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PRACTICE NOTES
FORTHCOMING CHANGE relating to the future withdrawal of DST: Following the OECD-led discussions that resulted in political agreement on the two-pillar solution in October 2021, the UK struck a deal with the US, Austria, France, Spain and Italy to transition away from DST to the new global tax system, with a new DST-credit system being used for the transition. As part of the deal, the UK would keep the revenue raised from DST until the Pillar One reforms became operational and, once Pillar One was in effect, businesses would be able to use the difference between what they paid in DST from January 2022, and what they would have paid if Pillar One had been in effect instead, as credit against their future UK corporation tax bill. In return, the US (which views digital services taxes as discriminatory against US companies) agreed to withdraw proposed retaliatory tariffs on some US imports from the other five countries, and committed to not taking further trade action against those countries because of their digital
GLOSSARY
A family of technologies generically referred to as DSL, or xDSL, capable of transforming ordinary phone lines (also known as 'twisted copper pairs') into high-speed digital lines, capable of supporting advanced services such as fast Internet access and video-on-demand. ADSL (Asymmetric Digital Subscriber Line), HDSL (High data rate Digital Subscriber Line) and VDSL (Very high data rate Digital Subscriber Line) are all variants of xDSL.
GLOSSARY
Equipment which allows copper lines to support broadband access. It is network equipment, normally located in the local exchange (but may also be installed in a street cabinet) whose function is to aggregate the traffic of several access lines which have modems that are compatible with xDSL technology and re-lay it through the data network (core). Depending on the product, DSLAM multiplexers connect DSL lines with some combination of ATM, Ethernet, or IP networks.
PRACTICE NOTES
This Practice Note provides practical guidance on digital trade under the UK-EU Trade and Cooperation Agreement (UK-EU TCA). As such, it provides guidance on the scope of digital trade, customs duties, prior authorisation requirements, conclusion of contracts by electronic means, electronic authentication, transfer of and access to source code, online consumer trust, direct marketing communication, open government data, cooperation on regulatory issues in respect of digital trade and the understanding on computer services. Introduction Following on the UK’s decision to leave the internal market of the European Union (EU) (Brexit), the parties reached a free trade agreement in December 2020. The free trade agreement, the UK-EU TCA, is comprehensive and does not only cover trade in goods, but also trade in services, investment, competition and a host of other issues related to Brexit. One of the issues that the UK-EU TCA addresses is that of digital trade. In terms of the UK-EU TCA, the chapter on digital trade applies to all measures of either party that affects trade enabled by electronic
GLOSSARY
An open standard for digital television maintained by the DVB Project and published by a Joint Technical Committee (JTC) of the European Telecommunications Standards Institute (ETSI), the European Committee for Electrotechnical Standardization (CENELEC) and the European Broadcasting Union (EBU).
GLOSSARY
A European industry consortium with more than 270 members representing broadcasters, administrations, manufacturers and network providers, which proposes solutions to technical and commercial issues affecting video broadcasting using digital techniques.
PRACTICE NOTES
Digitalisation in the supply chain refers to the shift from manual, paper-based or other analogue processes to integrated digital technologies that enable the efficient movement of goods, information and finances between suppliers, manufacturers, logistics providers and customers. In practice this involves the adoption and integration of digital solutions at all stages of the supply chain from sourcing and procurement through to production, distribution and delivery. Digitalisation is achieved by using a range of technology including data analytics, automation, artificial intelligence (AI), blockchain and the Internet of Things (IoT). The importance of digitalisation has grown as supply chains have become increasingly volatile, complex, opaque and cost-intensive. Supply chains today face significant risks from factors including global disruptions (such as the COVID-19 pandemic, geopolitical tensions and trade restrictions, including tariffs), extreme weather and climate-related events, regulatory pressures and increasing expectations around transparency. In this environment, the adoption of digital technologies is becoming essential not only for operational efficiency but also to gain long-term strategic advantage. When implemented effectively, digitalisation enables businesses to predict, control
NEWS
Immigration analysis: In this article, Supinder Singh Sian, Andrew Osborne and Kathryn Denyer of Lewis Silkin LLP look at some examples of the UK’s immigration and nationality digitalisation programme, focusing on the implications for migrant workers, their sponsors, and business visitors.
GLOSSARY
The process of converting information in analogue form into digital form.
NEWS
In a reply dated 1 October 2024 to a joint letter from organisations including the Immigration Law Practitioners’ Association (ILPA) titled ‘Grave Concerns Regarding Digital-only Immigration Status’, the Minister for Migration and Citizenship, Seema Malhotra MP, has sought to respond to major concerns raised on the potential impacts of replacing physical immigration documents with digital-only proof of status. She has set out a list of measures being taken in this regard, including reducing the evidential burden for No Time Limit (NTL) applications.
PRACTICE NOTES
This Practice Note provides a structured overview of how the UK and EU legal frameworks are evolving to accommodate digital bonds. It discusses commonly used terms and the digital bonds transaction lifecycle, to include the key documentation required in issuing digital bonds, with a focus on smart contracts. It further highlights what practitioners should be aware of when transacting with digital bonds. Summary Digital bonds are now legally recognised in the UK and EU, provided that the issuing structure aligns with the applicable securities regime Prospectus Regulation and/or the Regulation (EU) 2023/1114 on markets in crypto-assets (MiCA) and that the supporting distributed ledger technology (DLT) infrastructure is covered by the relevant regulator or sandbox. Practitioners must distinguish early between native digital bonds and tokenised traditional bonds, as this choice drives property law treatment, custody and settlement risk and conduct their regulatory mapping early, at the structuring stage of the issuance. In most digital bond structures, smart contract code operates as an execution mechanism for agreed outcomes rather than as the source