New legislation creating the financial asset securitization investment trust provides favorable tax treatment of this investment vehicle, but adds costs
Article Abstract:
The Small Business Job Protection Act of 1996 contains a provision creating the financial asset securitization investment trust (FASIT), a securitization vehicle simplifying the regime for securitizing revolving debt and its taxation. The structure is largely modeled on the real estate mortgage investment conduit enacted in 1986. Congress burdened the new structure with costs which may outweigh the intended benefit. These burdens relate mainly to requiring the recognition of built-in gain in cases which will artificially inflate the gain and lead to the taxation of phantom income. Provisions of the FASIT are listed.
Publication Name: The National Law Journal
Subject: Law
ISSN: 0162-7325
Year: 1997
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States now use favorable laws to lure trusts; to analyze the appropriate situs for their trusts, lawyers should compare home state laws with those of 'designer' states
Article Abstract:
Trusts are no longer just a mechanism used by the extremely wealthy but are used by all kinds of people to prepare for certain emergencies. Choosing which state will be the situs for a trust can save taxes and affect future generations to benefit from the choice. Lawyers choosing the situs will want a state with clear rules and judicial precedents as well as favorable trust and fiduciary tax rates. Counsel should also compare the laws of their state with those of one of the 'designer' jurisdictions. Questions to ask in selecting a state as situs for the trust are listed.
Publication Name: The National Law Journal
Subject: Law
ISSN: 0162-7325
Year: 1997
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Kazakhstan leading as metal hub: laws favorable to investment from abroad put the Central Asian republic ahead of Russia
Article Abstract:
Kazakhstan's July 22 Law on Precious Metals and Stones extends its lead over other members of the Commonwealth of Independent States as an attractive venue for foreign investors. The law, which builds on and takes precedence over the Kazakh Licensing Law, lets licensed foreigners and domestic bodies with foreign participation to export precious metals processed from Kazakh raw materials. It also establishes a domestic market for precious metals, and limits state monopolies. It is, however, less specific regarding stones.
Publication Name: The National Law Journal
Subject: Law
ISSN: 0162-7325
Year: 1995
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