View the related practice notes about Accelerated depreciation
Oil regulation—Thailand—Q&A guide
Oil regulation—Thailand—Q&A guide This Practice Note contains a jurisdiction-specific Q&A guide to oil regulation in Thailand published as part of the Lexology Getting the Deal Through series by Law Business Research (published: June 2021). Authors: Chandler MHM Limited—Nuanporn Wechsuwanarux; E. T. Hunt Talmage, III; David Beckstead; Tachatorn Vedchapun; Noraseth Ohpanayikool 1. Describe, in general terms, the key commercial aspects of the oil sector in your country. The Thai petroleum concession has proven to provide a very stable foundation for investment in the oil and gas industry and downstream projects since 1971. However, Thailand has limited geological prospects for oil and gas. Thailand is a net importer of both oil and gas and its petroleum reserves are declining with increasing demand. Given the present petroleum resource base and demand profile, Thailand will remain a net importer of hydrocarbons for the foreseeable future. Based on the Energy Statistics of Thailand BE 2563 (2020), provided by the Energy Policy and Planning Office (EPPO), Thailand imported a total of 856Kbd (thousand barrels per day) of crude oil or approximately 87 per cent of consumption. Regarding the production of crude oil, in 2019, Thailand produced 126Kbd of crude oil, while Thailand produced 102Kbd of condensate. Natural gas plays a large role in satisfying Thailand's energy requirements. Based on the Energy Statistics of Thailand, Thailand produced 3,623 million standard cubic feet per day; whereas, the
State aid law and corporate taxation
State aid law and corporate taxation Article 107(1) TFEU defines State aid as 'any aid granted by a Member State or through State resources in any form whatsoever which distorts or threatens to distort competition by favouring certain undertakings or the production of certain goods (…), in so far as it affects trade between Member States'. The reference to 'any form whatsoever' makes reference to a concept of State aid much wider than direct subsidies to companies, and particularly it includes the possibility for the European Commission (Commission) to control possible aids granted by Member States through their tax legislation. This category of aid is called 'fiscal aid' and includes any legislative, regulatory or administrative measures related to Member States’ tax systems, especially, but not limited to, corporate taxation. The Commission put fiscal aid under the spotlight in 1998, with the adoption of a 'Notice on the application of the State aid rules to measures relating to direct business taxation'. This Notice confirmed that Member States retain exclusive competence to design their tax systems and to adopt general measures of economic policy, but in doing so must respect EU law, including State aid law The control of fiscal aid by the Commission therefore implies an important limitation in Member States’ powers to design their tax systems. The elements constituting the notion of State aid have been compiled
Electricity regulation—USA—Q&A guide
Electricity regulation—USA—Q&A guide This Practice Note contains a jurisdiction-specific Q&A guide to electricity regulation in USA published as part of the Lexology Getting the Deal Through series by Law Business Research (published: September 2021). Authors: White & Case LLP—Daniel A. Hagan; Hagai Zaifman; John N Forbush 1. What is the government policy and legislative framework for the electricity sector? No single government body sets government policy for the electricity sector. The federal government, which regulates wholesale markets, follows a generally pro-competitive policy. The competition reforms that transformed the US electricity sector represent the latest chapter in three decades of restructuring, deregulation and regulatory reforms that affected utility sectors of the economy historically subject to price regulation. Retail sales are regulated by the states. Several states have adopted choice programmes intended to introduce competition among retail suppliers of electricity. While some states have delayed or suspended retail choice plans amid concerns that deregulation may not benefit end-use consumers, retail choice is thriving in other states, such as New York. US Congress The Energy Policy Act of 2005 (EPAct 2005) represents the most significant change in US energy policy since the Federal Power Act of 1935 (FPA) and the Natural Gas Act of 1938 (NGA). EPAct 2005 granted the Federal Energy Regulatory Commission (FERC) the authority to issue rules to: • prevent market manipulation in wholesale power and gas markets, and in electric
Tax on inbound investment—India—Q&A guide
