accounting – Medielys http://medielys.com/ Tue, 11 Jan 2022 18:43:49 +0000 en-US hourly 1 https://wordpress.org/?v=5.8 https://medielys.com/wp-content/uploads/2021/08/favicon-2-150x150.png accounting – Medielys http://medielys.com/ 32 32 BNPL Industry Consolidation: What Does It Mean? https://medielys.com/2022/01/11/bnpl-industry-consolidation-what-does-it-mean/ Tue, 11 Jan 2022 01:01:42 +0000 https://medielys.com/2022/01/11/bnpl-industry-consolidation-what-does-it-mean/ Buy Now, Pay Later (BNPL) services have grown significantly, especially since the onset of COVID-19, which has accelerated digitization, merchant adoption and consumer demand. Collaboration can be mutually beneficial for banks, financial institutions and fintechs As customers opt for new online payment methods, more and more online and in-store merchants are joining BNPL platforms. Additionally, […]]]>

Buy Now, Pay Later (BNPL) services have grown significantly, especially since the onset of COVID-19, which has accelerated digitization, merchant adoption and consumer demand.

Collaboration can be mutually beneficial for banks, financial institutions and fintechs

As customers opt for new online payment methods, more and more online and in-store merchants are joining BNPL platforms. Additionally, BNPL’s financial sector is heating up as more young people turn to these services, with 36% of 21-25 year olds using BNPL in the United States, according to Forbes.

With the growth of the largely unregulated BNPL sector and the accumulation of untraceable debt, the regulator sits down and takes note. Regulation is inevitable and will displace the entire BNPL space, leaving a void in the market for compliant vendors. There is a window of opportunity to fill that void, and that’s where collaboration comes in.

According to data from McKinsey’s consumer loan pools, fintechs currently hold the majority of BNPL’s market share and have already captured around $ 8 billion to $ 10 billion in annual consumer finance revenue.

However, banks have actively moved into space. Since they are already in compliance with financial regulations, they just need a way to bring their competitive consumer finance programs to the point of sale (POS) – that is, when looking to collaborate. with fintechs.

Therefore, consolidation will be driven by banks and financial institutions seeking to leverage fintech technology solutions to become powerful BNPL players, and not just fintechs rushing to partner with banks to get started. compliance.

Growing benefits for both parties result in consolidations and cross-sector partnerships. Successful partnerships are not only those that enable regulatory compliance, but also those that rely on aligning values ​​and enhancing each party’s core strengths.

The arrival of acquisitions

Mergers and acquisitions (M&A) typically involve one entity realizing that another company is bringing value and potential. The result is often that one company swallows another. In my opinion, however, the real power of consolidation lies in recognizing and conserving the true nature of each business to contribute to mutual growth.

For example, the acquisition can be restrictive since the entire mission of the secondary entity often serves the primary purpose of the business rather than serving its own objectives of innovation and growth.

Real partnerships are formed

On the other hand, in the case of partnerships, the collaborating companies also benefit from the audience and reach of the other. Instead of inhibiting each other’s growth, a true partnership stimulates growth and encourages cross-pollination from one to the other. I have always found that true collaboration is based on mutually beneficial partnerships and shared values.

An example of such a partnership is Klarna and Stripe, two of the world’s largest private fintech companies, which have teamed up while maintaining their own independent identities. Stripe has entered into a strategic partnership with Klarna to offer the Swedish company’s BNPL payment method to its merchants without acquiring the company.

Without these types of mutually beneficial partnerships between banks and fintechs in the BNPL space, banks will not only lose lending volume but also consumers by turning to fintech companies. By partnering with FinTech providers, not necessarily through acquisition, banks can win back and keep customers close and strengthen customer relationships, value and experience.

Global expansion for victory

Recently, Global Processing Services raised over $ 300 million to accelerate the global revolution in technology and fintech, showing the important role of the fintech industry in the world.

While some may argue that the top performing fintechs retain a niche in terms of markets and products, others favor expansion.

Global expansion into different markets, through consolidations and partnerships, fuels innovation and original thinking as companies face new challenges and must find solutions to the demands of different markets. It also means that companies can apply fundamental lessons from one market to another and expand their customer base by partnering with entities with a global presence.

As traditional financial barriers fall and the world simultaneously becomes more interconnected, new cross-border collaborations and partnerships between fintech companies and banks will be essential for the future of the financial services industry and the tech sector.

COVID-19 has also proven that it is not just large corporations and financial institutions that can adapt to a “digital first” approach. In fact, their timeframes for new product introductions need to speed up dramatically, which can be achieved through partnerships forged overnight. Expect to see a lot more happening – very quickly.

]]>
Loan consolidation company relieving Americans of payday loan debt amid Covid-19 pandemic https://medielys.com/2021/08/14/loan-consolidation-company-relieving-americans-of-payday-loan-debt-amid-covid-19-pandemic/ Sat, 14 Aug 2021 07:00:00 +0000 https://medielys.com/2021/08/14/loan-consolidation-company-relieving-americans-of-payday-loan-debt-amid-covid-19-pandemic/ Oakland Park, Florida (PRWEB) August 14, 2021 Covid-19 hit the world by surprise in March 2020, and since then life has taken a dark turn. This pandemic has gripped the world by the neck, from the loss of families and friends to the virus, to job losses and business failures. As businesses close their doors […]]]>


Covid-19 hit the world by surprise in March 2020, and since then life has taken a dark turn. This pandemic has gripped the world by the neck, from the loss of families and friends to the virus, to job losses and business failures. As businesses close their doors and citizens face wage cuts, payday loans have become the order of the day.

Payday loans are advances that lenders give to individuals, which they repay when they receive their paycheck. They are suitable for covering medical emergencies, accidents and unforeseen bills. But they can be a trap if you borrow more money than you can afford. Defaulting on such loans comes with outrageous rolling charges and insane interest.

