Wednesday, November 7, 2012
The history of computerized replay
I still am not a fan of replay in sports, in part because it does not so remove the human element of observation and inference. I am, however, more accepting of the Hawk-Eye system in tennis, which uses a computer model to predict flight-path. On that note, here is a short profile of the man who invented Hawk-Eye.
Oil Contracts: How to Read and Understand them
This could be a very useful resource. The website OpenOil, an adept and knowledgeable source about the global oil industry, has just said:
In October 2012, OpenOil gathered a group of world class oil experts and professionals to jointly write a book which explains how to read the contracts which govern the industry.
. . .
We are proud to announce that the first book about oil contracts for non-experts, “Oil Contracts – How to Read and Understand them” – is out now!OpenOil is based in a think tank in Berlin, and describes itself like this:
Download the pdf here
"We are a transparency business, seeking market-driven solutions which produce better outcomes from the oil and gas industry for the people of producing nations."This blogger has extensive experience with the oil industry (and is author of this book, not to mention this one), and regards OpenOil as a first-rate site.
Michael Durst: Rethinking the conventional wisdom on taxing multinational corporations.
There is fast-rising public interest in – and justifiable anger at – the current tax policies of large multinational corporations such as Starbucks, Google, Apple and many others.
Now Michael Durst, former director of the US Internal Revenue Service’s advanced pricing agreement programme, has written a forceful new article in Tax Notes indicating that one very important aspect the world’s dominant system for taxing multinational corporations, formulated and pushed forwards by the OECD, is not working. (TJN also notes that the global accountancy profession, derives substantial income from helping multinational corporations design their transfer pricing abuses, and has a massive vested interest in keeping the unworkable system going.) Durst goes on to explain aspects of the superiority of alternative approaches that have been repeatedly attacked by the OECD.
Durst's article is available here: we reproduce with kind permission from Tax Analysts.
Durst frames the issue in terms of ‘ad hoc’ methods of taxing multinationals (notably those put forwards by the OECD, where multinationals' accountants put together a particular, contorted legal structure for the corporation, typically with a key objective of minimising tax) versus ‘pre-established’ methods, such as the so-called ‘fixed margin’ methods used by Brazil, or a system of taxing multinationals known as "formulary apportionment," which is widely used by U.S. states and by Canadian provinces (and is being considered for Europe); where tax is levied according to fixed formulas based on sales, assets and payroll (more on that on those issues on the TJN transfer pricing page.)
Durst starts by taking apart the objections by the OECD and others who oppose the use of pre-established methods: notably that because different countries would adopt conflicting methods under a preestablished system, it might lead to corporations unreasonably getting taxed twice on the same income. Essentially, it is this argument that his article takes to task. Durst says:
TJN would add a third objection: the OECD seems paranoid about the possibility of double taxation, but seems rather unconcerned about what is sometimes called 'double non-taxation' - that is, where the income is taxed nowhere. But whose interests are more important here? Those of the multinationals? Or those of the wider societies upon which they depend, which provide these multinationals with so many benefits that many seem unwilling to pay taxes to support?
On the subject of double taxation, TJN would also add that one might consider it an issue that is being framed in the wrong way. It is complex, but typically a company subject to 'double taxation' might suffer it only to a certain degree, so it may suffers an effective tax rate of, say, 25 percent instead of 22 percent if it weren't suffering 'double taxation'. If one talks about 'double taxation' then accounting firms and multinationals will complain bitterly - but if you talk instead about a somewhat higher effective tax rate, then you have the basis for a far more reasonable discussion.
This will be added to our transfer pricing site.
Now Michael Durst, former director of the US Internal Revenue Service’s advanced pricing agreement programme, has written a forceful new article in Tax Notes indicating that one very important aspect the world’s dominant system for taxing multinational corporations, formulated and pushed forwards by the OECD, is not working. (TJN also notes that the global accountancy profession, derives substantial income from helping multinational corporations design their transfer pricing abuses, and has a massive vested interest in keeping the unworkable system going.) Durst goes on to explain aspects of the superiority of alternative approaches that have been repeatedly attacked by the OECD.
Durst's article is available here: we reproduce with kind permission from Tax Analysts.
