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What M&A trends will transform the 2024 insurance landscape?
It is widely accepted that 2023 was one of the worst years in recent memory for M&A activity.
Global | Publication | December 2017
The UK has announced that it will introduce a new tax from April 2019 which will apply to payments of royalties and certain other payments, such as franchise fees, between members of international groups, where there is a link between the payments and the UK. The tax is to be imposed by way of a deemed withholding on the payer, even if the payer is based outside the UK.
This measure is part of the UK’s wider response to the challenges it sees with the taxation of the digital economy. However this new tax is not restricted to just the digital economy – and will apply to those businesses with high value intellectual property or intangible assets (for example, brands) held offshore.
The UK Government has indicated in their Position Paper on “corporate tax and the digital economy” that they are considering further measures to ensure that digital companies are taxed appropriately. Businesses should consider whether their existing arrangements are still appropriate in the light of possible future changes.
The UK propose to extend the circumstances in which a payment of royalties, or certain other payments are subject to withholding tax. The new charge will apply to royalty and other payments between group members. In particular:
The consultation confirms that the UK will not be amending the existing rules which impose withholding tax on royalties or diverted profits on royalties paid by a non-UK company in connection with an avoided permanent establishment in the UK. Instead, where a taxpayer finds itself subject to one or more of the new rules or the existing regimes, he will taxed under whichever set of rules results in the highest tax charge.
The UK Government is consulting on these proposals set out in this briefing until 23 February 2017. We would be delighted to discuss the practical impact of these proposals with you or to discuss the Government’s position paper on “corporate tax and the digital economy”.
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It is widely accepted that 2023 was one of the worst years in recent memory for M&A activity.
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The ongoing conflicts and further geopolitical tensions in Eastern Europe and the Middle East, coupled with upcoming elections in a number of key countries including the US and the UK, make 2024 challenging to predict what impact this will have on the insurance sector.
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On 6 September 2022, the European Commission (EC) prohibited Illumina’s acquisition of Grail, bringing to an end the administrative stage of a legal saga that has attracted interest beyond competition law specialists.
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