These loans are attractive and tempting. Creditors know how to target the weak points of consumers, leaving them no choice but to seize them. They use persuasive language to make the deal seem too good to resist. Here are some of the reasons payday loans are great:

  • They have a high likelihood of approval
  • Lenders offer adjustable amounts of money
  • Payday loans come quickly in an emergency
  • When used well, payday loans can be a reliable way to supplement your sources of income.

Although sometimes it is inevitable to borrow these loans, consumers should avoid them like the plague. They have higher interest rates than regular bank loans. “Some companies will entice you with this offer and destroy you with the interest rate. If you have fallen into this trap, do not despair, there is still hope ”, advises National payday loan relief.

Most of the people know the disadvantages of these payday loans, but they borrow anyway. This is because they seem to be an instant helping hand. They are convenient because they do not require guarantors and credit checks. Plus, they don’t feel like a burden. Some people feel embarrassed when borrowing from family and friends, so they opt for payday loans.

“A lot of people love payday loans because of their embarrassment; Do you know that uncomfortable feeling that comes with borrowing from family and friends? Payday loans don’t come with so much shame, ”National Payday Loan Relief (NPDLR) noted. It is advisable to avoid payday loans. Instead, consider other alternatives, like asking friends and family for help. If the payday loan is inevitable, stick to one lender.

“Payday loans tend to be risky, but depending on the situation, it can help under the circumstances. The bottom line about payday loans is that you are trying to find an alternative. If you have to use a payday loan, try to limit the amount and only borrow what you can afford to pay with your next paycheck, and of course, still have enough to make it to the next payday. », Advises NPDLR.

So what about after getting stuck in a payday loan cycle debt? Do you accept defeat and live a miserable paycheck life?

There is a way out of payday loan debt. The NPDLR has developed various initiatives that help you pay off your debts in less time and even at lower rates. First, they have a payday loan consolidation program which allows you to pay multiple loans simultaneously with a single loan.

“Debt consolidation is a service offered by loan relief service providers to facilitate debt refinancing by taking a loan from the consolidator and using it to repay multiple loans owed to other debtors,” explains NPDLR. This program is what people struggling with debts from multiple creditors need to regain their financial freedom. This shortens the repayment time and the final amount you repay.

“Debt consolidation is a relief for personal finances because it allows you to pay off multiple debts simultaneously using a single low interest loan. It also relieves you from nagging phone calls from lenders, among other benefits. Wondering how this loan consolidation program works? It’s pretty self-explanatory. The consolidator takes all the responsibility for the debt clearance, such as negotiating better rates, payment schedule, etc.

“The consolidation company will take care of the rates, fees, renegotiation of terms and all that is expected of you is to pay off your debt in friendly monthly installments through the loan consolidation company.” Why pay a consolidation company to do all of this when you can negotiate your way to pay low interest? To the extent that you can do these things yourself, a consolidator familiar with payday loans and the rules governing lending institutions has a better chance than a layman. “Obtaining such an agreement can be difficult if you try to renegotiate your loan with the creditor on your own,” warns the NPDLR.

There is another solution for consumers with multiple payday loan debts; debt settlement. You use this method as a last resort, after trying other ways to settle your payday debts. Here, you hire a debt management professional or a legal firm to advise you on the options available. It is not easy to negotiate debt cancellation and other settlement options on your own; that’s why you need to look for an expert. “While it is quite possible to do this yourself whenever dealing with complex legal and financial matters, it is always recommended that you contact a lawyer or professional firm who has experience in this type of situation. questions, ”advises NPDLR. .

“Once you have negotiated an acceptable agreement that both parties have signed on, you can finalize the matter. Sometimes this can include writing off the entire debt, but more often there will be a payment plan for a partial amount of the original amount. It’s a good way to save money while reducing monthly payments to a more manageable level. The lower monthly payments leave room for more savings. Saving money is a habit for all of us if accepting payday loan debts interferes with this crucial habit. The money saved gives us hope for a better future and the ability to meet a need if it arises.

“Money is a guarantee that we can have what we want in the future. Although he does not need anything at the moment, it ensures the possibility of satisfying a new desire when it arises, ”said Aristotle. Suzie Orman, one of the bestselling personal finance authors, says you need to correct the root cause of your financial problems to gain financial freedom. This is why it is essential to speak to an expert for legal and financial advice. “The only way to permanently take control of your financial life is to dig deep and fix the problem at the root,” wrote Orman, who is the author of over 25 million books on finance.

Payday loans are at the top of the list of root causes of financial problems for most Americans. When you get the first advance, you pay it off with your next paycheck. If the remaining amount cannot support your lifestyle until the next payday, you borrow another loan. This cycle cannot save you a dime, and your dream of financial freedom delays another day. The main cause of debt accumulation is a lack of budgeting, which results in overspending on unnecessary things. Getting financial advice helps you avoid falling into the same trap by developing better financial habits and comprehensive financial advice.

“As a debt settlement company, NPDLR feels obligated, as our duty, to educate and educate our clients on how to avoid making the same mistake twice. We provide debt advice. financial and credit counseling to all those who wish to learn and improve each day. Financial credit counseling will give you an idea on how to improve your finances and your credit score in your future spending, ”noted NPDLR. financial advisor can even help you with other alternatives to pay off your payday loans, such as mortgage refinancing. This is a very fragile subject and requires expert advice to save money. If you go for it blindly , you risk getting into more debt.

“When you refinance your loan, you’ll want to get a better deal. When you decide to consider how refinance my mortgage, you’ll want to make sure you’re making the right decisions for that, ”advises NPDLR.

There are other alternatives to turn to when payday loan debt gets out of hand. These are:

  • Financial Debt Management Services
  • Bankruptcy filing
  • Financial debt and credit card advice
  • Payday Loan Debt Settlement

NPDLR offers other loan and credit management services to help clients take charge of their financial well-being. These include:

  • Debt repayment calculator that gives customers an overview of their accumulated debt and payment schedule
  • Credit card debt relief program to help credit card debtors pay off their credit card loans
  • Payday Loans Map to help clients find payday loans and debtor protection areas in their state
  • Debt Settlement Agreement Template Clients Can Use to Write Their Debt Settlement Agreements

About National Payday Loan Relief

NPDLR is a debt settlement company known across the United States for helping you get out of payday loan debt. They help you recover from payday loan debt through their loan relief and consolidation program. Their fundamental values ​​are to be united, reliable, well informed and negotiators. The mission of the NPDLR is to be an efficient and reliable payday loan assistance service provider, helping Americans in all states. They also pride themselves on over 20 years of professional service, with financial experts and qualified lawyers.