Durst frames the issue in terms of ‘ad hoc’ methods of taxing multinationals (notably those put forwards by the OECD, where multinationals' accountants put together a particular, contorted legal structure for the corporation, typically with a key objective of minimising tax) versus ‘pre-established’ methods, such as the so-called ‘fixed margin’ methods used by Brazil, or a system of taxing multinationals known as "formulary apportionment," which is widely used by U.S. states and by Canadian provinces (and is being considered for Europe); where tax is levied according to fixed formulas based on sales, assets and payroll (more on that on those issues on the TJN transfer pricing page.)
Durst starts by taking apart the objections by the OECD and others who oppose the use of pre-established methods: notably that because different countries would adopt conflicting methods under a preestablished system, it might lead to corporations unreasonably getting taxed twice on the same income. Essentially, it is this argument that his article takes to task. Durst says:
"this conventional viewpoint is not only mistaken, but diametrically so."The argument is wrong for two key reasons. First, the "ad hoc" methods create as least as much conflict between countries' tax systems as the pre-established methods do:
"ad hoc transfer pricing methods almost certainly result in double taxation at least as frequently as do preestablished methods"The OECD even confesses that transfer pricing "is not an exact science," he notes, and
"the most that typically can be hoped for is not a single but instead a range of results, all of which might be seen as correct. . . . those ranges can be astonishingly broad"Second, preestablished methods do a better job than ad hoc methods of protecting taxpayers against uncertainty of effective tax rates:
"The taxpayer has no way of predicting the manner and extent to which the two countries’ approaches will differ [and] face a high degree of uncertainty as to the combined tax burden they are likely to face. . . . That uncertainty can be expected to discourage business investment."When 'pre-established' methods are used, companies will not face this uncertainty: to the extent that double taxation does happen, they will know this in advance, and can make a good decision on whether or not to invest. The OECD guidelines ignore this huge issue. Durst gives some numerical examples to illustrate his point.
TJN would add a third objection: the OECD seems paranoid about the possibility of double taxation, but seems rather unconcerned about what is sometimes called 'double non-taxation' - that is, where the income is taxed nowhere. But whose interests are more important here? Those of the multinationals? Or those of the wider societies upon which they depend, which provide these multinationals with so many benefits that many seem unwilling to pay taxes to support?
On the subject of double taxation, TJN would also add that one might consider it an issue that is being framed in the wrong way. It is complex, but typically a company subject to 'double taxation' might suffer it only to a certain degree, so it may suffers an effective tax rate of, say, 25 percent instead of 22 percent if it weren't suffering 'double taxation'. If one talks about 'double taxation' then accounting firms and multinationals will complain bitterly - but if you talk instead about a somewhat higher effective tax rate, then you have the basis for a far more reasonable discussion.
This will be added to our transfer pricing site.
Tuesday, November 6, 2012
Sports and politics
This is interesting--no necessary rhyme or reason for the split. This, on the other hand, is obnoxious; the notion that any citizen should stick to his profession--and implicitly that he is not qualified or entitled to engage in the democratic process--reflects the height of arrogance.
And one more: Slate's Hang Up and Listen podcast this week includes an interview with David Meggyesy, an NFL player in the 1960s who was active in opposing the Vietnam War, attracted the wrath of the league, and wrote about the experience of being an activist athlete. He discusses his experiences, as well as commenting on the many current NFL players who have spoken out on marriage equality. The podcast was recorded on Monday, before the election happened. As you all probably know, the Minnesota initiative that Vikings punter Chris Kluwe wrote about (which would have defined marriage as between one man and one woman) failed. The Maryland initiative establishing marriage equality, which the Ravens'Brendan Ayanbadejo vocally supported (drawing to him the ire of an insane state representative) passed.
And one more: Slate's Hang Up and Listen podcast this week includes an interview with David Meggyesy, an NFL player in the 1960s who was active in opposing the Vietnam War, attracted the wrath of the league, and wrote about the experience of being an activist athlete. He discusses his experiences, as well as commenting on the many current NFL players who have spoken out on marriage equality. The podcast was recorded on Monday, before the election happened. As you all probably know, the Minnesota initiative that Vikings punter Chris Kluwe wrote about (which would have defined marriage as between one man and one woman) failed. The Maryland initiative establishing marriage equality, which the Ravens'Brendan Ayanbadejo vocally supported (drawing to him the ire of an insane state representative) passed.
