization with the advantages inherent in a large-scale company. For example, one of its objectives is to represent clients who were acquired in the finance or corporate sectors in the labor law area, too. Cross-selling is also used as a marketing support tool—if cases span sectors, Freshfields will offer a price discount. Clear positioning is necessary and becomes all the more difficult as more companies seek it. And this dictum applies to Freshfields and its competitors as it does to every service industry. "There's no sense in sprucing up a commercial if you're putting out the same message as your competitors," says Kotler. In other words, "focus" will be the buzzword in future, particularly within the service sector. Looking at seemingly straightforward services, two-way communications (preferably demand-oriented) with the customer are becoming more significant, and that extends all the way to complaint management. The Pizza Hut franchise chain, for example, prints its hotline number on every pizza box to take calls from unsatisfied customers. The franchise manager then has 48 hours to resolve the problem. The luxury-hotel chain Hyatt is also known for its fast response times to customer complaints— you can even send them to management using the in-room television and its remote control.

DOES DEMARKETING CREATE A NEW SENSE OF TRUST?

For Kotler, such trust-enhancing measures are just a small part of the imminent marketing revolution. "We want to develop methods that will actually reduce an otherwise continually increasing demand," is Kotler's position, which is surprising from a marketing perspective. The essence of this approach is to perceive "demarketing" as a source of trust. According to this notion, keeping certain types of customers away from your product may actually be a positive marketing approach. One might be inclined to think that this attitude is naïve. But that's not necessarily so, says Kotler, although it does have to be grasped properly in-house. "First, one has to identify values. And then one has to hire people who believe in these values and embody them." Crises always represent crucial tests for Kotler's value-based marketing. For example, in difficult times, how do companies deal with clients that are late with payments? John Deere, the US-based agricultural equipment manufacturer, may serve as a role model, he says. "John Deere helped farmers, while rival International Harvester unceremoniously seized its machines." John Deere's level of generosity is rarely found among service providers, even though times of crisis are a perfect opportunity to create new customer loyalty. Kotler recommends to banks and insurance companies in particular that they fully understand the acute problems some of their customers may be facing. He also thinks that their advertising requires a different tone. "The financial crisis compelled many service providers to rethink their marketing and advertising strategies." Solidarity is the new mantra, he says. For example, Morgan Stanley's European advertisements promote their high equity ratio compared with other banks. "They're probably doing the right thing," Kotler explains "Especially if other banks have to address some rather uncomfortable questions on this point."

IT'S EASIER TO SEPARATE THE GOOD GUYS FROM THE BAD GUYS

These questions are certainly being asked, not just in the industry but publicly as well when starting a business. The growth of social media makes companies an ongoing subject of debate. Internet portals where consumers can discuss their experiences make it "easy these days to differentiate the good guys from the bad guys." From a marketing perspective, turbulent times are actually good times, according to the tenor of Kotler's new book Chaotics. "Ryanair is an example that says a few things about seizing an opportunity that arose from the crisis," he states. During the crisis, Ryanair ran a massive advertising campaign and thereby tapped customers' magnified price consciousness. The outcome was a substantial gain in market share.

KOTLER'S "KEY" POINTERS FOR SERVICE MARKETING MANAGERS. "QUALITY IS KING"

Nowadays, customers have precise expectations of services they utilize. Social media platforms such as Facebook increase transparency, which means customers now define quality.

"BUILDING THE MARKETING ORGANIZATION"

Building up long-term customer relationships is more difficult today than ever before. Customers are fickle. Marketing must quickly adjust to new situations and therefore needs to have, first and foremost, a very flexible organization.

"THE FIRM CAN'T BE ALL THINGS TO ALL PEOPLE"

Opportunities for service companies to differentiate themselves from one another are on the rise. They can be socially oriented or maintain higher environmental standards than their competitors. It's all about accessibility. The physical presence remains irreplaceable. For example, online banks in Europe are currently setting up "finance lounges" in major cities.

More about the International Lawyers that you will need to start a business on International Lawyers to start a business

“All muscle and no fat”

2010-11-29T05:01:00.001-08:00

"All muscle and no fat"

Marketing is becoming more important in the professional services industry and the legal consultants . But how does one market non-visible products such as the International Lawyers? According to expert Philip Kotler an international lawyer, you use credibility. Revealing a previously unseen socially conscious side, he recommends combining sustainability and smart communications.