For more information on National Payday Loan Relief and Debt Consolidation Services, visit their website or contact them by phone or SMS at (888) 407-4521 or email: info @ nationalpaydayloanrelief .com. Their physical address is 3221 NW 10th Terrace, Oakland Park, FL 33309.



Source link

]]>
Vs student loan consolidation. Refinancing https://medielys.com/2021/08/12/vs-student-loan-consolidation-refinancing/ Thu, 12 Aug 2021 15:33:00 +0000 https://medielys.com/2021/08/12/vs-student-loan-consolidation-refinancing/ You cannot consolidate federal loans; private student loans are not eligible for the program. Refinancing student loans may earn you a lower rate than your original loan terms. When you refinance federal loans with a private lender, you lose some key borrower protections. Learn more about Insider’s student loan coverage here. The difference between loan […]]]>


  • You cannot consolidate federal loans; private student loans are not eligible for the program.
  • Refinancing student loans may earn you a lower rate than your original loan terms.
  • When you refinance federal loans with a private lender, you lose some key borrower protections.
  • Learn more about Insider’s student loan coverage here.

The difference between loan consolidation and refinancing can be confusing, especially since people sometimes use the terms interchangeably. However, these are two different processes, and depending on your financial goals, one may be better for you than the other.

What is the student loan consolidation?

You can consolidate or combine multiple federal loans into one loan with a direct consolidation loan. There is no charge to consolidate your federal loans. If a private company offers to help you apply and requires a fee, it is a red flag. The consolidation of student loans does not require a credit check.

Keep in mind that you won’t save money by consolidating your student loans, but that doesn’t mean you can’t benefit from the process. You’ll have fewer payments to track each month, and if you’re unhappy with your loan manager, you’ll get a new one upon consolidation.

If you consolidate loans other than direct loans, you may become eligible for income-tested repayment plans and the forgiveness of public service loans. If you already have direct loans, you can retain these benefits during consolidation.

If you have federal variable rate loans (which were last disbursed in 2006), consolidation will allow you to switch them to fixed rate loans. You can also reduce your monthly payments by opting for a longer repayment term, although this option will cost more in interest overall.

However, when you consolidate your loans, any unpaid interest becomes part of the principal balance of your new loan. This means that interest can accumulate on a larger principal balance than if you had not consolidated.

What is student loan refinancing?

If you are looking for a lower rate on your student loans, you will want to refinance them. Depending on your current financial profile, private lenders may offer you better terms than your original loan. Refinancing a student loan will require a credit check and your rates will be based on it.

You can switch from a fixed rate loan to an adjustable rate loan when you refinance, which can allow you to snag a lower rate. However, as the name suggests, variable rate loans can fluctuate and you may end up paying a higher rate than if you had gone for a fixed rate loan.

Use caution before refinancing federal student loans. You will forgo all current and future government borrower protection, such as COVID-19 loan forbearance, currently in place until January 31, 2022, and federal student loan relief programs like loan forgiveness. for the public service.

You will also not be eligible for specific repayment options such as income-based repayment plans, which take into account your specific income and family size when determining monthly payments and protect you in the event of a loss. Job Loss. Your savings on interest might not be worth losing these benefits.

On the other hand, if you are refinancing private student loans, there is almost no downside. There are usually no refinancing fees, and you may be able to get better rates on your new loan, especially if your credit score has improved since you got your original loan.

When deciding between refinancing or consolidating your loans, make sure you know the ins and outs of both processes and choose the one that’s right for you.



Source link

]]>
Razor Energy Corp. Announces Completion of Strategic Acquisition of Light Oil Consolidation at Swan Hills and Adoption by FutEra Power Corp. a stock option plan https://medielys.com/2021/08/12/razor-energy-corp-announces-completion-of-strategic-acquisition-of-light-oil-consolidation-at-swan-hills-and-adoption-by-futera-power-corp-a-stock-option-plan/ Thu, 12 Aug 2021 07:00:00 +0000 https://medielys.com/2021/08/12/razor-energy-corp-announces-completion-of-strategic-acquisition-of-light-oil-consolidation-at-swan-hills-and-adoption-by-futera-power-corp-a-stock-option-plan/ CALGARY, Alberta, August 12, 2021 (GLOBE NEWSWIRE) – Razor Energy Corp. (“Razor” or the “Company”) (TSXV: RZE) is pleased to announce that it has completed the acquisition of certain of the assets of interest in its central area of ​​Swan Hills, Alberta (the “Assets ) For a total purchase price of $ 5 million in […]]]>


CALGARY, Alberta, August 12, 2021 (GLOBE NEWSWIRE) – Razor Energy Corp. (“Razor” or the “Company”) (TSXV: RZE) is pleased to announce that it has completed the acquisition of certain of the assets of interest in its central area of ​​Swan Hills, Alberta (the “Assets ) For a total purchase price of $ 5 million in cash, subject to certain closing adjustments (the “Acquisition”) as previously announced in its August 4, 2021 press release.

The acquisition was financed by Arena Investors, LP (“Arena”) through an amended term loan agreement. Arena is an institutional asset manager with $ 2.2 billion in committed assets under management that specializes in providing innovative capital solutions for mid-market companies.

The acquisition enables Razor to profitably add industry-leading, long-term light oil reserves with a base ten percent annual decline, at low risk (41o API), production and cash flow supported by improving commodity price environment as crude oil supply and demand returns to equilibrium.