Links Nov 6
Cost of playing east Africa oil game on the rise Reuters
Nov 2 - "A few years ago governments in east Africa would practically pay companies to come and explore for oil or gas on their territory. Those days are gone ... Governments are trying to extract more revenue and benefits from the oil and mining sectors amid perceptions they have not delivered wider prosperity on the world's poorest continent."
See also:
Kenya "moves to create new oil and gas tax rules Engineering News / Reuters
Tanzania Increases Tax Take From Gold Mining Tax-News
Reports in the series Tax competition in East Africa: A race to the bottom?
Looking a gift horse in the mouth swissinfo
Nov 6 - Glencore chief pays a large amount in taxes, due to be distributed to poorer communities within Switzerland. However, some members of those communities believe that the tax should flow back to the countries where the raw materials are extracted.
Brazilian billions beckon for private bankers swissinfo
Oct 29 - "While exploding wealth in China and the rest of Asia has attracted a legion of private banks to the region, some players have also beefed up their Brazilian operations, sensing rich pickings in the growing economy."
If you’re in Brasilia on Friday Treasure Islands
Nov 5 - Nicholas Shaxson will be speaking, alongside Brazil’s justice minister among many others, at Transparency International’s 15th International Anti-Corruption Conference.
The Bailout Of Russian “Black Money” In Cyprus Testosterone Pit
Nov 4 - A “secret” report by the German version of the CIA, the Bundesnachrichtendienst (BND), bubbled to the surface, asserting that the pending bailout of Cyprus would use the money of taxpayers in other countries, particularly in Germany, to bail out mostly rich Russians who have over the years deposited their “black money” in Cypriot banks that are now collapsing.
Caribbean Urged To Stand Ground Over Tax, Regulation Tax-News
Nov 6 - "At a two day international conference on the financial services sector in St. John’s, Antigua, a leading international expert has urged Caribbean nations to stand their ground over mounting international pressure in the area of tax and regulation."
Bankers must be made to bear the cost of their reckless risk-taking Guardian
Nov 4 - Prem Sikka observes that "Separating retail and investment banking is not enough. Speculative banking needs to have unlimited liability."
MPs roast taxman over Starbucks tax bill Reuters
Nov 6 - "[UK] MPs tore into the chief of the tax authority on Monday for allowing coffee chain Starbucks to pay almost no corporation tax despite selling coffee and snacks worth billions of pounds to British customers."
Greece Seeks Taxes From Wealthy With Cash Havens in London New York Times
Nov 5 - "Greece, heavily in debt and desperate to track down money wherever it can, is leaving no stone unturned."
Scandinavian countries top the list of world's most prosperous nations... but U.S. drops out of top ten for the first time Daily Mail
Nov 3 - We haven't explored their methodology, but results of this prosperity index are interesting.
Nov 2 - "A few years ago governments in east Africa would practically pay companies to come and explore for oil or gas on their territory. Those days are gone ... Governments are trying to extract more revenue and benefits from the oil and mining sectors amid perceptions they have not delivered wider prosperity on the world's poorest continent."
See also:
Kenya "moves to create new oil and gas tax rules Engineering News / Reuters
Tanzania Increases Tax Take From Gold Mining Tax-News
Reports in the series Tax competition in East Africa: A race to the bottom?
Looking a gift horse in the mouth swissinfo
Nov 6 - Glencore chief pays a large amount in taxes, due to be distributed to poorer communities within Switzerland. However, some members of those communities believe that the tax should flow back to the countries where the raw materials are extracted.
Brazilian billions beckon for private bankers swissinfo
Oct 29 - "While exploding wealth in China and the rest of Asia has attracted a legion of private banks to the region, some players have also beefed up their Brazilian operations, sensing rich pickings in the growing economy."
If you’re in Brasilia on Friday Treasure Islands
Nov 5 - Nicholas Shaxson will be speaking, alongside Brazil’s justice minister among many others, at Transparency International’s 15th International Anti-Corruption Conference.
The Bailout Of Russian “Black Money” In Cyprus Testosterone Pit
Nov 4 - A “secret” report by the German version of the CIA, the Bundesnachrichtendienst (BND), bubbled to the surface, asserting that the pending bailout of Cyprus would use the money of taxpayers in other countries, particularly in Germany, to bail out mostly rich Russians who have over the years deposited their “black money” in Cypriot banks that are now collapsing.
