Lost Worlds http://lost-worlds.com/ Fri, 11 Jun 2021 18:23:14 +0000 en-US hourly 1 https://wordpress.org/?v=5.7.2 https://lost-worlds.com/wp-content/uploads/2021/05/cropped-icon-32x32.png Lost Worlds http://lost-worlds.com/ 32 32 Global minimum tax: questions for global tax reform https://lost-worlds.com/global-minimum-tax-questions-for-global-tax-reform/ https://lost-worlds.com/global-minimum-tax-questions-for-global-tax-reform/#respond Fri, 11 Jun 2021 18:18:12 +0000 https://lost-worlds.com/global-minimum-tax-questions-for-global-tax-reform/

There has been some confusion over how parts of the recent G7 agreement on new tax rules for multinational companies might work. The new policies would target the largest and most profitable multinationals and introduce a global minimum tax.

The G7 deal is the subject of subsequent debate and agreement in the G20 and in more than 130 countries around the world. As the debates continue, it is important to understand the nuances of what is being discussed.

First of all, a question on the income and profitability thresholds: which companies are present and which are not? Will some large companies be cut regardless of their profitability? Second, some question the exclusions and whether countries will continue to grant tax preferences such as patent boxes under the global minimum tax or whether some countries would be excluded altogether.

On both issues, there are a lot of unanswered questions, but it’s worth exploring what has been discussed so far and how these issues might be resolved.

Part of the debate over global tax reform, “pillar 1,” would change the rules about where the biggest and most profitable companies pay taxes. the G7 press release said the targeted companies would pay taxes in countries where they make sales on at least 20 percent of profits exceeding a 10 percent profit margin.

For this to work, you need a definition of “the biggest” and “the most profitable”. If a business is “big” but does not have a very high profit margin, it may not have to comply with the new system. There are big companies (one in particular) that politicians have identified as one of those who must comply with the new rules.

It comes down to the question of how a business that might not meet the “profitable” metric would be held to the new rules. This is where what is called “segmentation” comes in.

For example, if you have a large multinational company that is a conglomerate with several lines of business, then perhaps the most profitable lines of business would be grouped into pillar 1. Part of the company could be piloted. by valuable software and have a 20 percent profit margin while other parts of the business are in manufacturing and distribution and only earn a 5 percent profit margin.

If, by itself, the software business met both the “big” and “profitable” thresholds for Pillar 1, then the software part of the business might have to adhere to the new rules while the less profitable parts of the business. manufacturing and distribution of the business would not.

The challenge for policy makers is how to define the dividing lines between industries. It is not too hard to imagine the tax authorities gerrymanding companies in the most beneficial way under the rules of the first pillar.

But there’s probably an easier (and less political) way to do it. Large corporations already provide their audited financial statements to shareholders. These statements are issued in accordance with multiple rules and regulations and are intended to reflect the business and economic realities of a large multinational corporation. Companies with multiple lines of business are already reporting profits by segment, so decision makers wouldn’t necessarily need to design something from scratch.

While it does not make sense for a policy to be designed with one (or more) specific companies in mind, segmentation based on financial statements makes sense in a Pillar 1 proposal that is already complex.

Without segmentation, a company with high profit margins could be incentivized to dilute its profitability by acquiring less profitable businesses. Segmentation offers a way to prevent this type of merger activity to avoid pillar 1.

Segmentation is not a new idea. Several pages have been devoted to segmentation in a policy plan published last fall. However, the overall approach to this plan was incredibly complex, and a lot likely changed as policymakers worked on a deal.

Basing carve-ins on something like financial reporting to shareholders should avoid some of the more difficult political and complex questions. It might not be a perfect solution, but like Richard Collier (one of the designers of Pillar 1) recently declared, “In pillar 1, nothing is ever easy.

The other big question that has received a lot of attention is whether there will be any exceptions to the global minimum tax, or “pillar 2”. As with the focus on a business for pillar 1, questions were asked about A country on the overall minimum tax.

Like Pillar 1 and segmentation, the idea of ​​waiving the global minimum tax is nothing new. that of last October global minimum tax blueprint is considering an option for a deduction for property, plant and equipment and labor costs when calculating the application of minimum tax. In the plan, this is a substance-based exclusion.

The idea behind such an exclusion is that if you have actual activities (called “substances”) even in a low tax jurisdiction, the minimum tax should not be so severe.

The question in the current negotiations is whether a deduction for assets and payroll will be sufficient for world leaders. In recent years, countries with preferential tax policies like patent boxes have adopted rules that require some economic substance for companies to benefit from lower tax rates.

Let’s say a reasonable amount of economic substance disables the global minimum tax in a low tax jurisdiction. This would mean that policies such as patent boxes, special economic zones and related tax preferences would continue to exist as long as companies do not artificially manipulate their profits to benefit from these preferences.

This would be the most generous form of substance exclusion, and would likely benefit many countries that have preferential tax policies.

The least generous form of substance exemption is having none at all, which the Biden administration proposed for the US version of the minimum tax.

Between the US position and the other end of the spectrum there are many alternatives, including my own recommendation for the design of the minimum tax base.

Whether businesses are excluded based on their industries, or operations in low-tax jurisdictions are excluded due to the presence of economic substance, time will tell. There is still a lot of work to be done, but these political questions must be resolved taking into account the need for simplicity and neutrality and an awareness of trade-offs rather than the politics surrounding certain companies or countries.

