Anti Stuffing Laws

In: Business and Management

Submitted By sly9man14
Words 1507
Pages 7
Midterm 10.20.12

Anti-Stuffing and Net Operating Loss Anti-Stuffing is actually something that I have been whiteness to on a few occasions with an old business partner that I had a acquired. Unfortunately the partnership did not succeed, so I am going to share my love for business and what I had found out about Anti-Stuffing, but not limited to Net Operating Loss companies and how this affects them. Before 1986, the history of capital gain tax came back to one court ruling. This case was General Utilities and Operating Company v. Helvering, 296 U.S. 200 (1935), which resulted in the General Utilities doctrine. Under this doctrine companies could distribute their corporate properties or stock to shareholders without having to pay a capital gains tax at the corporate level. Before this doctrine was repealed courts did not take into account the built in tax liability when determining the value of a company. As a result of this companies were finding ways around these taxes and saving themselves a fair amount of money. In 1986 the Tax Reform Act was passed making it much harder on companies trying to liquidate. It stated that if a company tries to liquidate it must identify its gains or losses at the time of sale, as if it were being sold on the open market. Under this act any such sale will be taxable. This gave us a double-edged sword, as a result of this act. Their two options both would result in losses for the company buying the stock. The first is called “built in gains”, and the second is duplication of loss. An example of the first is; Company A has a stock that has a fair market value (FMV) of $100 and a basis(which is what the stock was originally bought for or started out at) of $50. Company B then buys the stock for $100; now their basis for the stock has become $100. After company B buys the stock, company A sells off its assets…...

Similar Documents

Anti Trust Laws

...antitrust laws. Antitrust laws enable a free market to thrive and flourish without the fear of monopolization. Monopolization in itself isn’t a bad thing. There are naturally occurring monopolies like public utilities and when a firm is the only producer of a particular good or service. This single firm or company because the scale of economies is so large that they can supply the entire market at a lower cost than any other competing firm could. Monopolies become a problem when a firm or corporation is the only producer selling a particular good or service, this monopoly wills tend to produce fewer products at a high price. This meanwhile is not productive of a free market. The antitrust laws that are in place today came about from the Sherman Act of 1890. This act was created when the public grew resentfully of the trusts that emerged in the 1870’s and 1880’s. The Sherman Act states that “Every contract, combination in the form of a trust or otherwise, or conspiracy, in restraint of trade or commerce among several states, or with foreign nations is declared to be illegal.” This surprising short sentence is the cornerstone for our antitrust laws today. The Sherman Act basically outlawed restraints of trade, meaning anything that would restrain the flow of free trade. This gave a firm foundation for new and current business to enter into the market place; there would be no fear that they would be pushed out of the market either by price-fixing or collusion. These antitrust......

Words: 718 - Pages: 3

Anti-Trust Laws

...Abstract Anti-trust laws were created to stop businesses that are to big from blocking the competition and abusing their power over other businesses. Example 1 Why would the drug maker want to stymie generic competition? Explain. There is one major reason that any pharmaceutical company would attempt to stymie generic competition of any loss of their revenues’. Generic brands of drugs are normally provides the exact same level of benefits just at a much lower cost. The drug makers would defiantly lose millions of dollars by allowing a generic copy of their drug to be sold. The second reason would be the cost of making the drug along with advertising and marketing it as well would cost thousands of dollars. Along with the cost of researching, design, manufacturing, and compliances that goes with the federal regulations. This would mean more money out for the company. They would need to pay for any competition that would hinder any potential success of their product. With all this we also need to consider that the fact of a company’s success would to keep the investors willing to resource their projects, studies and the funding for all those developments. The company wants to make the investors happy so that they wouldn’t lose them, if they don’t maintain a certain level of profitability to keep them happy. Without the investors they would go belly up. What types of legal barriers to market entry exist? When a pharmaceutical has more marketing power they...