Meanwhile, FutEra Power Corp. (“FutEra”), a subsidiary of Razor, continues to build our first geothermal project in Swan Hills. FutEra is currently examining other projects, including solar, wind and geothermal power at the wellhead. In addition, FutEra recently commissioned its wholly owned 10 petahash bitcoin mining operation, which includes the supply of self-generated electricity and the mining facility. Additionally, Razor has now completed construction of its Virginia Hills soil treatment facility, which will be operational in the third quarter of 2021.

Razor and FutEra continue to identify and seize opportunities to unleash alternative energy sources while measurably improving the environmental and social impacts of our business.

Further information regarding this acquisition, Razor’s conventional oil and gas operations and FutEra’s ongoing geothermal and innovative projects can be found in our updated corporate presentation available at www.razor-energy.com.

FutEra adopts a stock option plan

The Company also announces today that the Board of Directors has approved the adoption of a fixed stock option plan (the “FutEra Option Plan”) for FutEra.

Under the FutEra option plan, FutEra may grant options to acquire up to a total of 284,000 common shares of FutEra (each a “FutEra share”), subject to the terms of the FutEra option plan and applicable securities laws. It is expected that options will be granted by the FutEra Board of Directors (the “FutEra Board”) to certain FutEra officers and employees for retention purposes and in recognition of their continued efforts to help FutEra become a leader. in Alberta. clean electricity production by upgrading existing assets with new and innovative solutions. Once granted, options will be subject to vesting conditions as determined by FutEra’s board of directors, including an expected term of five years from the date of issue.

The FutEra Option Plan remains subject to the approval of the TSX Venture Exchange.

About razor

Razor is a publicly traded junior oil and gas development and production company headquartered in Calgary, Alta. Focused on acquiring, then improving and producing oil and gas from properties primarily in Alberta. The company is led by experienced management and a strong and committed Board of Directors, with a long-term vision of growth focused on efficiency and cost control in all areas of the business. Razor currently trades on the TSX Venture Exchange under the symbol “RZE.V”.

www.razor-energy.com

About FutEra

FutEra leverages the innovation and experience of Alberta’s resource industry to create transitional energy and sustainable infrastructure solutions for commercial markets and communities, in Canada and globally . Currently, FutEra is developing a co-produced geothermal and natural gas hybrid power project in Swan Hills, Alberta.

www.futerapower.com

For additional ImFelmaplease vsoNTact:

Doug bailey

Kevin braun

President and CEO

Financial director

Razor Energy Corp.
800, 500-5e Ave SW
Calgary, Alberta T2P 3L5
Telephone: (403) 262-0242

READER ADVISORIES

FORWARD-LOOKING STATEMENTS: This press release may contain certain statements which may be considered as forward-looking statements. These statements relate to possible future events, including, but not limited to, the Company’s investment program and other activities such as the development of geothermal projects and other innovative projects on the plan. environmental and social. All statements other than statements of historical fact may be forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as “anticipate”, “believe”, “expect”, “plan”, “estimate”, “potential”, “will”, “Should”, “continue”, “may”, “objective” and similar expressions. Forward-looking statements are based on certain key expectations and assumptions made by the Company, including, but not limited to, expectations and assumptions regarding the availability of capital, applicable legislation, obtaining required regulatory approvals, ” timely execution by third parties of the obligation, the success of future drilling and development activities, the performance of existing wells, the performance of new wells, the Company’s growth strategy, general economic conditions, availability of required equipment and services, prevailing commodity prices, price volatility, price differences and the actual prices received for the Company’s products. While the Company believes that the expectations and assumptions upon which forward-looking statements are based are reasonable, forward-looking statements should not be relied upon because the Company cannot guarantee that they will prove to be correct. Because forward-looking statements deal with future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently expected due to a number of factors and risks. These include, but are not limited to, risks associated with the oil and gas industry and geothermal power projects in general (e.g. variability in geothermal resources; such as uncertainty in reserve estimates; uncertainty of estimates and projections relating to production, costs and expenditure, and risks to health, safety and the environment), fluctuations in electricity and raw material prices and exchange rates, changes in legislation affecting the oil, gas and geothermal industries and uncertainties resulting from delays or potential changes in plans for exploration or development projects or capital expenditures. In addition, the Company cautions that COVID-19 could continue to have a material adverse effect on global economic activity and global demand for certain commodities, including crude oil, natural gas and NGLs. , and could continue to cause volatility and disruption of global supply. chains, operations, people mobility and financial markets, which could continue to affect commodity prices, interest rates, credit ratings, credit risk, inflation, business, financial conditions, results of operations and other factors relevant to the Company. The duration of the current volatility in commodity prices is uncertain. Please refer to the risk factors identified in the Company’s Annual Information Form and MD&A which are available on SEDAR at www.sedar.com. The forward-looking statements contained in this press release are made as of the date hereof and the Company does not undertake to publicly update or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

ADVISORY INFORMATION ON PRODUCTION: Unless otherwise stated herein, all production information presented herein is presented on a gross basis, which is the direct interest of the Company before deduction of royalties and without including royalty interest.

BARRELS OF OIL EQUIVALENT: The term “boe” or barrels of oil equivalent can be misleading, especially if used in isolation. A boe conversion ratio of six thousand cubic feet of natural gas per barrel of oil equivalent (6 Mcf: 1 barrel) is based on an energy equivalent conversion method primarily applicable at the burner tip and does not represent an equivalence of value at the wellhead. In addition, since the value ratio based on the current price of crude oil, relative to natural gas, is significantly different from the energy equivalence of 6: 1; using a 6: 1 conversion ratio can be misleading as a value indication.

Or the TSX Vemture EXcash or his Rregulation Servivses Probouncer (like this tuh is defined in the Strategies of the TSX Vemture EXchange) onevsvsephis responsibility For adequacy or avscurity of this neversion ws.