The Dow Jones Sustainability Indexes are the conscience of the investment industry. Companies identified as "supersector leaders" not only receive the blessing of critical customers, they will also be among the favored billion-euro funds that focus on ethical conduct. As a result, sustainability has become a firm part of the marketing strategy of global companies. This used to apply especially to manufacturers of consumer goods—until now, at least.

Now, high-end service providers might want to rethink the situation. At least, that's what marketing guru Philip Kotler is urging. In a meeting with think:act, he recommends that service companies change their way of thinking because what they really do is deliver trust. However, they first need to earn that trust via responsible conduct. Kotler is at the forefront of the reform movement, even though he previously represented more traditional marketing approaches. In his book Corporate Social Responsibility, he examines how companies perceive the obligation of giving back to society. When American Express promotes education and tourism projects in developing countries, or when IBM participates in social issues, these actions contribute to the companies' authenticity, he says. "It's always better if a company draws attention to itself through its philanthropic projects," rather than by means of traditional product advertising. In principle, long-term service marketing begins with a company's core processes. The public will see right through any "greenwash."

Consumers and customers are no longer passive participants in the marketing process: people will find out if a European logistics company is marketing itself as green while at the same time running poorly maintained, pollution-spewing trucks in its transportation operations. On the other hand, a substantial social commitment offers more than just external gains. It makes companies smarter by creating dialogue platforms. They increase inhouse expertise and ensure that management understands not just financial markets but also social trends. However, the desire to hold a long-term position is crucial, especially in this competition for dialogue platforms. And this is where marketing, which often pursues short-term effects, needs to rethink its game, as exemplified by promoting social initiatives. Kotler warns about reducing socially oriented commitments too quickly in turbulent times: "Management does save money in the short term, but will lose it again in the long term once the situation improves." Companies that abandoned community organizations when these needed support most desperately will see interest groups and customers losing trust in them. Kotler is convinced that services require at least as much marketing substance as tangible products. In fact, the latter are fairly easy to advertise. Things get a little more complicated when it comes to corporate consulting or internationally active commercial law firms, like the Lovells and Linklaters of the world. For them, close personal relations with clients are crucial. This skill can be acquired and it goes by the name of "behavioral marketing." Freshfields Bruckhaus Deringer is one law firm that demonstrates how the concept works in practice. It draws clients by having teams that specialize in various industry sectors. Team members must not only be right up-to-date with the latest legal news developments, they must also be proactive in keeping the client informed. Thus, in a broader sense, every good international attorney also serves as the client's counsel.

Expatriates Moving to countries which are not prescribed territories for expatriates

2010-11-26T03:19:00.001-08:00

Expatriates can move to countries which are not prescribed territories

According to the savings directive, you do not need to make a report if a UK passport holder moves permanently to a country which is not a prescribed territory, although the payment may be reportable under S17 or S18.

However, if an individual falling under the general rules and living in the UK (or in another Member State) and who has a passport or ID card issued by a Member State other than the UK moves to a country not covered by the scheme and does not produce a certificate of residence for tax purposes from that country's authorities, a report will be required. You will need to update your records to include all the necessary information.

This is because the country of residence for reporting purposes will be the Member State which issued the individual's passport or identity card.

For example, a paying agent makes a savings income payment to a Spanish passport holder living in the UK with whom he has a contractual relationship entered into on or after 1 January 2004. The individual moves to Iceland, but does not obtain a certificate of tax residence from the Icelandic authorities.

The country of residence for reporting purposes is now Spain. Therefore the paying agent will need to obtain and verify the individual's name and address and either the individual's TIN or date and place of birth.

When an individual moves during the year, there may be more than one country of residence and address for the same reporting period.

As long as you report consistently, you may report either the address and country of residence at the time the savings income payment is made, or the address and country of residence at the end of the reporting year (5 April).

More about expatriates on expatriados

Moving from one prescribed territory to another

2010-11-25T02:35:00.001-08:00

Moving from one prescribed territory to another

An International Lawyer is intended to study all the European Directives. According to the Savings Directive, "If an individual, who is currently reportable because they live in one prescribed territory, moves to a different prescribed territory, you may need to update the address and country of residence information. If the individual moves to a Member State, you may also need to obtain and verify a new TIN, since the information you hold may be out of date (because the TIN to be reported is the TIN issued by the Member State in which the individual resides). If you cannot obtain the new TIN you should obtain, verify and report the date and place of birth.