Words: 1015 - Pages: 5

Google Anti Trust Laws

...Google Faces New Federal Antitrust Probe While conducting my research for this assignment I have really became familiar with antitrust laws and how they play an important factor on successfully running a business. Antitrust laws seek to make businesses compete fairly. They have a serious effect on business practices and the organization of U.S. Industry. Recently in the news many articles have highlighted the topic that Google (The world’s largest Internet search engine) has been violating antitrust laws on how they are handling some ad sales. Just earlier this year (approximately four month ago) the FTC wrapped on an investigation concluding that the search giant had not manipulated its web search results to hurt rivals (US Department of Justice, 2013). Currently in the news Google is being accused of hiding links to rival shopping. This includes travel and other websites to help protect its ad revenues. The companies coming forth explain that Google isn’t practicing ethically and are only looking to benefit their company only. Google has stepped in and is currently trying to convince the European antitrust investigation to wrap up the antitrust probe (US Department of Justice, 2013). Google has offered to change some of their search pages to give more space to rivals in order to satisfy their concerns and just alleviate the whole issue (US Department of Justice, 2013). To my understanding this ordeal falls under the Sherman Act, which was passed by congress......

Words: 479 - Pages: 2

Anti Federalism

...where the sates are supreme makes is more beneficial to the people; having a strong central government however, leaves room for domination and control. The federalist supported the constitution and wanted a strong central government. As an anti-federalist the main focus of interest is the protecting the people's rights and limiting government control. Federalist supported the constitution, and wanted immediate ratification. They favored limiting state power, and believed that a strong central government was needed to protect the country. The Federalist's response to the anti-Federalist claim that a Bill of Rights should be introduced was that it would be dangerous. If a right was not listed, what was stopping the government from violating that law? The Federalist figured it would be best if no specific law was listed. Anti-Federalists did not want to ratify the constitution. Most Anti-Federalists believed that a somewhat stronger central government was needed, but for the most part favored a federal system where the states were supreme. Anti-Federalists did not want to ratify the constitution because there was no bill of rights, they wanted the rights of the people to be documented, and limit government power to some degree. The anti-federalist also believed that congress and the executive branch held too much power, and they feared that people of wealth would have the opportunity to obtain more power than the government itself. The Federalist papers contained many......

Words: 754 - Pages: 4

Anti-Trust Law and Monopoly; Restraint of Trade

...Anti-Trust Law and Monopoly; Restraint of Trade Anti-trust laws encourage competition by “leveling the playing field”. These laws are intended to prevent large companies who have already established themselves from using their size and leverage to prevent competitors from entering their markets. The Sherman Act addresses unfair strategies in two different ways: Section 1 forbids restraint of trade and Section 2 forbids the misuse of monopoly power. Section 1 requires two or more persons conspiring together for a violation, so the essence of the illegal activity is “the act of joining together”. Section 2 refers to “every person”, so the conduct of a single person can result in a violation of Section 2. Any agreement between firms that results in reduced competition in the marketplace is restraint of trade. When there are very few firms in a market and a firm with an extreme amount of market power can affect the market price of its own product that firm has monopoly power. The Sherman Act applies only to restraints that have a significant impact on interstate commerce; it also extends to U.S. nationals abroad. The Clayton Act deals with specific practices not covered by the Sherman Act that reduce competition or lead to monopoly power. However, they only violate the Act if they are found to substantially lessen competition or create monopoly power. The price discrimination section 2 of the Clayton Act makes it illegal to injure buyers through unfair pricing and......

Words: 897 - Pages: 4

Anti-Trust Laws

...best way to promote consumer well-being. America’s anti-trust laws have been in place for more than 100 years, since the Industrialization of America protecting the consumer’s rights. However, more countries have passed anti-trust laws in the past 20 years. America’s anti-trust laws were passed to focus on anti-competitive practices. Americans have long loved free market system and the competition that it fosters. Competition among businesses has been regulated by anti-trust acts recently; however they help to maintain a fair and equitable system where the small business is able to compete with the big business. The anti-trust laws enable the consumer to purchase a quality product at an affordable price due to the competitive market that it sets in place between the businesses. Anti-trust laws are needed to continually handle the companies that would be dishonest in business practices if not for regulations and rules. This paper will discuss the impact of the anti-trust laws that govern competitive business and how they protect the consumer and business from monopolies, deceptive practices, and prevent predatory lending. Sherman Act The anti-trust laws were created by Congress to protect the consumer and business and to save competition and free market. A recent example of a company that is aggressively acquiring or becoming a cable monopoly is AT & T who is acquiring DirecTV. The first of the anti-trust laws was the Sherman Act in 1890, which outlaws or......