Caribbean Urged To Stand Ground Over Tax, Regulation Tax-News
Nov 6 - "At a two day international conference on the financial services sector in St. John’s, Antigua, a leading international expert has urged Caribbean nations to stand their ground over mounting international pressure in the area of tax and regulation."
Bankers must be made to bear the cost of their reckless risk-taking Guardian
Nov 4 - Prem Sikka observes that "Separating retail and investment banking is not enough. Speculative banking needs to have unlimited liability."
MPs roast taxman over Starbucks tax bill Reuters
Nov 6 - "[UK] MPs tore into the chief of the tax authority on Monday for allowing coffee chain Starbucks to pay almost no corporation tax despite selling coffee and snacks worth billions of pounds to British customers."
Greece Seeks Taxes From Wealthy With Cash Havens in London New York Times
Nov 5 - "Greece, heavily in debt and desperate to track down money wherever it can, is leaving no stone unturned."
Scandinavian countries top the list of world's most prosperous nations... but U.S. drops out of top ten for the first time Daily Mail
Nov 3 - We haven't explored their methodology, but results of this prosperity index are interesting.
Are Your Customers Experiencing "Delta" or "Cathay Pacific" When Working With You?
Do I need to explain?
Have A Great Day!
thom singer
Have A Great Day!
thom singer
Monday, November 5, 2012
The NCAA and Legal Ethics Rules
The paper I wrote for Santa Clara University's sports law symposium in September is posted on SSRN. The paper is titled, The NCAA's Indirect Regulation of Lawyer-Agents: In Direct Conflict with the Model Rules of Professional Conduct, and here is the abstract:
Abstract:
The NCAA does not directly regulate lawyers but it does so indirectly by regulating the lawyer’s client in a manner that has an adverse effect on the lawyer’s representation of the client to the disadvantage of the client. In this regard, I am referring to the ability of a high school or college athlete to make a fully informed decision whether to sign a professional contract. NCAA rules not only place restrictions on their ability to “test the waters” but also to retain counsel and have counsel speak to, and negotiate with, club personnel on their behalf. This paper addresses the following institutional barriers to ethical behavior: (1) NCAA restrictions that prohibit an athlete from (i) having a lawyer communicate or negotiate a contract with professional club personnel on the athlete's behalf (Bylaw 12.3.2.1) and (ii) entering an agreement with a lawyer to perform such services (Bylaw 12.3.1), both of which limit a lawyer’s ability to effectively represent the interests of the client; and (2) the NCAA Eligibility Center’s Questionnaire sent to drafted baseball players in conjunction with the NCAA’s “Unethical Conduct” rule (Bylaw 10.1), which compels a lawyer’s client to divulge confidential information and communications related to the representation. An important public policy question is whether a private association should be allowed to regulate the attorney-client relationship, particularly in ways that are in direct conflict with the Model Rules of Professional Conduct, when no state bar or state supreme court has given the association the power or authority to do so.
The NCAA does not directly regulate lawyers but it does so indirectly by regulating the lawyer’s client in a manner that has an adverse effect on the lawyer’s representation of the client to the disadvantage of the client. In this regard, I am referring to the ability of a high school or college athlete to make a fully informed decision whether to sign a professional contract. NCAA rules not only place restrictions on their ability to “test the waters” but also to retain counsel and have counsel speak to, and negotiate with, club personnel on their behalf. This paper addresses the following institutional barriers to ethical behavior: (1) NCAA restrictions that prohibit an athlete from (i) having a lawyer communicate or negotiate a contract with professional club personnel on the athlete's behalf (Bylaw 12.3.2.1) and (ii) entering an agreement with a lawyer to perform such services (Bylaw 12.3.1), both of which limit a lawyer’s ability to effectively represent the interests of the client; and (2) the NCAA Eligibility Center’s Questionnaire sent to drafted baseball players in conjunction with the NCAA’s “Unethical Conduct” rule (Bylaw 10.1), which compels a lawyer’s client to divulge confidential information and communications related to the representation. An important public policy question is whether a private association should be allowed to regulate the attorney-client relationship, particularly in ways that are in direct conflict with the Model Rules of Professional Conduct, when no state bar or state supreme court has given the association the power or authority to do so.
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