Launch the U.S. International Tax Reform Resource Center

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Government proposes Rs264bn in new taxes in 2021-22 budget https://lost-worlds.com/government-proposes-rs264bn-in-new-taxes-in-2021-22-budget/ https://lost-worlds.com/government-proposes-rs264bn-in-new-taxes-in-2021-22-budget/#respond Fri, 11 Jun 2021 17:20:57 +0000 https://lost-worlds.com/government-proposes-rs264bn-in-new-taxes-in-2021-22-budget/

ISLAMABAD: The federal government has proposed Rs264 billion in new taxes in the budget for the 2021-2022 fiscal year.

Federal Revenue Council member Tarique Chaudhry informed that FBR has proposed new policy measures on income as well as sales tax and federal excise duty.

FBR proposed Rs52 billion in new customs taxes, Rs215 sales tax and federal excise tax and Rs116 billion in income tax; on the other hand, they also proposed relief of Rs 42 billion in customs, Rs 19 billion in sales and FED, and Rs 58 billion in income tax, leading to the overall collection of Rs 264 billion in taxes in the next fiscal year.

A member of the Inland Revenue said the tax department also proposed implementing measures of Rs 242 billion in the 2021-2022 budget.

The government has set a revenue target of Rs 5,829 billion for the next fiscal year.

“We will reach Rs4,700 billion in the outgoing fiscal year and if we add 8.2% inflation, in addition to adding the above-mentioned policy measures, we will then be able to collect Rs5,829 billion in taxes over the course of the year. next fiscal year, ”said the IR member.

While explaining the income tax revenue measures, he said the tax department will charge 7.5% adjustable tax to non-active taxpayers whose electricity bill is over Rs 25,000 in areas residential.

We estimated to recover 1 billion rupees from this measure, he added.

Likewise, to discredit the “on” money concept, it has also been proposed to collect the tax from those who did not reserve the vehicle but bought it later.

He also said that the IR has added certain sectors, such as pharmaceuticals, poultry, animal feed and edible oil, to the reseller holdback as well as distributor lists and that it has been proposed to withdraw income tax from them.

He said they would collect Rs 20 billion through streamlining procedures and automating business processes for withholding control.

In addition, they estimated that they would collect Rs 10 billion from property income as well as real estate valued under Rs 5 million.

He said that FBR estimated to collect Rs 5 billion in tax for the export of services on the same basis as the export of goods which will be taxed at the rate of 1 percent under the final tax regime.

In accordance with the finance bill, it has also been proposed to levy a withholding tax on rental income from subletting.

In addition to this, IR member Tariq Chaudhary informed that they have proposed to grant an income tax relief of Rs 58 billion, for which IR will remove 12 withholding taxes, such as the payment fees to residents, tax on cash withdrawals over Rs 50,000, tax on banks. instrument, tax on non-cash banking transactions, tax on persons paying amounts abroad by credit or debit card or prepaid cards.

In addition, it was also proposed to abolish the tax on domestic air travel, the tax on mineral extraction, the tax for members of a stock exchange registered in Pakistan, the tax on marginal funding by the NCCPL, the CNG station tax and the tax on certain petroleum products. some products.

Chaudhry said the tax department has also proposed to impose federal excise taxes at the rate of Rs1 on mobile phone calls exceeding three minutes. Likewise, it has also been proposed to impose FED on internet data usage at the rate of Rs5 per GB.

We have an estimate to collect Rs70 billion from this tax, he added.

He added that the customs estimated to collect 1 billion rupees in tax by the imposition of the FED on the electronically heated tobacco.

Ali informed that they have proposed to increase regulatory fees on prepared foods, feeds, perfumes, cheeses, hair shampoos and many more as they fall into luxury items.

Likewise, he said that they also proposed to increase the import duty on mobiles to promote the local industry. Pakistanis imported Rs 270 billion worth of cellphones last year, and the government not only wants to promote the local industry but also export phones, he said.

On top of that, he said FBR has proposed to reduce the CD on 584 tariff lines, including cotton, woven to incentivize the textile industry.

He also said that the tax department has also proposed to reduce tariffs on goods related to tourism, shoes, paints, chemicals and artificial leather industries.

Hamid Ali also said the government has decided to end taxes, including CDs, on the importation of 850CC vehicles. We not only expect a Rs 200,000 drop in vehicle prices down to 850CC, but also to attract new investors.

The IR member said that FBR proposed to levy a sales tax on the retail price of sugar, as it would be moved to the third schedule.

In addition, it has also been proposed to levy a sales tax on the sales of used lead acid batteries as it is an unorganized sector.

He said that we have also proposed to remove the zero-ratings of crude oil, parts and components of zero-rated plant and machinery, importation of plant and machinery by the oil and gas industry, and supply, repair and maintenance of ships.

The IR member informed that it has also been proposed to increase the sales tax on potassium chlorate from Rs 80 per kg to Rs 90 per kg in addition to the standard rate of 17 percent.

IR member policy said that there we also offered to collect sales tax on sales of goods through the online marketplace, in addition to the tax department, he also offered to get a license for each brand.

According to the budget bill, it has also been proposed to reduce taxes on the export of services from 17 to 16 percent in the territory of the capital Islamabad.

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Here are the 10 main categories of application of EBSAs https://lost-worlds.com/here-are-the-10-main-categories-of-application-of-ebsas/ https://lost-worlds.com/here-are-the-10-main-categories-of-application-of-ebsas/#respond Fri, 11 Jun 2021 12:39:56 +0000 https://lost-worlds.com/here-are-the-10-main-categories-of-application-of-ebsas/

A new report from the Government Accountability Office (GAO) sheds new light on the enforcement activities of the DOL’s Employee Benefits Security Administration.