Words: 1174 - Pages: 5

Anti Superstition Law

...ANTI SUPERSTITION AND BLACK MAGIC ACT Anti Superstition And Black Magic Act B.A.L.L.B(Hons) Roll No-36 ABSTRACT Superstition is a belief that is not backed by scientific evidence. It is irrational faith in something without a proper explanation. Superstitions are rampant in India and have claimed many lives over the years. The Maharashtra Prevention and Eradication of Human Sacrifice and other Inhuman, Evil and Aghori Practices and Black Magic Bill 2013 is the first of its kind in India and was passed on 18th December, 2013. The bill was first drafted by social activist and rationalist Narendra Dabholkar in 2003. The bill faced heavy criticism and cost Dabholkar his life. He was shot dead by unknown assailants in August, 2013, nearly 4 months before the bill was passed. The Anti- Superstition Act is the first of its kind in the country and has been dealing with superstition effectively since its implementation last year. Other states such as Karnataka and Assam are also contemplating an Anti -Superstition Bill. This article provides the meaning and causes of superstition. It also discusses the history of the anti- superstition act in Maharashtra, its scope, limitations and subject matter KEYWORDS Superstition, Maharashtra, anti- superstition bill, Narendra Dabholkar, black magic, blind faith, Maharashtra Andhashraddha Nirmoolan Samiti (MANS) ......

Words: 4298 - Pages: 18

Explain Why Bismarck Introduced the Anti-Socialist Laws

...Explain why the anti-socialist law was introduced in Germany in 1878 (12 marks) Bismarck introduced the anti-socialist laws due to a number of factors all stemming from his underlying fear of the threat of socialism and the pragmatic nature in which he found the opportunity to exploit socialism and introduce the new laws swaying the public opinion away from socialism. One reason why Bismarck introduced the anti-socialist laws in 1878 was due to socialism being a political and social threat to the unity of the German empire and the position of the German classes e.g. the Junker class. Ever since the early 1870’s Bismarck had felt a growing alarm at the rise of socialism within Germany and was disturbed by the progress made by the socialists in the Reichstag elections with the SPD winning half a million votes and 12 seats in 1877. He knew that the SPD would impose a tremendous threat to his aim of withholding power in the hands of aristocracy and of course himself. Beside other statesmen after the Paris Commune, Bismarck dreaded one last grasp of the socialist movement on German politics. It would have given too much power to the people. Furthermore another reason why Bismarck introduced the anti-socialistic laws was because the opportunity was provided to him with the two assassination attempts on the Kaiser in 1878. Bismarck drew no clear distinction between anarchy and socialism and therefore it is clear as to why the SPD lost support. The public alarm at the......

Words: 515 - Pages: 3

Anti Corruption Law

...Company Law Cons Even though the Hong Kong Bribery Law acts effectively in anti-corruption compared to the mainland bribery law, there are still some loopholes, especially when compared to the UK Bribery Act and the US Foreign Corrupt Practices Act. Similar to the effectives of the Bribery Law, the defects of the HK bribery law also covers equality, enforceability, recourse efficiency and law as a reflection of community standards and expectation four aspects, and each will be discussed with relevant cases. 1. Equality 2.1 Foreign bribes With the prevalence of overseas corruption, most of the countries have set specific regulation against foreign bribes. For example, both the UK Bribery Act and the US Foreign Corrupt Practices Act (FCPA) make it an offence to bribe foreign officials. Under the Bribery Act a “foreign public official “ is defined more narrowly than under the FCPA but sill includes (1) anyone who holds a foreign legislative or judicial position; (2) individuals who exercise a public function for a foreign country, territory, public agency or public enterprise o; or (3) any official or agent of a public organization. On the other hand, the Hong Kong Bribery Law does not specifically cover the foreign bribes, which results in the controversial judgment on the case HKSAR v. Krieger . In this case, the defendants, the officers of a Hong Kong subsidiary of the Swire Group of Companies were accused of conspiring with a Macau businessman to......