For example, a UK paying agent makes a savings income payment to a Spanish passport holder whose permanent address is in France. The paying agent has a contractual relationship made on or after 1 January 2004 with the individual, who moves permanently to Germany.

The paying agent currently reports the payee's name, address, country of residence (France) and the French TIN. If the payee moves to Germany, the paying agent will need to report the payee's name, new address and country of residence (now Germany). Since it is a relationship made on or after 1 January 2004 he will also – if Germany is now the country of tax residence - need to obtain and verify the new German TIN or, if it is not available, the date and place of birth."

You can find out about an international lawyer on International Lawyer

Moving from the UK to a prescribed territory

2010-11-24T03:10:00.001-08:00

Moving from the UK to a prescribed territory

According to the Savings Directive, "If a UK individual changes address to a prescribed territory you will need to report on the basis of the new address. This may mean you need to obtain additional information and/or update your system.

For example, a UK paying agent pays savings income to an individual who lives in the UK. This is not reportable under the scheme. He has a contractual relationship made on or after 1 January 2004 with the individual.

If the payee moves to Spain, they will become reportable and the paying agent will need to update his records to fulfill his obligations under the scheme. Since he has a relationship which began on or after 1 January 2004 with the individual, he will also need to verify the name and address in addition to obtaining and verifying the TIN or the date and place of birth.

Where both the identity and UK address were verified to KYC standards, and the contractual relationship began after 1 January 2004, subsequent changes can be 'self certified' in accordance with paragraph 183.

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Collective investment funds: income realised at sale or redemption of fund units

2010-11-23T02:46:00.001-08:00

Guidance Notes vs. 5 - draft vs. 8 - cleaned up version

According to the Savings Directive, "Savings income also arises when units or shares in a collective investment fund are sold to a paying agent (or a receiving agent) or redeemed by the fund. This is analogous to the inclusion of accrued interest in the sale or redemption price of a security (see paragraphs 97 to 103 above).

Savings income only arises under this heading if the fund has invested more than 25% of its assets directly or indirectly (via other collective investment funds or residual entities) in money debts. Up to and including 31 December 2010 the figure was 40% of its assets. This applies to all funds and does not depend on any requirements of the territory in which the fund is established.

A In determining whether a sale or redemption of units or shares in a collective investment fund is reportable under these arrangements the information described at paragraphs 121 – 123 below may be used and relied upon. The paragraphs 118B – below provide additional guidance for particular circumstances if need be.

Where a fund has historically invested more than 40% of its assets in money debts it is unlikely to be affected by the reduction of the percentage to 25% from 1 January 2011 – by definition income realised at sale or redemption will be reportable throughout.

However if a fund under its rules or instrument of incorporation (see 121 below) or actual composition of assets (see 122 below) operates so as not to pass the 40% threshold, it will need to ensure, as soon as practical, after 1 January 2011 that its asset holding in money debts (including holdings of grandfathered bonds) is reduced so as not to pass the 25% threshold if the intention is that it continues to operate so that sales/redemptions will not be reportable under these regulations.

Providing a fund does so reduce its holdings in money debts sales/redemptions will not be reportable as savings income throughout.

In this context a fund will be regarded as having acted as soon as practical if by the start of the first accounting period commencing on or after 1 January 2011 or the 30 April 2011, whichever is the later, its assets in money debts do not pass the lower threshold.

This period should facilitate the necessary changes to be made and enable the fund to operate as it intended.

If the fund has met the old threshold under its rules but decides not to meet the new lower threshold then savings income will arise on a sale/redemption once its assets in money debts pass the 25% threshold."

Guidance Notes vs. 5 - draft vs. 8 - cleaned up version

More information about International Tax on International Tax

REVERSE TAKEOVERS IN THE PLUS MARKET (LONDON)

2010-11-19T00:35:00.001-08:00

Greener House Investments Plc also recently completed a reverse takeover, acquiring Fresh T Limited, a privately owned company specialising in Software as a Service.

Following the reverse takeover, the enlarged group was renamed

FreshTL Plc was readmitted to the PLUS markets.

Hanseatic & Baltic Properties Plc

was suspended from the PLUS markets in January 2010 in anticipation of a reverse takeover of United Sino, a Libyan property development company. However, the deal was terminated in April citing "Sino were unable to guarantee raising sufficient funds for us to satisfy ourselves that the enlarged group would have had sufficient working capital to carry out the projects." Hanseatic & Baltic Properties Plc has been restored to trading on PLUS.