Source link

]]>
The Polish Deal: Consolidation Relief and Changes in the Tax Treatment of Debt Financing Costs https://medielys.com/2021/08/12/the-polish-deal-consolidation-relief-and-changes-in-the-tax-treatment-of-debt-financing-costs/ Thu, 12 Aug 2021 07:00:00 +0000 https://medielys.com/2021/08/12/the-polish-deal-consolidation-relief-and-changes-in-the-tax-treatment-of-debt-financing-costs/ The tax changes proposed under the Polish Deal program enshrine in law a method of calculating the limit on debt financing costs that is disadvantageous to taxpayers. They offer a carrot to buyers of shares in the form of a deduction from the tax base of qualifying expenditure on the acquisition of shares as part […]]]>


The tax changes proposed under the Polish Deal program enshrine in law a method of calculating the limit on debt financing costs that is disadvantageous to taxpayers. They offer a carrot to buyers of shares in the form of a deduction from the tax base of qualifying expenditure on the acquisition of shares as part of the consolidation relief, but also a stick in the form of a total ban on treating interest on debt financing obtained from related parties for the acquisition of shares as a tax deductible cost.

An unfavorable method of calculating the limit on debt financing costs

The Corporate Income Tax Act currently provides that CIT taxpayers cannot recognize debt financing costs as tax deductible costs as long as the debt financing costs to be recognized in interest income earned in that fiscal year by more than 30%. tax EBITDA.

In accordance with the CIT Law, excess debt financing costs not exceeding PLN 3,000,000 in a fiscal year are not excluded from tax deductible costs.

“Tax” EBITDA is the excess of total income from all sources of income, less interest income, over total deductible expenses, less the value of depreciation write-offs and non-debt financing costs. included in the initial value of tangible or intangible assets recognized as deductible during a fiscal year.

Thus, it is the amount of the excess of the debt financing costs incurred during the tax year (considered as deductible expenses) over the interest income received during the year, and not the amount of debt financing costs as such, which is the benchmark for excluding debt financing costs.

In tax practice, there are currently two interpretations of how the ceiling on debt financing costs is calculated.

Depending on the tax administration, which takes a position unfavorable to taxpayers, in a given fiscal year, excess debt financing costs can be classified as tax deductible costs up to:

  • 3,000,000 PLN, or
  • 30% of fiscal EBITDA,

the one who is the highest.

On the other hand, the case law of administrative courts reflects a taxpayer-friendly approach, based on a literal interpretation of the provisions in force, according to which:

  • The excess debt financing costs not exceeding PLN 3,000,000 in a fiscal year do not apply at all to the limit of recognition as tax deductible costs.
  • When in a given fiscal year the excess debt financing costs exceeds PLN 3,000,000, the taxpayer may include up to PLN 3,000,000 and 30% of fiscal EBITDA as tax deductible expenses.

The position adopted by administrative courts is of great importance for taxpayers, as in practice it allows them to include in tax deductible costs during a fiscal year up to PLN 3,000,000 more in debt financing costs only under the unfavorable approach of the tax authorities.

The proposed tax changes aim to enshrine in the CIT law the interpretation of tax administration that is disadvantageous for taxpayers.

According to the bill, taxpayers will have to exclude debt financing costs from tax-deductible costs to the extent that the debt financing costs in a fiscal year exceed PLN 3,000,000. Where 30% of fiscal EBITDA.

There is no doubt that these changes would generate additional tax burdens for businesses.

Prohibition to deduct as tax costs the costs of financing the debt of related parties for the acquisition of shares vs the possibility of deducting from the tax base the expenses qualified for the acquisition of shares

The proposed rules provide for:

  1. A total ban on deducting financing costs from related party debt, allocated directly or indirectly to operations on the capital, in particular acquisition or subscription of shares, acquisition of all rights and obligations in a partnership (not a legal person), increases on shares, capital increases or share repurchase of the company in order to redeem them.

The proposed regulation aims to thwart the tax practice of capital groups, where a taxpayer reduces income by recognizing interest on loans from related parties as tax deductible costs and allocates the proceeds of the loan to finance another. related party (for example by making a cash contribution), which results in the reclassification of the loan as equity financing and, therefore, does not generate income for the taxpayer.

  1. Consolidation relief, which would allow taxpayers receiving income other than capital gains to deduct from their tax base the expenses eligible for the acquisition of shares in companies, up to the amount of the taxpayer’s income during a financial year. taxation other than capital gains.

Not only could qualifying expenses be tax deductible under the CIT Act, but they could also (in addition) be deducted from the tax base in the tax year in which the shares are purchased. This deduction could not exceed PLN 250,000 in a fiscal year.

Expenses qualifying for the acquisition of shares would include expenses directly related to the share purchase transaction, incurred for:

  • Legal services for the purchase or valuation of shares
  • Notary fees, court fees and stamp duty
  • Taxes and other public and legal taxes paid in Poland or abroad.

Eligible expenses would not include the price paid for the shares or the debt financing costs associated with such an acquisition.

If, within 36 months of acquiring the shares:

  • The taxpayer or his legal successor disposes of or redeems the shares
  • The taxpayer or his legal successor is put into liquidation or is declared bankrupt, or
  • There are other circumstances provided for by law in which the taxpayer or his successor in title ceases to exist

the taxpayer or his legal successor will be obliged to increase the tax base by the amount of the deduction made during the tax year in which the above event occurred.

The deductibility of eligible expenses would be subject to the following preconditions:

  • The company whose shares are acquired is a legal person and has its registered office or board of directors in Poland or in another state with which Poland has concluded a tax treaty containing a legal basis for the exchange of tax information .
  • The principal object of the business of the company is the same as that of the taxpayer, or the activities of the company can reasonably be regarded as activities supporting the activities of the taxpayer (but the activities of such a company cannot constitute fundraising activities).
  • The taxpayer and the company have exercised this activity for at least 24 months before the date of acquisition of the shares.
  • In the two years preceding the date of acquisition of the shares, the company and the taxpayer were not related entities.
  • In a single transaction, the taxpayer acquires shares in the company for an amount representing the absolute majority of voting rights.

The simultaneous introduction of consolidation relief and the ban on deducting interest on financing debts from related parties is a sign of inconsistency on the part of the promoter of the amendment. On the one hand, it encourages taxpayers to acquire shares in other companies and, on the other hand, it makes it difficult to obtain financing for the acquisition of such shares from related parties.