The 56-page report, Enforcement efforts to protect the rights of members of employer-sponsored pension and health benefit plans, provides what amounts to a tutorial on EBSA enforcement activities, including:

  • how the agency manages its execution process;
  • strategies to improve investigative processes and ensure the quality of execution; and
  • the immediate and long-term challenges of COVID-19 for EBSAs and private sector pension and health plans.

As part of its nearly 18-month investigation, GAO analyzed data and documents from EBSA and interviewed officials from EBSA’s country office and three regional offices, as well as knowledgeable stakeholders. on service compliance requirements.

He found that the 10 most common offense categories accounted for almost 97% of all offenses. In the retirement field, the most common ERISA violation categories found in EBSA investigations closed for fiscal 2020 included:

  • Fiduciary imprudence (869 cases)
  • Exclusive use (793 cases)
  • Fiduciary transactions for own account (543 cases)
  • Transactions prohibited with an interested party (457 cases)
  • Non-compliance with plan documents (344 cases)
  • Unfair advantage for the employer (235 cases)
  • Disclosure requirement: plan descriptions and summary plan descriptions (183 cases)
  • Collage (159 cases)
  • Report violation: annual reports (84 cases)
  • Failure to establish trust (55 cases)

Overall, EBSA investigators identified 4,273 violations in the 1,411 investigations closed in FY2020. This included 3,776 pension plan violations out of 1,056 closed investigations and 377 plan violations. health out of 288 closed investigations.

Additional results for fiscal 2020 show that nearly 84% of investigations were civil and over 16% were criminal, resulting in payments of over $ 3 billion to members and plans.

The GAO notes that the last time it conducted a similar review was in 2007. Over the past decade, however, pension plan assets have grown from over $ 5 trillion to $ 10 trillion. $ 7 billion, with EBSA’s supervisory authority extending to nearly 722,000 pension plans and approximately 2.5 million health plans as of fiscal 2020.

Cases decrease, recoveries increase

One of the most significant changes in the EBSA execution process, according to the report, came in 2013, when the agency began prioritizing cases that could affect many people and recover important assets. . As expected, as EBSA conducted more complex and technical investigations, the number of closed cases declined, while monetary recoveries increased. In fact, the total monetary recoveries for participants more than doubled between fiscal 2011 and fiscal 2020.

The GAO also found that nearly 80% of total recoveries from all sources were from major cases in 2020. During the same period, the total number of closed investigations fell by more than 62%.

According to EBSA, with the exception of those regarding employee stock ownership plans, investigations into plans identified through EBSA’s targeting methods were more likely to identify a violation than sample investigations.

To ensure the quality of investigations, EBSA says it offers training, documents procedures and reviews open and closed cases to assess whether investigative procedures were followed, the report notes.

Impact of the pandemic

Regarding the current challenges for the application of the EBSA, the GAO notes that in some cases, officials of the EBSA have raised the same issues as industry stakeholders regarding the COVID-19 pandemic, such as the challenge of adjusting to a remote working environment, delayed communications and lack of guidance. .

EBSA officials also described some unique challenges, including delays in their investigations, changes to investigative processes and closed courts. For example, EBSA officials have reported that court closures have temporarily slowed criminal cases, but virtual hearings have increased, litigation has resumed.

Unsurprisingly, potential long-term challenges include difficulty locating the many participants who may have quit their jobs due to the pandemic and may be unaware that they left retirement funds, according to stakeholders and officials. of EBSA interviewed. Limited travel, business failures and fraud are other potential long-term challenges cited by EBSA officials, according to the report.

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Orphazyme ignores the reasons for stock volatility https://lost-worlds.com/orphazyme-ignores-the-reasons-for-stock-volatility/ https://lost-worlds.com/orphazyme-ignores-the-reasons-for-stock-volatility/#respond Fri, 11 Jun 2021 10:36:00 +0000 https://lost-worlds.com/orphazyme-ignores-the-reasons-for-stock-volatility/

By Chris Wack

Orphazyme AS said US custodian stocks representing its common stock on the Nasdaq have experienced extreme price and trading volume volatility since Thursday.

The biopharmaceutical company said it was not aware of any material changes in its clinical development programs, financial condition or operating results that would explain the price volatility or volume of transactions that has occurred. .

The stock is down 57% to $ 9.08 in pre-trade, after closing Thursday’s session up 300%. Pre-market volume was 909,000 shares at 6:30 am ET, while the share has an average volume of 183,000 shares in 65.

Orphazyme said investors who buy the company’s ADSs or shares can lose a significant portion of their investments if the price of those securities subsequently drops.

Orphazyme’s applications for arimoclomol for Niemann-Pick disease type C are under priority review with the United States Food and Drug Administration, with an expected action date under the Prescription Drug. User Fee Act on June 17, as well as with the European Medicines Agency, with an opinion from the Committee for Medicinal Products for Human Use expected later this year.

Write to Chris Wack at chris.wack@wsj.com

]]> https://lost-worlds.com/orphazyme-ignores-the-reasons-for-stock-volatility/feed/ 0 Israeli soldiers disguised as Arabs kill 2 Palestinian security agents, one fighter https://lost-worlds.com/israeli-soldiers-disguised-as-arabs-kill-2-palestinian-security-agents-one-fighter/ https://lost-worlds.com/israeli-soldiers-disguised-as-arabs-kill-2-palestinian-security-agents-one-fighter/#respond Thu, 10 Jun 2021 22:38:22 +0000 https://lost-worlds.com/israeli-soldiers-disguised-as-arabs-kill-2-palestinian-security-agents-one-fighter/

DUBAI: For Palestinians living in the Gaza Strip, “home” is a concept that rarely conjures images of security and stability.

Israel and Hamas have waged four short but savage wars since the militant group took control of this fragment of territory in 2007.

