The candidates main differences centred on taxation but they agreed on the importance of examining the provinces finances during the debate at the Niverville Heritage Centre in front of about 50 voters.

Martin, who became the ridings MLA in a 2014 by-election, reiterated his partys pledge an elected Progressive Conservative government would roll back the PST by one percent within their first term.

Falk replied the Liberals would keep the PST at 8 percent but give all of the revenue raised to municipalities to spend as they wish.

Why should we as the province tell municipalities what to do? asked Falk, who after crunching the numbers following the debate estimated Niverville, which is approaching 5,000 citizens, would receive more than $1 million in revenue per year.

On the payroll tax, Falk described it as a ludicrous levy the Liberals would repeal after balancing the budget. Martin agreed with Falk that the tax should not exist but said a Progressive Conservative government sees rolling back the PST as its first taxation priority.

The candidates agreed it will be a balancing act to slay the provinces deficit and focus on infrastructure priorities.

Im not going to underestimate the challenges that are ahead, but a balanced budget is something we have to move towards, said Martin.

Falk concurred. Were not going to increase taxes, so its not going to happen overnight, he said of cutting the deficit.

The Morris constituency is seen as a Tory stronghold, with Martin earning the support of nearly seven out of 10 voters in the by-election, but the inclusion of former Niverville councillor John Falk has dramatized the race. Falk is well-known in rapidly growing Niverville, serving as a town councillor for seven years until he stepped down to seek the provincial nod.

Health care was also touched on in the debate, with Martin explaining of the 25 beds at Morris hospital, 17 are occupied by individuals waiting for personal care beds. His party has pledged to build 1,200 beds over eight years.

Martin said this would be one step toward improving health care, but dont let any politician tell you it will be a quick fix, it wont, he said.

Falk advocated for the child care deficiency in places like Niverville, saying the Liberals would ensure more child care spaces are built.

When asked what their priorities would be if elected MLA, Falk said he would conduct roundtable discussions with as many interested communities and organizations he could drum up to ensure he would make the right decisions.

Martin said he and a PC government would meet the provinces challenges head-on.

Weve had 17 and a half years of mediocrity, 17 and a half years of believing that the only solution to anything is simply throwing more money at it, he said.

The debate was hosted by the Niverville Chamber of Commerce.



GURGAON: A team of Deputy Excise Taxation Commissioner (East) Gurgaon on Monday raided the premises of a firm after a complaint was received at the departments headquarter in Chandigarh. Shyamal Mishra, Excise Taxation Commissioner sent that complaint to the DETC (East) for enquiry and verification.

BOAO, March 23. /TASS/. Legislative changes in Russia contemplating export duties cut and higher mineral extraction tax may take place in 2017, Deputy Prime Minister Arkady Dvorkovich said on Wednesday.



A bill recently introduced in the New York State Assembly would impose additional tax on carried interest.1  The taxation of carried interest has been widely discussed over the last decade, with a number of bills introduced (but not enacted) in Congress that generally would tax such carried interest at ordinary Federal income tax rates (rather than at lower capital gain rates).  The Assembly bill, which notes that it is an attempt to get around the considerable gridlock at the federal level, generally would impose New York state franchise or income tax on investment managers#39; carried interests.

Overview

Carried interest is the term given to an investment manager#39;s share in the net profits of an investment fund in excess of any amount contributed by the manager to such fund.  When an investment manager organizes a fund and provides management services to it, the manager usually receives a share of the fund#39;s future net profits (a carried interest), along with a fixed management fee.  The investors who provided most of the capital for the fund share the rest of the fund#39;s future profits.  Under current law, each investor#39;s share of the fund#39;s net profits, including the investment manager#39;s share, generally is taxed at the lower rate for capital gains (rather than at ordinary income tax rates).

Proposed Changes to New York Law

The Assembly bill makes three main changes to the taxation of carried interest under New York law.

Investment Management Services – The bill defines a new category of investment management services that are subject to a new taxation regime.  Investment management services generally are defined as the provision of a substantial quantity of advisory or management services with respect to specified assets (ie, securities, real estate held for rental or investment, interests in partnerships, commodities or options or derivative contracts with respect to any of the foregoing).2  A manager will not be deemed to provide investment management services if 80% or more of the average fair market value of the partnership, S corporation or other entity#39;s specified assets during the taxable year consists of real estate.

Amount of Income Affected – The bill will recharacterize a partner#39;s distributive share (or pro rata share, in the case of an S corporation shareholder) of income, gain, loss and deductions, including guaranteed payments, in excess of the amount the partner or shareholder would have received if the partner or shareholder had not provided investment management services (at least zero).

Recharacterization of Income – The bill would recharacterize income earned from the provision of investment management services from intangible income to service or business income (as the case may be) by amending the New York State nonresident income tax and the corporate franchise tax statutes.  This change would move income earned by a nonresident individual partner or corporate partner as a result of providing investment management services from a category that was not subject to New York tax into a category that is or can be subject to New York tax.

Effective Date

If enacted, the bill would not become effective until the enactment of legislation having an identical effect in Connecticut, Massachusetts and New Jersey.  When this condition is met, the bill would take effect immediately, without any delay or interim period to allow taxpayers to prepare for compliance.

Takeaways

Given its status as a perennial topic of tax reform discussion, it would not be surprising if some form of carried interest legislation eventually is enacted by Congress.  The New York State Assembly bill suggests a novel multijurisdictional approach to changing the taxation of carried interest at the state level that, if enacted, would increase the possibility of additional New York State tax on partnership and LLC services income.

Footnotes

1 New York Assembly Bill A. 9459 (2016).

2 Assembly Bill 9459 defines investment management services as a substantial quantity of any of the following services provided to a partnership, S corporation or other entity:   (i) advising on the advisability of investing in, purchasing, or selling any specified asset, (ii) managing, acquiring or disposing of any specified asset, (iii) arranging financing with respect to acquiring any specified asset, or (iv) any activity in support of (i) through (iii).

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.