Source link

]]>
Snowball, Avalanche, or Debt Consolidation – Which Is Better For Debt Elimination https://medielys.com/2021/08/04/snowball-avalanche-or-debt-consolidation-which-is-better-for-debt-elimination/ Wed, 04 Aug 2021 07:00:00 +0000 https://medielys.com/2021/08/04/snowball-avalanche-or-debt-consolidation-which-is-better-for-debt-elimination/ If you are currently in debt, you are probably looking for a way out. Fortunately, you have several options: snowball debt, debt avalanche, and debt consolidation loans. In this article, we’ll cover what each is and their respective pros and cons, so you can choose the one that best suits your financial needs. What is […]]]>


If you are currently in debt, you are probably looking for a way out. Fortunately, you have several options: snowball debt, debt avalanche, and debt consolidation loans. In this article, we’ll cover what each is and their respective pros and cons, so you can choose the one that best suits your financial needs.

What is the debt snowball method?

Debt snowball is a method of debt repayment that prioritizes paying off smaller amounts of debt first. You will continue to pay the minimum amounts on all of your debts to avoid late fees or damage your credit card, but any extra money will go directly to the smaller debt. Once that is paid off, you will focus on the second smallest debt, etc.

Pros and Cons of the Debt Snowball

The debt snowball is very motivating and well suited for people who need the extra encouragement to pay off their debt. However, since you are focusing on the smallest debts rather than the highest interest rates, you might not save that much money overall.

Best for: People who need an extra dose of encouragement to finally cross the finish line debt free.

What is the debt avalanche method?

The Debt Avalanche Method is a repayment method that first focuses on eliminating debt with the highest interest rates. You will still make all of your minimum payments, but instead of the smaller amount, you will be spending your extra money on debt with the higher interest rate. Once this is fully paid off, you will move to the second highest interest rate, and so on.

Advantages and disadvantages of the debt avalanche

The debt avalanche method is the best way to save the most money overall because you will be saying goodbye to those high interest amounts. However, paying off these debts can take some time, which can be daunting for some.

Best for: People who want to save that money and scrap those high interest payments.

What is debt consolidation?

Debt consolidation involves combining multiple debts into one payment which ideally has a lower interest rate. With a debt consolidation loan, you will transfer multiple debts to a single monthly payment with a fixed repayment period.

Pros and Cons of Debt Consolidation Loans

Debt consolidation loans usually have lower interest rates than credit cards, so you can save money. They also make it easier to pay bills, since you only have to worry about one payment per month.

Best for: People who want to make paying their bills easier and saving money at the same time.

Conclusion: which one is right for me?

The best debt elimination strategy is the one that best meets your financial needs and, ultimately, one that you can stick to. Whether you need to pay off your own Oprah debt (debt snowball), a way to ruthlessly save money (debt avalanche), or a method to make paying your bills less of a nightmare. , We have what you need.



Source link

]]>
Africa’s debt dances with China in the creation of the Belt Road Initiative https://medielys.com/2021/05/07/africas-debt-dances-with-china-in-the-creation-of-the-belt-road-initiative/ Fri, 07 May 2021 04:37:24 +0000 https://medielys.com/2021/05/07/africas-debt-dances-with-china-in-the-creation-of-the-belt-road-initiative/ After all, many advanced countries have yet to fully grasp both the imperative of help African countries to develop through such investments and that substantial risk-adjusted returns can be achieved by helping the continent close its long-standing “infrastructure gap”. How the funding works However, that China’s funding for its BRI projects across Africa (as in […]]]>


After all, many advanced countries have yet to fully grasp both the imperative of help African countries to develop through such investments and that substantial risk-adjusted returns can be achieved by helping the continent close its long-standing “infrastructure gap”.

How the funding works

However, that China’s funding for its BRI projects across Africa (as in other emerging markets where the program is ongoing), is mainly made up of loans to governments which are both very large and conditioned by the signatories’ commitments not to fully disclose their conditions, is a source of deep concern. Headlines in recent months on Zambia’s struggle to repay its debt burden to China only shed light on the most recent case.

Whether you applaud or criticize China’s BIS in Africa or elsewhere, especially its impacts on the debt burden of recipient countries, it is essential to assess the motivations and conduct of both sides of these countries. sovereign to sovereign financial transactions: the lender, Beijing, and the borrowing government. This would expose the questionable public policy judgments of the leaders of the African continent who choose to sign to carry such a debt. As the old saying goes: “it takes two to tango.”

Indeed, in many African states (as in other emerging markets) there are large gaps in public governance – a disjunction between the incentives of governing elites and those of society at large. These pre-existing conditions must be taken into account in assessing the roots, effects and potential solutions of the BIS emerging debt crisis in Africa.

We should not be under any illusion that BRI projects in Africa are completely altruistic. To some extent, this feature is reminiscent of previous initiatives by other countries to foster the economic development of nations – albeit largely outside emerging markets – whose economies have been ravaged by war. Think about American Marshall Plan.

Who has more to gain?

There are key elements of the BIS that clearly stand out as having only the most rudimentary cover-ups for Beijing’s pursuit of unspoken (but not hard to guess) motives, including those that benefit China more than they do. to beneficiary countries.

The BRI is China’s vehicle through which it exports excess capacity of, and workers employed by State-owned Communist Party (SOE) enterprises, to whom the Party stands firm for life. It is also what allows Beijing to access raw materials abroad to fuel the Chinese economy.

At the same time, Chinese leader Xi Jinping has been obtuse on the implementation of the BIS, exposing the program’s glaring contradictions. The most important of these is the simultaneous deployment of projects in many countries. This is in contradiction with how China has embarked on its economic reforms since 1978: gradually, in collaboration and through experimentation. These are the key ingredients that Beijing has used over the decades to encourage its own people to believe in and support reforms. Indeed, Xi’s political ambitions for the BRIs lack “Chinese characteristics”.