With each wave of violence comes a new cycle of destruction and reconstruction, a “recycling of pain,” as Gaza-based artist Mohamed Abusal told Arab News.

In late May, tens of thousands of Palestinians returned to their homes in Gaza to inspect the damage after 11 days of fighting – the most serious escalation of hostilities since the 2014 war.

Tens of thousands of Palestinians returned to their homes in Gaza to inspect the damage after 11 days of fighting and shelling by Israeli forces. (AFP / File Photos)

According to Palestinian officials, at least 2,000 homes have been destroyed and 15,000 damaged by the latest wave of violence, further degrading the already fragile humanitarian situation in Gaza, long suffocated by an Israeli and Egyptian blockade.

Gaza had yet to recover from the 2014 war when fighting resumed on May 10. Older buildings now stand like crumbling tombstones next to recently shattered buildings. It is a sight too familiar to the inhabitants of the territory.

To help redefine Gaza’s ravaged urban topography, Palestinian architect Salem Al-Qudwa has developed a series of do-it-yourself, flexible, eco-friendly and affordable house designs.

The innovative design means units can be built on sand or rubble and easily nested, allowing extended families to live under one roof – a potential lifeline for widows or orphans from recent fighting.

“These are houses that can empower the community in Gaza,” said Al-Qudwa, a member of the Conflict and Peace with Religion and Public Life program at Harvard Divinity School.

Palestinian architect Salem Al-Qudwa

“The Israelis have destroyed multi-storey buildings and plunged their residents into poverty. They lost everything. That is the problem right now, this never-ending cycle of destruction and reconstruction, but, more importantly, the destruction of the physical and social fabric of Gazan society.

Al-Qudwa was dismayed to see a repeat of the havoc wrought in Gaza in 2014.

“These attacks pushed back Gaza for decades, destroying infrastructure in many parts of the city as well as the social fabric, which is crucial when it comes to housing,” he said. “Now the 2021 conflict pushes Gaza back 50 years. “

The 2014 war destroyed around 18,000 homes, leaving around 100,000 Palestinians homeless. However, the temporary wooden structures built by international aid agencies involved in post-war reconstruction were not suited to the needs of large families and did not provide adequate temperature controls.

Instead of consulting locals on how to proceed with the reconstruction of Gaza, aid agencies turned to foreign architects, “coming to replace our social structure with a mud house, a sandbag or a shelter in wood, ”Al-Qudwa said.

GAZA WAR COST

* 77,000 – Gazans displaced inside the country by the May conflict.

* 2,000 – Number of homes destroyed.

As governments and relief agencies pour money back into the reconstruction effort in Gaza, Al-Qudwa fears that the same fragile structures will be built, preventing residents from securing sustainable housing that represents the stability, permanence and hope for the future.

Al-Qudwa, born in 1976 to a Palestinian family in Benghazi, Libya, returned to Gaza at the age of 21 to study architectural engineering at the Islamic University of Gaza. He then obtained a doctorate. from the Oxford School of Architecture at the University of Oxford Brookes in the United Kingdom.

In 2020, he moved to the United States with his American-Palestinian family after earning a scholarship at Harvard Divinity School.

While working for Islamic Relief Worldwide, Al-Qudwa created the Poor and Damaged House Rehabilitation Project, which designed houses ranging from modest single rooms to spacious houses with communal courtyards, for more than 160 families in low income.

“I helped them build a kitchen, a bathroom and a bedroom and for them it was like they had a castle,” he said.

Prototype home design for the Gaza Strip allowing for future vertical incremental expansion for families affected by conflict. (Provided)

The project was so transformative that it was shortlisted for the World Habitat Award and received a commendation in 2018.

“The project undertaken with Islamic Relief allowed me to work on characterizing reconstruction projects in terms of feasibility,” Al-Qudwa said. It also taught her the value of taking into account what communities really want in the form of sustainable and sustainable housing.

“This led me to see the need for simple architecture as well as a revaluation of traditional construction techniques, in connection with the participation of residents in the process of designing and building their houses.

Gaza’s minimalist architecture is the product of its dire circumstances. But Al-Qudwa sees his homeland’s rudimentary urban landscape, and even its shortage of building materials, as an opportunity for more positive social transformation.

Part of the challenge in Gaza comes from the Israeli blockade in place since 2007, which limits access to some building materials.

Al-Qudwa sees his homeland’s rudimentary urban landscape, and even its shortage of building materials, as an opportunity for more positive social transformation. (Provided)

Before the occupation, limestone was a material commonly used in local architecture. It is now far too expensive to import from the West Bank, making concrete from Israel the most popular material of choice.

Al-Qudwa is developing plans for three five-story concrete houses, each with proper insulation and built on solid foundations – in stark contrast to the emergency and transitional structures offered by aid agencies.

Unlike the monotonous block structures typically forged from concrete, Al-Qudwa uses the material creatively, enlivening his designs with nods to traditional Arabic motifs, incorporating lattice screens, brick patterns and even shared lessons.

Each structure has a row of columns, allowing additional floors to be added at a later date. “They are ‘columns of hope’ because with columns you get the idea that something will be added to the structure within a certain period of time,” Al-Qudwa said.

As he has shown through his designs, there are many ways to create low cost homes that are attractive and also maintain a sense of community even when resources are scarce.

As the Palestinians pick up the pieces of the latest carnage, Al-Qudwa’s work offers a glimmer of hope for a more permanent future, both structurally and psychologically. (Provided)

In addition, its new prototypes use solar water heaters, gray water recycling and rainwater harvesting systems – all crucial design elements in a region that has long suffered from power cuts and shortages. of water.