Award International Holdings plc recently completed a reverse takeover, acquiring a full service digital marketing specialist, Fuse 8, for £5m which will be satisfied by the issue of 10,215,000 consideration shares.

The directors had examined many acquisition opportunities since Award became an investment company and believe that Fuse 8 presented an exciting prospect for existing Shareholders.

Following the reverse takeover, the enlarged company was renamed Fuse 8 Plc and listed on the AIM Market.

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Clean or dirty Cash Shells in the Plus Market Exchange

2010-11-18T03:43:00.000-08:00

Cash shells can be "clean‟ purpose built with a fresh pool of capital with the aim of finding a project seeking capital to acquire.

Investors in the shell are backing the board to spend their cash wisely and target profitable companies or companies that can achieve capital growth, even though they have not yet secured a deal.

Alternatively, they can be "dirty‟ companies with a stock market quote and some funds whose previous business failed and have undergone a restructuring and a formal arrangement to eliminate all the company‟ old liabilities.

More about the Plus Market Exchange on:

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Private Foundation in Guarnsey

2010-11-17T01:22:00.000-08:00

Background

Much of Guernsey's economic success over past decades
has been largely due to its adaptability and flexibility to react
to changing market situations and conditions. This
adaptability is no better illustrated than by the Island's
willingness to amend and review legislation to ensure that it
retains its position within the increasingly competitive
market place of international finance and over recent years
there have been many examples of this.

Following the revision of the Guernsey Trust Law - which
was approved by the Guernsey parliament in July this year
and now awaits approval by Privy Counsel - the Island is
now planning to introduce legislation to allow the
establishment of Foundations. This innovation will add a
useful new tool to the Island's current financial product mix
and will help ensure that Guernsey remains able to offer a
highly flexible spectrum of financial services to its global
client base.

The Foundation

Foundations have been created under the laws of other
jurisdictions from as early as 1926 (Liechtenstein). More
recently Panama introduced legislation in 1995, Netherlands
Antilles in 1998 and the Bahamas in 2004. Foundations over
this period have become increasingly popular across the
globe but particularly in civil law jurisdictions where the
concept of the Anglo-Saxon Trust is less well known and not
always wholly understood. In certain situations Foundations
can offer a viable alternative to the trust for commercial
structures, estate planning and for charitable purposes.
Whilst there is no single definition of a Foundation, there are
a number of common features and some interesting
comparisons to be made with trusts and companies alike.

Unlike a trust, a Foundation is a distinct legal entity and has
its own legal personality. It can hold assets, sue (or be sued)
in its own name, may enter into agreements with third
parties but unlike a company it has no shareholders. Since
some Foundations are established for charitable purposes,
they may or may not have beneficiaries.

A Foundation is formed by a Founder (either an individual or
corporate body) who provides the assets to be administered
by the Foundation under contractual rather than fiduciary
principles – giving a degree of comfort to those clients
unfamiliar with equitable principles. Beneficiaries of a
Foundation therefore have contractual rights rather than
proprietary rights in its assets. A key attraction is the ability
for the Foundation to reserve powers to its Founder. A
Founder may retain more control than is usual with a Settlor
of a trust. Commonly reserved powers include those relating
to such issues as investment strategy, the appointment and
removal of beneficiaries or even the power to revoke the
Foundation.

The Potential Guernsey Foundation

It is proposed that a Guernsey Foundation would be
established by Charter and run by a Council responsible for
fulfilling the Foundation's purpose as defined in the Charter
– which would also include the Foundation's name, details
of all Council members its registered office (which would be
in Guernsey) and the Foundation's purpose.
tself may be quite generic - for example "estate planning", or
may be something quite specific. It is envisaged that at least
one member of the Council will be a corporate body. The
Foundation would be entered on the public register however
details of the beneficiaries (if any) would remain confidential
as with a Trust subject only to the pre-existing rules
regarding disclosure in proper cases.

The provision of Council members or administrative services
to Foundations will be, a regulated activity as are trustee
services at present ensuring that the interests of clients and
the reputation of the Bailiwick is upheld.