The evidence from Xi’s tin ear on this is arguably the most obvious in Africa. At last count, BRI programs exist in 36 (or two-thirds of) African states. This shows that through the BRI, China is focusing on the laser to try to shape Africa’s economic development in its own image.

What do Africans think?

Many Africans I have interacted with on the continent over the past two decades appreciate China’s willingness to invest there. But the the real motives of the BIS are now in question by a large part of them. They do not accept the idea that the initiative is simply a vehicle for the exercise of “soft power” by Beijing.

A growing fringe of Africans deeply regret that decisions regarding the selection and design of projects, the configuration of workers employed and the terms of financing of Chinese projects only respond to the interests of the continent’s political elite. . They thus see correctly the BRI exacerbates deep pre-existing national social and political stratification on the continent.

It is the debt financing terms between African governments and the Chinese government that are seen as particularly egregious. Currently, the African countries with the largest Chinese debt are Angola ($ 25 billion), Ethiopia ($ 13.5 billion), Zambia ($ 7.4 billion) ), the Republic of Congo ($ 7.3 billion) and Sudan ($ 6.4 billion).

The negative effects of China’s economic presence

It is bad enough that Chinese lending entities, which are owned by the government, do not disclose the terms of their loans to African countries. It’s even worse than African government leaders also agree with this. After all, the terms of loans to African countries by the IMF, the World Bank and the African Development Bank – all of which are also non-commercial institutions – are regularly made public.

I mention this because many authors mistakenly refer to the Chinese entities that make these loans to African governments and other emerging markets – the strategic Beijing banks, the Development Bank of China, and the Export and Import Bank – like “private” creditors. These entities are about as far removed as possible from global private commercial banks. They should probably be considered “official” creditors.

Worse yet is when China’s presence allows – even seemingly energized – local elites in Africa to move away from the rule of law and reverse pre-existing contracts with established foreign investors for the benefit of Beijing. .

This not only leads to massive and costly investment conflicts, but also has a lasting effect on the reputation and investment climate in the country to attract capital investment from other countries.

Djibouti is the poster child here.

He has flouted the rules of international arbitration for a settlement of investment disputes by unilaterally repealing the 30-year port concession agreement for the Doraleh container terminal that it signed in 2006 with DP World (DPW) of the United Arab Emirates and ceded the control from DPW to China Merchants.

After losing several cases in the matter, including before a tribunal composed of members chosen jointly by the parties under the auspices of the Court of International Arbitration in London, Djibouti is now taking the case to a local tribunal, arguing that domestic law the stipulations of the concession concerning international arbitration are illegal in Djibouti.

At the end of the line

Around the world, the government officials who are most revered by their populations, who are tremendously successful in initiating reforms that boost their countries’ economic growth and leave in their wake an enviable legacy as great government leaders, are those who are always on the lookout for opportunities to instill confidence by adopting transparent conduct. Any African official would therefore do well to tell official Chinese lenders that it is on this basis that they will do business with them under the BRI.

To be clear, I am not naive to think that it will be one of the few leaders of an African country – or of many emerging markets – who will be ready to do so. Many European or American businessmen are also naive or too timid not to oppose the unreasonable trade terms imposed or the supra-competitive prices charged (sometimes in the form of a demand for bribes) by foreign governments, Chinese or others.

Always, the dirty little secret of the BIS is that Beijing is much more desperate to be successful than are the potential beneficiaries. African government leaders – as well as the broader stakeholder group in each country – therefore, rather than behaving like supplicants, should not hesitate to voice their concerns and seriously negotiate with the Chinese on the terms and conditions and the objectives of the BIS.

Who knows, maybe the BIS can help them move forward with their goals and dreams of economic development.



Source link

]]>
South Africa increases vaccine spending in ‘balancing act’ amid debt worries https://medielys.com/2021/05/07/south-africa-increases-vaccine-spending-in-balancing-act-amid-debt-worries/ Fri, 07 May 2021 04:37:24 +0000 https://medielys.com/2021/05/07/south-africa-increases-vaccine-spending-in-balancing-act-amid-debt-worries/ Through Olivia Kumwenda-Mtambo, Mfuneko Toyana CAPE TOWN (Reuters) – South Africa could spend up to 19.3 billion rand ($ 1.33 billion) over the next three years to vaccinate most of its population, the Treasury said on Wednesday , in a “difficult balancing act” intended to contain COVID-19 while avoiding a spiral of debt. FILE PHOTO: […]]]>


CAPE TOWN (Reuters) – South Africa could spend up to 19.3 billion rand ($ 1.33 billion) over the next three years to vaccinate most of its population, the Treasury said on Wednesday , in a “difficult balancing act” intended to contain COVID-19 while avoiding a spiral of debt.

FILE PHOTO: A South African health worker receives the vaccine against the Johnson and Johnson coronavirus disease (COVID-19) at Khayelitsha hospital near Cape Town, South Africa on February 17, 2021. Gianluigi Guercia / Pool via REUTERS / File Photo

The fiscal position of South Africa, which is the African country hardest hit by the pandemic, was already weak before the coronavirus crisis and has deteriorated sharply over the past year, according to the 2021 budget presented. in parliament.

The deficit is expected to more than double to 14% of gross domestic product (GDP) in fiscal year 2020/21, from 5.7% the previous year.

The Treasury said a mass vaccination program would help boost GDP growth to 3.3% this year after a severe 7.2% contraction in 2020.

“This year we are facing an exceptionally difficult balancing act,” the Treasury said.

“On the one hand, a raging pandemic (…) on the other, a weak economy, with massive unemployment, burdened by ailing public enterprises, the highest budget deficit in our history and a debt rapidly growing public. “

The rand hit a 13-month high and bonds rallied after the budget announcement.

The Treasury has lowered its estimate of medium-term gross debt, but it remains relatively high – projected to 87.3% of GDP by 2023/24, from 92.9% estimated in October.

“Certainly, compared to last October, we are in a better place. But our assessment (…) still stands: our public finances are dangerously overloaded, ”Finance Minister Tito Mboweni told legislators.