Al-Qudwa’s enduring designs run counter to other local reconstruction strategies, including Rawabi, which means “The Hills” in Arabic, the first town planned for and by Palestinians in the West Bank near Birzeit and Ramallah.

Spanning 6.3 square kilometers, the monotonous block-style structures are arranged in rows, similar to those found in Israeli settlements erected in the West Bank.

As the Palestinians pick up the pieces of the latest carnage, Al-Qudwa’s work offers a glimmer of hope for a more permanent future, both structurally and psychologically.

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Twitter: @rebeccaaproctor

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Here’s why Bitcoin stocks were volatile this week https://lost-worlds.com/heres-why-bitcoin-stocks-were-volatile-this-week/ https://lost-worlds.com/heres-why-bitcoin-stocks-were-volatile-this-week/#respond Thu, 10 Jun 2021 20:41:11 +0000 https://lost-worlds.com/heres-why-bitcoin-stocks-were-volatile-this-week/

What happened

There were two major stories for the popular cryptocurrency Bitcoin (CRYPTO: BTC) over the past week, causing disparate market reactions. On Monday, the Justice Department announced that it had seized Bitcoin obtained during a ransomware attack. This caused Bitcoin to fall because investors started to wonder how secure Bitcoin really is. But on Tuesday, El Salvador voted to make Bitcoin legal tender. This was seen as a big development for the long-term adoption of Bitcoin, sending coins higher.

In total, Bitcoin has only risen by around 1% since the start of the week. But it was a volatile race to get there.

Shareholders are already well aware, but Bitcoin stocks can trade as volatile as Bitcoin itself. All of those stocks have skyrocketed during the week. But since Thursday afternoon, CleanSpark (NASDAQ: CLSK) the stock was up 13% for the week. Marathon Digital Holdings (NASDAQ: MARA) and Osprey Bitcoin Trust (OTC: OBTC) also increased by 9% and 8%, respectively. On the other hand, Canaan (NASDAQ: CAN) the stock was down almost 15%.

Image source: Getty Images.

So what

To highlight how volatile Bitcoin stocks can be, consider that only one of these companies (CleanSpark) released any news during the week. None have filed anything with the Securities and Exchange Commission. In addition, no prominent Wall Street analyst has weighed on stocks and caused the price per share to fluctuate. These stocks have all made big moves without any company specific news other than the fluctuating price of Bitcoin.

As mentioned, only CleanSpark had news during the week. It happened on the afternoon of June 7 – ironically, the stock’s least volatile trading day.

CleanSpark management made an appearance at Water Tower Research Fireside Chat. During the presentation, Executive Chairman Matt Schultz announced that he had just learned that the CleanSpark share would be included in the Russell 2000 Index. For this reason, Shultz said his data suggests that 4.7 million and 5.9 million CleanSpark shares will be purchased for exchange-traded funds (ETFs) and index funds by June 25. This interesting development might help explain why CleanSpark was up for the week.

Having said that, I would expect CleanSpark, Marathon Digital, and Canaan to move with the price of Bitcoin as it is the most fundamental part of their business. For example, a higher price for Bitcoin encourages more mining activity, requiring more mining equipment. Canaan is supplying this equipment and sales have recently resumed. The company generated more than $ 61 million in revenue in the first quarter of 2021, more than ten times more than the previous quarter.

As sales pick up for Canaan, there is still a lot of uncertainty. The company released first quarter results on June 1, noting that it was not giving forward guidance due to the fluctuation in the price of Bitcoin. However, a representative clarified via email the next day that Canaan management expects to generate between $ 150 million and $ 250 million in revenue in the second quarter. This is an astonishing rate of growth that investors should take note of. However, this is also an extremely wide range of revenue forecasts, highlighting how unknown this business is yet given the fluctuations in the price of Bitcoin.

The price of Bitcoin is also a big issue for Marathon Digital. Not only is the company mining Bitcoin, it has also bought Bitcoin and owns all the Bitcoin it is mining. As of June 2, he held 5,518 bitcoins. With Bitcoin trading at around $ 36,600 at the time of writing, these bitcoins are valued at over $ 200 million, or roughly 7.5% of its market cap – a sizable number.

Stacks of gold coins display a symbol representing Bitcoin.

Image source: Getty Images.

Now what

CleanSpark also offers products in the sustainable energy sector, so its long-term fate is not completely tied to that of Bitcoin. However, if you are investing in Canaan or Marathon Digital for the long term, you are relying on two things. First of all, you rely on Bitcoin to go up. Second, you rely on them to create shareholder value by running good companies. But the price of Bitcoin is the most important factor – a well-run Bitcoin business is not a compelling investment when the price of Bitcoin skyrockets.

For this reason, investing more directly in Bitcoin may be a better way to invest in this space. You can do this relatively easily through a cryptocurrency exchange or with a fund like Osprey Bitcoin Trust. Osprey only holds Bitcoin. The only problem sometimes is that stocks trade at a premium to the underlying Bitcoin assets – currently the premium is around 19%.

Once Osprey Bitcoin Trust trades closer to its net asset value, it can be a good way to invest in Bitcoin. If you think Bitcoin is going up, you can profit from it without taking on the operational risks associated with owning shares in other companies.

This article represents the opinion of the author, who may disagree with the “official” recommendation position of a premium Motley Fool consulting service. We are heterogeneous! Questioning an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer.