Over and above the Charter, there will normally be a set of
Rules governing the mode of operation for the Council -
whose members would be subject to duties similar to those
of company directors. Unlike the Charter the Rules would be
a private document and not on the public registry.

It is not proposed that a Guernsey Foundation will be
restricted in terms of the type of assets it can hold. Therefore
whilst it is not envisaged that they will be used for purely
commercial purposes, they will potentially be able to hold
shares in a company carrying on commercial activities.
Filing requirements are likely to be limited to changes in
registered office and Council members and changes to the
Charter all of which would need to be registered immediately
the changes occur. If this is the case it's unlikely that an
annual return be required. The filing of audited financial
statements would be subject to the same exemptions
applicable to Guernsey companies meaning many of them
would fall outside the audit requirement. This will ensure that
pricing can remain competitive.

It is also proposed that the tax treatment of Foundations be
similar to that of Trusts with Guernsey trustees.
A Foundation can also have an Adviser whose role would be
set out in the Foundation Charter and Rules. This is largely
similar to the role of Protector within a Trust structure both
having powers such as to appoint or remove Council
members and beneficiaries, or the Adviser's consent may be
required before the Council carries out certain acts.
It should also be possible for a Guernsey Foundation to
migrate to another jurisdiction if so required and equally for
a Foundation established elsewhere to migrate into the
Island, a long as it fulfils requirements under the Guernsey
legislative framework.

An interesting possibility is to establish structures using both
Foundations and Trusts. Private Trust Companies ("PTCs")
are very much in vogue. These are companies established
for the sole purpose of acting as trustee for one trust or, say,
one family. One issue that often concerns advisers is as to
the identity of those who will own the PTC. Often a purpose
trust is established to hold the shares in the PTC but as
Foundations need not have any beneficiaries it is possible
that they will be used as trustees themselves; a Private Trust
Foundation?

Conclusion
The introduction of Guernsey Foundations will offer the
Island's clients an excellent alternative structure assisting
with wealth management and will provide further choice and
flexibility to the Island's fiduciary sector.
The Foundation combines the flexibility of a trust with the
greater degree of transparency of a company. Given the
ability of a Founder to retain a certain amount of control and
the existing market demand for the Foundation structure
from civil law jurisdictions in particular, the Foundation can
only enhance the Island's competitive position in the market
place.

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Hybrid entities and reverse hybrid entities

2010-11-16T03:34:00.001-08:00

International tax planners often refer to "hybrid entities" and "reverse hybrid entities."

From a U.S. tax perspective, a hybrid entity is an entity that is "fiscally transparent" for U.S. tax purposes but not fiscally transparent for foreign tax purposes. In general, an entity is fiscally transparent if the entity's current year profits are currently taxable to the owners of the entity, regardless of whether the entity made any distributions to its owners during that year.

Partnerships are typically fiscally transparent entities. Corporations are typically not fiscally transparent entities. Limited liability companies and various types of foreign entities may or may not be fiscally transparent.

Flexibility in international tax planning may be accomplished by the use of a foreign entity that is a corporation in its country of origin, but has the ability to check the box and elect its classification under Federal tax rules. This article presents a primer on establishing and planning for the use of such "hybrid" entities.

Final entity classification regulations--the "check-the-box" (CTB) rules issued in December 1996(1)--allow taxpayers to elect to treat most business entities (including foreign business entities) for Federal tax purposes as corporations, partnerships or (if the entity has one member) disregarded entities. While specified foreign business entities are excluded from the elective system and are treated per se as corporations, they are generally limited to publicly traded-type entities (e.g., U.K. PLCs, German AGs and French SAs; a list is contained in Regs. Sec. 301.7701-2(b)(8)). Despite the apparent restrictions imposed by the per se list, typically, at least one entity in any given country is viewed as a corporation under local law, but is eligible to check the box (e.g., the U.K. Limited Company, German GmbH and French SARL). Further, Regs. Sec. 301.7701-2(d)(1) grandfathered certain business entities on the per se list in existence on May 8, 1996, allowing them to retain their previous partnership or branch status. The CTB elective regime replaced the former four-factor approach under Regs. Sec. 301.7701-2 for classifying entities, which was cumbersome to apply and sometimes generated uncertainties, particularly for foreign entities.

The final CTB regulations ushered in a new era of flexibility in international tax planning for U.S. persons. However, IRS actions since the issuance of the final CTB regulations have eroded some of the rules' flexibility. This article will discuss establishing a foreign hybrid under the new CTB regime and planning opportunities.