Africa’s most advanced economy is battling a more infectious variant of the coronavirus, but richer countries have fallen behind in launching their vaccination campaign.

He now plans to step up vaccinations after administering the first doses of Johnson & Johnson’s vaccine last week.

The government plans to vaccinate 40 million people, or two-thirds of the population.

The budget allocates R 1.3 billion for vaccine purchases in the current fiscal year, which ends next month, while R 9 billion is earmarked for medium-term deployment.

“Given the uncertainty surrounding the final costs, it is estimated that R 9 billion could be drawn from the contingency reserve and emergency allocations, bringing the total potential funding for the immunization program to around R 19.3 billion. rands, ”the Treasury said.

MASS WAGE RISK

To support the economy, the Treasury did not provide additional tax revenue in the medium term, removing previously proposed tax measures of 40 billion rand.

Mboweni said the corporate tax rate will be reduced to 27% effective April 1, 2022, from 28% currently.

The Treasury has also planned to reduce local currency bond issuance as it uses more of its existing cash balances.

To increase revenue, fuel taxes will increase by 27 cents per liter, while an 8% increase in excise taxes on alcohol and tobacco products would be implemented.

The Treasury said efforts to reduce the civil service wage bill remained on track.

The civil servant pay freeze put the government on a collision course with public sector unions, which challenged in court the government’s non-payment of increases in April, as agreed in a 2018 wage deal. Labor appeals court ruled in December in favor of the government.

The Civil Servants Association said last month it is challenging the ruling in the Constitutional Court.

“The biggest risk remains the wage bill, which has yet to be negotiated. This is where we have the least hope, ”said Danelee Masia of Deutsche Bank.

Mboweni said the government is working to achieve fair public sector pay when negotiations with unions on a new multi-year wage deal begin later this year.

Adding to the pressure on spending, the budget allocated R31.7 billion to struggling utility Eskom for 2021/2022, while the Land Bank, which supports farmers, received R5 billion in 2021/22 and R 1 billion in each of the following two years.

Additional reporting by Wendell Roelf in Cape Town; Editing by Joe Bavier and Giles Elgood



Source link

]]>
Settlement with state bans debt collection firms in Buffalo https://medielys.com/2021/05/07/settlement-with-state-bans-debt-collection-firms-in-buffalo/ Fri, 07 May 2021 04:37:24 +0000 https://medielys.com/2021/05/07/settlement-with-state-bans-debt-collection-firms-in-buffalo/ Three companies agreed to pay $ 66 million for using illegal tactics to trick people into paying more than they owed. BUFFALO, NY – Buffalo-based debt collection businessmen and their companies have been banned from debt collection. NYS Attorney General Letitia James announced the settlement Thursday in Buffalo. According to the AG’s office, Douglas MacKinnon, […]]]>


Three companies agreed to pay $ 66 million for using illegal tactics to trick people into paying more than they owed.

BUFFALO, NY – Buffalo-based debt collection businessmen and their companies have been banned from debt collection.

NYS Attorney General Letitia James announced the settlement Thursday in Buffalo.

According to the AG’s office, Douglas MacKinnon, his companies Northern Resolution Group, LLC and Enhanced Acquisitions, LLC, as well as Mark Gray and his company Delray Capital, LLC, have agreed to a regulation banning them and their companies, collect their debts and pay more than $ 66 million.

Investigators say MacKinnon, Gray and their companies tried to collect more than consumers were legally required to pay and used illegal tactics to secure payment.

They say the collections often demanded consumers pay an inflated price, forcing them to pay thousands of dollars they didn’t legally owe.

Collectors falsely told consumers they would be arrested for check fraud and prosecuted. They also used identity theft to make it look like they were calling from a government agency.

“There is no tolerance for individuals who use illegal and unreasonable tactics to deceive consumers with their hard-earned money,” Attorney General Letitia James said in a statement. “Not only did the defendants force consumers to pay more than they owed, they falsely threatened to arrest consumers for not complying with these predatory practices. This regulation demonstrates our commitment to protect consumers and I thank the CFPB for its partnership to put an end to this exploitation scheme.

MacKinnon and Gray owned debt collection businesses across the country, but most of the offices were located in the Buffalo Niagara area.

People who feel they have been abused can file a complaint on the the GA website or call (716) 853-0404 and could possibly get their money back.



Source link

]]>
Croatia’s health debt to be financed through reallocation and cost cuts – EURACTIV.com https://medielys.com/2021/05/07/croatias-health-debt-to-be-financed-through-reallocation-and-cost-cuts-euractiv-com/ Fri, 07 May 2021 04:37:24 +0000 https://medielys.com/2021/05/07/croatias-health-debt-to-be-financed-through-reallocation-and-cost-cuts-euractiv-com/ The funds needed to settle the debt of the Croatian health system will be secured through a reallocation and revision of the budget as well as cost reductions, Finance Minister Zdravko Marić said on Thursday. Marić briefed parliament on the debt settlement plan whereby payments to cover part of the debt to drug wholesalers in […]]]>


The funds needed to settle the debt of the Croatian health system will be secured through a reallocation and revision of the budget as well as cost reductions, Finance Minister Zdravko Marić said on Thursday.

Marić briefed parliament on the debt settlement plan whereby payments to cover part of the debt to drug wholesalers in April and May would be secured through budget reallocations, while the government would revise the 2021 national budget in June. .

In two or three weeks, a convergence plan with macroeconomic and fiscal projections will be put on the government’s agenda and the document will serve as the basis for reviewing the budget, Marić said.

He reiterated that the health care debt had increased by an additional 400 million kuna (53 million euros) per month in recent months. The minister said the revenue side of the health budget had performed better than expected, but the expenditure needed to be addressed.

Marić reassured the general public that there was no need to worry about the drug supply. He said the outcome and the agreement reached at Wednesday’s meeting with the drug wholesalers was a short-term solution, and stressed that a long-term solution required reform of the health system. (Željko Trkanjec | EURACTIV.hr)



Source link

]]>