Tax on inbound investment—India—Q&A guide This Practice Note contains a jurisdiction-specific Q&A guide to tax on inbound investment in India published as part of the Lexology Getting the Deal Through series by Law Business Research (published: November 2021). Authors: BMR Legal—Mukesh Butani; Seema Kejriwal; Sahil Sharma 1. What are the differences in tax treatment between an acquisition of stock in a company and the acquisition of business assets and liabilities? In the case of acquisition of stock, the consideration paid by the buyer becomes the cost of acquisition of the stock for the purpose of calculation of capital gains on the transfer of stock in the future. However, there is no step-up in the cost basis of the assets of the company whose stock is being acquired. On the other hand, subject to certain conditions, in the case of an acquisition of business assets and liabilities, the buyer can achieve a step-up in the cost basis of the assets, thereby enhancing the amortisation base of assets, including intangibles. The goodwill, if any, generated on the acquisition of business assets and liabilities is not eligible for amortisation. Most tax holidays available to an Indian company would continue to be available despite an acquisition of stock (partial or complete) in such company. In the case of an acquisition of specific business assets and liabilities, the benefit of the tax holiday for
Private equity and venture capital—glossary of terms
Private equity and venture capital—glossary of terms A Accelerated depreciation Accelerated depreciation is the set of HM Revenue & Customs rules that allow businesses to deduct from their taxable income the declining value of business-related investments ie equipment and machinery, faster than the value of those assets actually declines. The most common types of accelerated depreciation are 'sum of the years digits' and 'double declining balance'. Acquisition The process of acquiring a controlling interest in another company or any deal where the bidder ends up with 50% or more of the company taken over. Acquisition finance A source of external finance obtained by the acquiring company to fund an acquisition. This can be in the form of bank debt and/or equity, such as a share issue. Alternative investment fund (AIF) Any collective investment undertaking, including investment compartments of an AIF, that raises capital from a number of investors with a view to investing it in accordance with a defined investment policy for the benefit of those investors, and which is not a fund covered by Directive 2009/65/EC on the co-ordination of laws, regulations and administrative provisions relating to undertakings for collective investment in transferable securities (UCITS) (AIFMD, Directive 2011/61/EU, art 4(1)(a)). An AIF may invest in traditional or alternative investments and may be private or listed. For more information (including
CFC rules—entity level exemptions: excluded territories
CFC rules—entity level exemptions: excluded territories This Practice Note deals with the new controlled foreign company (CFC) rules that apply for accounting periods of CFCs commencing on or after 1 January 2013. For information on the similar exemption under the rules that apply until then, see Practice Note: Old CFC rules—exceptions from the CFC rules — Excluded territories. The differences between the old and new rules are explained in this Practice Note. Even if a company is a CFC for an accounting period, a CFC tax charge will only arise if: • the CFC has chargeable profits that pass through the gateways, and • none of the exemptions from the CFC rules apply There are two types of exemption: • entity level exemptions—these exclude the CFC from the CFC rules altogether for that accounting period. The relevant exemptions are: ◦ the excluded territories exemption, which is explained in this Practice Note ◦ the exempt period exemption ◦ the low profits exemption ◦ the low profit margin exemption ◦ the tax exemption, and • finance profit exemptions—these exclude some or all of the profits of certain financing activities from the CFC rules The excluded territories exemption A CFC is exempt for an accounting period if it meets all four conditions: • residence condition—it is resident in an excluded territory for that accounting period • income condition—the total of
Renewable energy—India—Q&A guide