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6 Ways to Help Clients Avoid IRMAA Medicare Supplements in Retirement https://lost-worlds.com/6-ways-to-help-clients-avoid-irmaa-medicare-supplements-in-retirement/ https://lost-worlds.com/6-ways-to-help-clients-avoid-irmaa-medicare-supplements-in-retirement/#respond Thu, 10 Jun 2021 20:07:37 +0000 https://lost-worlds.com/6-ways-to-help-clients-avoid-irmaa-medicare-supplements-in-retirement/

What would you like to know

  • Health insurance surcharges for high-income retirees can reduce income.
  • With the right income withdrawal strategies, your clients can reduce their exposure to these charges.
  • Roth IRAs, life insurance, and reverse mortgages can be invaluable tools.

Retirees are declaring bankruptcy at much higher rates today than in the past. In fact, the the bankruptcy rate for people aged 65 and over has increased by more than 200% from 1991 to today.

One of the main reasons for this increase in bankruptcies is the skyrocketing cost of medical care. Example: A 65-year-old couple retiring in 2021 will need $ 300,000 to cover their health care and medical costs throughout their retirement, according to the latest annual retiree health care from Fidelity Investments. estimated price.

Financial advisers should be aware of the long term risks that can arise from these health care costs and should be prepared with solutions. In addition, they need to understand how Medicare’s monthly income-related adjustment amount (IRMAA) can affect the financial security of retirees.

IRMAA is a means-tested program that was created in 2003 to help extend Medicare solvency by increasing the premium that some Medicare beneficiaries pay based on their income. Since 2003, the income brackets of the IRMAA, calculated from the modified adjusted gross income (MAGI) of the two previous years of a retiree, determine the increases paid by the highest incomes.

People who reported MAGIs of less than $ 85,000 and married couples jointly filing MAGIs who reported MAGIs of less than $ 170,000 in their 2019 returns pay the current Medicare Part B premium of 148. $ 50 per month.

Individuals and couples reporting higher MAGIs in 2019 currently incur an IRMAA surtax on Parts B and D. These surcharges are assessed on five levels. At worst, if a single filer’s MAGI exceeds $ 500,000 and a couple’s MAGI exceeds $ 750,000, the surcharge would be more than double the basic Medicare premium. A person paying the premium plus the surcharge could pay more than three times the basic Medicare premium compared to those not affected by the IRMAA.

Indexed to the IPC-U

Fortunately, a law was passed in 2020 which resulted in the indexing of the IRMAA ranges to the Consumer Price Index for Urban Consumers (CPI-U). This means that a retiree will have to have a higher MAGI than in previous years to be subject to the surcharges. MAGIs for 2021 are $ 88,000 for single filers and $ 176,000 for joint filers.

But there are still a few subtle but important pitfalls advisers can help clients avoid when setting up retirement savings and retirement income distribution plans. These can be triggered by:

  • Excessive spending at the start of retirement. Many retirees tend to spend more early in retirement when they are healthy, active, and ticking off items on their to-do list. Since IRMAA surcharges are calculated based on a two-year “look back” period for MAGI, clients may be affected by IRMAA surcharges even if their income drops significantly in the middle of their retirement.
  • Start of minimum required distributions. Americans are required to make withdrawals from most retirement plans – with the exception of Roth IRAs – when they reach age 72. The withdrawal amount is based on the client’s remaining life expectancy as determined by the IRS Unified Table and the December 31 total. qualified account value.

The higher the value of the account at the end of the year, the higher the annual RMD. In the early years of MSY, the investment balance may grow faster than the percentage required by the MSY calculation, and therefore, as the MSY factor increases due to aging, it is applied to a value of d greater investment. This could catapult customers into a higher IRMAA range, resulting in higher premium surcharges.

6 strategies to avoid IRMAA problems

1. Do not assume that unqualified accounts should be used first in a liquidation order strategy.

A popular pre-retirement accumulation strategy is to defer taxes as long as possible. The assumption is that many people will be in a lower tax bracket upon retirement than they were when they were still working. Unfortunately, continuing to defer taxes on distributions from qualifying accounts (i.e. 401 (k) s, IRAs, 403 (b) s, 457s, etc.) after retirement by taking the income first. unqualified accounts, could result in the balance of the qualified account. (s) becoming so important that when the retiree turns 72 when they are required to start receiving distributions, the RMD not only taxes more income than the retiree wants or needs, but also moves them into an IRMAA supplement bracket on their Medicare premiums.

This could result in over $ 100,000 in future IRMAA charges which could be avoided with proper planning. There is no “rule of thumb” for which liquidation order works best for everyone. Avoidance of IRMAA is one factor that influences the wind-up order, but there are others that should be considered.

2. Consider Roth conversions.

A Roth conversion, in which all or part of the balance of an existing traditional IRA is converted to a Roth IRA, is another way to avoid ending up in higher IRMAA ranges.

This may result in paying more taxes and IRMAA surcharges for a short time now, but can avoid ongoing IRMAA surcharges later if the client is forced to collect more income due to higher RMD. Keep in mind that Medicare determines your IRMAA bracket by reviewing your tax return two years before the RMDs. If possible, complete your Roth conversions before the age of 69.

3. Use RMDs for charitable contributions.

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Bahamas ‘can’t lose sight’ of real G7 goal https://lost-worlds.com/bahamas-cant-lose-sight-of-real-g7-goal/ https://lost-worlds.com/bahamas-cant-lose-sight-of-real-g7-goal/#respond Thu, 10 Jun 2021 18:33:05 +0000 https://lost-worlds.com/bahamas-cant-lose-sight-of-real-g7-goal/

By NEIL HARTNELL

Editor-in-chief of the Tribune

nhartnell@tribunemedia.net

The Bahamas “cannot lose sight” that members of the G-7 and other high-tax European states want to “wipe out” international financial centers (IFCs) such as this nation, a prominent accountant warned yesterday.

