CFO's headache: surety bonds

Article Abstract:

Heavy equipment contractors (HEC) need large contracts to offset the cost of the equipment they use on the job. Surety bonds give the firms the mobility to attract the contracts they need, and the chief financial officer (CFO) of an HEC firm is the one responsible for securing the bonds. The CFO must make sure a firm maintains a financial position that is acceptable to bonding companies. Currently, however, there is a shortage of sureties, and there is a need to re-evaluate the process that is used to evaluate firms which want bonds. For example, HEC firms should not be forced to be evaluated on the basis of working capital because relying on working capital to set bonding capacity is a short-sighted method. Other areas that should also be reevaluated include leases and debt to equity.

Management, Construction industry, Surety bonds

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Stipulation cross-contamination: the use of prior stipulations in subsequent proceedings

Article Abstract:

The Tax Court has generally allowed prior stipulations between the IRS and the taxpayer to be used in subsequent proceedings, but until recently, the Court had refused to allow prior stipulations between the IRS and third parties to be given legal effect. Under the doctrine of judicial estoppel, the Court will recognize prior stipulations to the extent that the parties intended that the stipulation would have effect and that inconsistency would result otherwise. The Tax Court's memorandum opinion in Shackleford established the use of judicial estoppel in third party situations.

Courts, US Tax Court, United States, Laws, regulations and rules, Practice, Tax appeals, Tax courts, Res judicata

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Wage wallop

Article Abstract:

Ontario's McGuinty government decided to raise minimum wage to C$8 per hour. But for food service operators, the increasing cost of labor could require restaurateurs to cut back on employee hours and eliminate jobs in order to meet the wage increase. A study by the University of Toronto in 2004 showed that a 10% increase in minimum wage could reduce youth employment by 4%.

Canada, Personnel administration, Compensation and benefits, Food service employees, Food service workers

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