For Federal tax purposes, taxpayers may elect to treat a foreign business entity as either a corporation or as a flowthrough entity, regardless of the foreign country's classification, if the entity type is not on the per se list. (An entity type on the list is automatically treated as a corporation for Federal tax purposes). Thus, a foreign entity taxable as a corporation in its country of incorporation can choose to be treated as a partnership or a branch for Federal tax purposes; such an entity is generally known as a "hybrid" Conversely, an entity classified as a partnership (or other type of flowthrough entity) in its country of formation or residence can choose to be treated as a corporation for Federal tax purposes; such an entity is generally known as a "reverse hybrid."

A reverse hybrid entity is the "reverse" of a hybrid entity in that the entity is fiscally transparent for foreign tax purposes but not fiscally transparent for U.S. tax purposes. Entities that are treated the same for U.S. and foreign tax purposes are not "hybrid" entities.

The use of domestic reverse hybrids in cross-border financing continues despite the issuance by the Internal Revenue Service (IRS) of regulations designed to shut down abuses in the area. These devices, if structured correctly, may enable taxpayers to enjoy double-dip tax benefits with respect to interest expense and reduced withholding under US income tax treaties.

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International Tax and Legal in South America

2009-01-12T19:58:00.000-08:00

The case of Argentina

Resident individuals may have four categories of income in Argentina: (a) first category: income derived from real estate (i.e. rental of real estate); (b) second category: income derived from capital investments (i.e. interest, royalties, dividends, etc.); (c) third category: income derived from carrying out an economic activity (i.e. sole proprietorship); and (d) fourth category: compensation for services rendered as an employee (i.e. remuneration, salaries) or as an independent professional (i.e. fees).

Profits obtained by Argentine entities (such as corporations, partnerships, trusts, etc.) are included in the third category. The ITL has a comprehensive domestic regime for dealing with FX fluctuations in the computation of the cost of property and services and the measurement of revenue and income in the third category and sometimes it is extended to the other categories.

Section 68 of the ITL and its decree regulate the tax treatment of FX for the third category. All transactions (such as commission, purchase and sale of merchandise or other traded goods) must be valued in Argentine currency at the exchange rate provided by the BCRA and must be recorded for tax purposes as follows: (a) for cash transactions, at the exchange rate effectively paid; and (b) for financed transactions, at the exchange rate of the day of entry, in the case of purchases, or at the exchange rate of the day of leaving, in the case of sale of merchandise or other traded goods.

The exchange differences that can be computed for income tax purposes are determined by: (a) the method of yearly revaluation of unpaid balances;12 and
(b) by the exchange differences generated between the last valuation and the total or partial payment of balances (final difference).13 The exchange differences to be included in the tax balance are those arising from transactions covered by the tax and those arising from the cancellation of credits obtained to finance them. The exchange differences generated by the entry of foreign currency into the country, or by the disposal of foreign currency by any means, arising from the above-mentioned transactions and cancellations, are considered to be Argentine source income.

In general, exchange differences are not a part of the cost of the assets; on the other hand, they have a direct bearing on the results and are comparable to financial charges. Negative exchange rates have a similar tax treatment to financial results.

FX losses arising from the conversion of a debt into another currency are not deductible, except when the debt is paid or if it is renewed. The purpose of this rule is to avoid transactions by taxpayers solely to generate currency gains or losses. It has been argued that the FX arising from the change of the currency of a debt should be allowed if the transaction is real and not fake.14 In a recent case, Los Acollarados,15 an Argentine company received a capital contribution in pesos. The company then decided that the contribution would not be converted into shares and would be reimbursed in US dollars. The Argentine company deducted the FX loss arising from the conversion of the debt into US dollars. The Tax Court denied the deduction.

The Tax Court decision was based on the fact that Argentina's income tax regulations16 establish that FX gains and losses should only be considered for income tax calculation when they originate in taxable transactions. The irrevocable contributions refund is not a taxable transaction, it is only the consequence of the company's equity reduction, especially given the fact that the firm had never considered the transaction as a loan (no interest was accrued), and it was decided to modify the original status only after the collapse of the Argentine economy in 2001 (devaluation) (substance over form principle applied).

Online Legal

2004-08-12T04:56:00.000-07:00

Online Legal

An interesting site about Online Legal is http://www.online-legal.biz