Craig A “Tony” Gomez, managing partner of Baker Tilly Gomez, told Tribune Business that the Bahamas must keep this goal in mind when determining how they will respond to the agreement of Group finance ministers. Seven (G-7) on a minimum of 15% of the global corporate tax rate.

He added that the weekend’s announcement was likely to have more of an impact on rival IFCs such as Bermuda, Cayman Islands and British Virgin Islands (BVI), as they researched precisely the type of relocation multinational revenue / profit corporation that is the main target of the G-7.

The Bahamas, on the other hand, has largely focused on managing private wealth through structures that typically use corporate vehicles as passive investment entities, making them less vulnerable to the proposed minimum global corporate tax. by 15%.

However, Mr Gomez suggested that the main impact could be to stifle any future flow of business or investment that the Bahamas may seek to attract multinational entities and companies. He indicated that the G-7 proposal, if adopted as a global standard, could mean that there is little benefit to using this country’s current “no tax” platform if income / profits are still subject to a 15% levy.

“You are attacking international jurisdictions that house multinational corporations. I do not know if the Bahamas has a significant part of this activity, ”explained Mr. Gomez. “But when multinationals in a jurisdiction start to restructure, it impacts their thinking about each country that operates in that orbit.

“While the Bahamas may not be well known or popular for multinational companies, once these types of companies start to strategize or rethink, it will impact any business the Bahamas could have done. get from a multinational entity. “

Urging the Bahamas not to ignore the overarching goals that many G-7 countries have nurtured for two decades, Mr. Gomez added: “We cannot lose sight of the fact that the stated intention remains the same among the G-7 and G-20 countries. It remains to eliminate the so-called tax havens.

“Countries and homes considered as tax havens, it remains the same strategy there. But our main activity is private wealth management, and the Bahamas is not a main center for multinationals. These are the institutions the Bahamas hasn’t really attracted over the years.

Mr. Gomez also questioned the impact of the G-7 proposal on countries like Barbados, with its network of double taxation treaties. These ensure that businesses domiciled in Barbados are taxed at the island’s lowest rate rather than the home country’s higher rate when profits and income are repatriated, which is why so many Canadian companies have headquartered there in the Caribbean, but the minimum rate of 15% would seem to trample all of these deals.

Much work remains to be done to enforce the G-7 minimum global corporate tax of 15 percent. Few details on how this will work in practice have yet to be released, and there were several signs yesterday that global unity is already unraveling and will be difficult to achieve.

Members of Congress and Republican senators in the United States called the proposal “crazy” and threatened to block its passage by the legislature. Pat Toomey, a Republican senator from Pennsylvania, was reported by the British Guardian newspaper as saying: “The fact that they had to try to persuade all these other countries to make sure they raise their taxes is an admission of the damage. that we suffered. do to our own country.

And Republican Senator John Barrasso of Wyoming called the plan “anti-competitive, anti-American and harmful to us as we try to continue growing the economy as we emerge from a pandemic.”

The Bahamian government, in its response to the G-7 decision, pledged that it would not be intimidated by the minimum 15 percent global corporate tax deal. The finance ministry, in a statement, said it was assessing whether there were implications for the Bahamas’ national tax system and the international financial services industry.

He added that this country “reaffirms its sovereign right to determine the tax structure best suited to the country’s ongoing development” in response to the declaration of the world’s most powerful economies that they have reached an agreement on how to fight against tax evasion by large multinationals. – in particular those of the so-called “digital” economy.

“The Ministry of Finance is assessing the impact of these proposals and the implications they may have for the Bahamian national tax system,” he said in response to the G-7 announcement. “The Bahamas reaffirms their sovereign right to determine the tax structure best suited to the country’s ongoing development.

“Nonetheless, the ongoing multilateral discussions are timely given the Prime Minister’s recent announcement in the budget speech regarding the ministry’s impending comprehensive tax study. The outcome of this in-depth empirical assessment will inform ongoing tax reform efforts in pursuit of greater justice and fairness in the country’s tax system.

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The players among the losers in the Treasury Kshs. Budget 3.03T – KBC https://lost-worlds.com/the-players-among-the-losers-in-the-treasury-kshs-budget-3-03t-kbc/ https://lost-worlds.com/the-players-among-the-losers-in-the-treasury-kshs-budget-3-03t-kbc/#respond Thu, 10 Jun 2021 16:43:40 +0000 https://lost-worlds.com/the-players-among-the-losers-in-the-treasury-kshs-budget-3-03t-kbc/

Cabinet Secretary of the National Treasury Ukur Yatani during the presentation of the 2021/2022 budget to Parliament acknowledged the current challenges of revenue collection due to the effects of COVID-19.

During the next fiscal year which begins on 1st In July 2021, the Kenya Revenue Authority (KRA) is expected to collect ordinary revenue in the amount of Kshs. 1.78 billion to finance the Kshs. 3.03 trillion budget.

The National Treasury expects to generate additional Kshs. 8.7 billion thanks to customs measures agreed by the partner states of the East African Community and the amendments proposed in the 2021 budget bill.

Winners

Break new on your mobile as you go. SMS “NEWS” until 20153

CS Yatani, who was aware of the effects of the coronavirus on the overall cost of healthcare, proposed an amendment to the Value Added Tax (VAT) law, which will see drugs used in healthcare facilities, including decongestants and food supplements, exempt from VAT.

“In addition, I propose to grant VAT exemption to diagnostic and laboratory reagents, artificial respirators, including therapeutic breathing apparatus, breathing apparatus, gas masks as well as medical equipment and technologies used in the provision of medical services. I hope that the suppliers of these drugs and medical equipment will reciprocate by making their prices affordable, ”said CS Yatani.