Renewable energy—India—Q&A guide This Practice Note contains a jurisdiction-specific Q&A guide to renewable energy in India published as part of the Lexology Getting the Deal Through series by Law Business Research (published: January 2022). Authors: Khaitan & Co—Dibyanshu; Prateek Bhandari; Shikha Rastogi 1. Who are the principal government participants in the electricity sector? What roles do they perform in relation to renewable energy? The Constitution of India specifies the distribution of executive and legislative powers between the Union and States. 'Electricity' is listed in the concurrent list under the Constitution of India and the Central/Union Parliament and state legislatures have concurrent powers to enact laws on this subject. Therefore, both the Union and state legislatures can enact laws on 'electricity'. However, the laws enacted by the Union Parliament will override the laws enacted by state legislature in the event of inconsistency or conflict. The Electricity Act 2003 (the Electricity Act) enacted by the Union Parliament provides the framework for generation, transmission, distribution, trading and use of electricity in India. The Electricity Act, among other things, provides for the establishment of regulatory commissions at the central level and state level to administer generation, distribution and transmission of electricity. The Central Electricity Authority is a statutory organisation that stipulates, inter alia: • the technical standards for construction of electrical plants, electric lines and connectivity to the grid; • safety requirements for construction, operation
Electricity regulation—Panama—Q&A guide
Electricity regulation—Panama—Q&A guide This Practice Note contains a jurisdiction-specific Q&A guide to electricity regulation in Panama published as part of the Lexology Getting the Deal Through series by Law Business Research (published: September 2021). Authors: Anzola Robles & Asociados—Erika Villarreal Zorita; José A Brenes 1. What is the government policy and legislative framework for the electricity sector? In 1998, Panama restructured its electricity sector. A year later, the state-owned electricity entity (IRHE), which controlled the generation, transmission and distribution of electricity in Panama, was privatised. As part of the restructuring process, the state invited private investment participation in the areas of generation and distribution but retained full control of the transmission infrastructure and services. The state also created a regulatory entity to supervise the operation of the sector. Policymaking authorities for the electricity sector were assigned to the National Secretariat of Energy, a quasi-executive cabinet office created in 2006. The legal framework of the electricity sector comprises: • Law No. 26 of 29 January 1996, as amended by Law No. 68 of 2011, Law No. 24 of 2014 and Law No. 2 of 2018, that created the regulatory entity, the National Authority of Public Services (ASEP); • Law No. 6 of 3 February 1997, as amended by Law No. 43 of 2012, Law No. 18 of 2013, Law No. 67 of 2016 and Law No. 2 of 2018, created the regulatory
Joined Cases T- 515/13 RENV Spain v Commission and T- 719/13 RENV Lico Leasing and Pequeños y Medianos Astilleros Sociedad de Reconversión v Commission [Archived]
Joined Cases T- 515/13 RENV Spain v Commission and T- 719/13 RENV Lico Leasing and Pequeños y Medianos Astilleros Sociedad de Reconversión v Commission [Archived] CASE HUB ARCHIVED—this archived case hub reflects the position at the date of the judgment of 23 September 2020; it is no longer maintained. See further,timeline. Case facts Outline Referral back to the General Court following the Court of Justice’s judgment in Case C- 128/16, which was an appeal against the General Court’s judgment annulling the Commission’s decision of 17 July 2013 (Case SA.212333)
Electricity regulation—India—Q&A guide
Electricity regulation—India—Q&A guide This Practice Note contains a jurisdiction-specific Q&A guide to electricity regulation in India published as part of the Lexology Getting the Deal Through series by Law Business Research (published: September 2021). Authors: Trilegal—Neeraj Menon; Swathy S Pisharody ; Kuhoo Mishra 1. What is the government policy and legislative framework for the electricity sector? Constitutional framework The seventh schedule of the Constitution of India sets out the subjects on which the parliament and the state legislatures can frame legislation. It demarcates such subjects into three lists: • the Union List; • the State List; and • the Concurrent List. While Parliament and the state legislatures legislate exclusively upon subjects mentioned in the Union List and the State List respectively, the subjects mentioned in the Concurrent List can be legislated upon by both. However, in the case of a conflict between the laws made by the state legislatures and Parliament on the same subject matter under the Concurrent List, the state legislation will be void to the extent it is inconsistent with the legislation made by parliament. Electricity is a subject mentioned in the Concurrent List. Legislative framework The Electricity Act 2003 (the Electricity Act) is the parent legislation governing the electricity sector in India (other than nuclear energy, which is governed by the Atomic Energy Act 1962). The Electricity Act consolidated various laws governing the electricity sector in India and introduced key reforms
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