While a new variant of covid is still lurking in the country, CS Yatani has eased the pressure on pharmaceutical manufacturers who will now benefit from exemptions on inputs used in the manufacture of medical ventilators and respiratory devices in order to ” improve access for patients with complications from covid.

Mining and exploration companies will also benefit from VAT exemptions on VAT goods used exclusively in geothermal or petroleum exploration and mining prospects which the government planned to expand in the mining and mining sector. exploration.

“Mr. President, to stimulate Kenya’s green energy effort, I propose to exempt from VAT equipment intended for the production of solar and wind energy.

Power producers who had signed power purchase agreements with the government before April 2020 will also continue to benefit from VAT exemptions on taxable goods until the projects are finalized.

Real Estate Investment Trusts (REITs) Developers who transfer their developments such as affordable housing and special projects such as student hostels will also benefit from VAT exemptions to deepen capital markets by encouraging investors to participate in REITs.

Manufacturers of masks, disinfectants, ventilators and personal protective equipment will also benefit from duty-free importation of raw materials and inputs for another year to support the fight against COVID-19.

Parents of newborns will also continue to enjoy affordable baby diapers as the cash flow is extended by one year, duty free on inputs used to make baby diapers under the duty remission program, a measure that should also increase manufacturing output.

Last year, we gave manufacturers access to inputs for the manufacture of baby diapers duty free, under the duty remission program.

Imported roofing tiles will also get a duty-free rebate as the government seeks to support the affordable housing program.

Losers

While the betting craze was brought under control by the health pandemic, the Treasury noted the effects of gambling on society and proposed to reintroduce excise duties on betting at the rate of 20% of the amount wagered.

Importers of potatoes, peas, tomatoes, among others, will also be required to pay a 30% tariff rate for one year to protect local farmers from cheap imports.

Other imported steel products will continue to be subject to a 25% tariff rate with the corresponding specific rates for an additional year.

Import duties on imported products for the manufacture of leather products and footwear were also maintained at the rate of 25 percent to curb cheap import competition and undervaluation.

Local furniture manufacturers were also protected from cheapness, as EAC partner states agreed to extend the applicable import duties on furniture at the rate of 35% for an additional year.

To further fund the budget, the digital services tax which is paid at the rate of 1% of gross revenue has also been extended to include revenue from the Internet and electronic network.

The Treasury also aims to encourage unregistered people to join the National Health Insurance Fund by amending the Income Tax Law to allow contributions to the National Health Insurance Fund to benefit from tax relief. at the rate of 15% of the amount contributed.

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Affle buys Jampp mobile DSP as market volatility further stimulates mobile ad technology mergers and acquisitions https://lost-worlds.com/affle-buys-jampp-mobile-dsp-as-market-volatility-further-stimulates-mobile-ad-technology-mergers-and-acquisitions/ https://lost-worlds.com/affle-buys-jampp-mobile-dsp-as-market-volatility-further-stimulates-mobile-ad-technology-mergers-and-acquisitions/#respond Thu, 10 Jun 2021 04:35:07 +0000 https://lost-worlds.com/affle-buys-jampp-mobile-dsp-as-market-volatility-further-stimulates-mobile-ad-technology-mergers-and-acquisitions/

The Jampp demand-side mobile platform was acquired by Affle on Wednesday. It is a mobile marketing company present in India and Singapore.

There’s nothing like a little uncertainty (ahem, Apple) to trigger mergers and acquisitions.

The mobile advertising industry has seen a massive wave of consolidation following privacy-related platform changes.

Since February, AppLovin has acquired Adjust, Digital Turbine has bought AdColony followed by Fyber, Zynga has taken over Chartboost, and Vungle has taken over GameRefinery and TreSensa. (Vungle also bought AlgoLift in October of last year.)

“One of the main reasons for joining forces is to be able to tackle the problems of app advertisers from different angles and to have a broader product set to help them throughout the lifecycle of applications. user, ”said Diego Meller, co-CEO and co-founder of Jampp, which was among the last independent mobile DSPs in the market.

“A lot of the consolidation we’ve seen recently was about… finding multiple pieces of the puzzle,” he said.

In Jampp’s case, Meller said, its technology is complementary to Affle, which offers a suite of products for marketers with tools to help with user acquisition, brand marketing, retargeting and detection of advertising fraud. Affle also provides data and ad monetization services to publishers.

Meller said Jampp is bringing technology Affle doesn’t yet have in its portfolio, in the form of a programmatic user acquisition platform.

Jampp is also present in countries where Affle does not have a presence, such as Latin America and North America – and vice versa. Although Jampp has a small office in Singapore, it doesn’t yet have much of a footprint in Asia-Pacific, which is Affle’s home base.

Although Jampp and Affle are both strong in regions with high Android density, Jampp’s activities in North America give it a glimpse into the iOS ecosystem, which has been shaken by changes to Apple’s AppTrackingTransparency. .

“There are many different ways we can help each other,” Meller said.

And that was true even before the deal was officially done. Meller and Anuj Khanna Sohum, CEO and Chairman of Affle, finalized the acquisition across time zones without ever meeting in person, which is emblematic of the art of making deals during a global pandemic.

Although Jampp declined to share a sale price, the company has grown organically from its one and only funding round, Meller said. In 2015, he raised $ 7 million in Series A funding.

Jampp, which employs 96 people, will continue to operate as an independent entity within Affle.

Affle has been listed on the National Stock Exchange and the ESB (formerly Bombay Stock Exchange) in India since 2019.

Including Jampp, Affle has acquired nine companies since 2012, including omnichannel marketing platform Vizury in 2018 and app marketing and recommendation platform Appnext last year.

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