Words: 1641 - Pages: 7

Anti-Divorce Law in the Philippines

...is to be expected that the country will continuously have a robust during 2015. CRBE Philippines also doesn't see any sign of slowdown in the real estate business until 2016 mainly because a lot of companies are expanding. Despite of the increases in rental rates across all business districts, good news still remains that investors are willing to pay for the quality and value that they can get in the Philippines. Since Real Estate business is one of the most emerging industries in the country, many firms compete in this field. The top three real estate companies in the Philippines are Ayala Land, Inc., SM Prime Holdings, Inc. and Megaworld Corporation. C, R Megaworld Corporation was founded by Andrew Tan and incorporated under Philippine law on August 24, 1989. It is a subsidiary of Alliance Global Group, Inc. and it has a market capitalization of 134.8 billion pesos. It has a ticker symbol of MEG in the Philippine Stock Exchange. Megaworld Corporation, together with its subsidiaries, develops, markets, and leases real estate properties in the Philippines. The company’s real estate portfolio comprises residential condominium units, subdivision lots, and townhouses. It also leases office and retail spaces; manages hotel operations; and provides project design, construction, and property management services, as well as engages in cinema, business process outsourcing, educational, facilities provider, and maintenance activities. The company initially established a reputation......

Words: 779 - Pages: 4

Legal Protection Provided Against Disability Discrimination — Evaluation of the Appropriateness of the Disability Anti-Discrimination Laws

...Legal Protection Provided against Disability Discrimination — Evaluation of the Appropriateness of the Disability Anti-discrimination Laws Name Institution Date Introduction The evolution of the world has been accompanied by a number of social developments. Some of these social developments have included equality policies, and as far as disability is concerned, this has been one of the critical areas of concern[1]. The concern has been extended in a number of areas, especially jurisprudence. The rationale is that people with disabilities have often been condemned to contend with discrimination, a social injustice. On the other hand, jurisprudence is as an avenue of guaranteeing justice for all. Various legal steps have been developed, including the formulation of laws. This paper seeks to examine the outright nature of these steps in taming disability discrimination. Disability anti-discrimination laws Central to the disability anti-discrimination legal steps are the legal stipulations underlying the Universal Declaration of Human Rights and bill of rights, which have often served as a framework for inequality policies. In particular, the universal Declaration of Human Rights is considered as a common standard for achieving social justice for all people across the world. What is well noticeable from all the articles in the Universal Declaration of Human Rights is the emphasis for treating every......

Words: 1294 - Pages: 6

Anti-Bullying

...bullied every single day in the United States and sometimes, it cannot be stopped effectively. Bullies are everywhere. They are in offices, at home, in the neighborhood, and many other places. It is a huge problem in schools as well. Many schools in the country have anti-bullying policies. These policies are all different and are implemented in different ways. Most of these policies are not effective though. Anti-bullying policies are not effective against all bullying because school bullying and its effects are still seen, because of the growing use of technology, and because of family influences. Anti-bullying policies are not effective because school bullying cases are still frequently happening in schools. Bullying is a major problem in the world today and it can be seen almost everywhere and it happens every day to people. It most commonly occurs in schools though. Many schools have adopted policies that they use to help prevent bullying in their establishment. However, these policies are not always effective. A study by a University of Texas in Arlington found that students at a school that had an anti-bullying policy, “were 1.2 times more likely” to be bullied than students who attended a school without an anti-bullying policy (Antoniades, pg. 1). This confirms the fact that these policies are not always effective. A school that does have a policy actually is more likely to have bullying. A student is often challenged to bully because they see that they can’t and that......

Words: 1672 - Pages: 7

Anti-Trust Laws

...Antitrust Laws & Their Effects Jamar Averyhart Dr. Law Trine University In order to have a free economy you must have a competitive market place. A market that is open and stimulates the economy. This gives consumers whether they are organizations or just regular citizens the opportunity to purchase consumer goods at a relatively low price. As opposed to other economies that are not open markets, and that have one firm dominating the market place. Which drives up the price of consumer goods and make them unreasonably high. This is where antitrust laws come into play ("The Antitrust Laws," 2015). What are antitrust laws? Antitrust laws keep organizations from creating monopolies in industries, or colluding to drive up the price of items. If two major firms i.e. Apple and Microsoft were to merge. They control a large majority of the marketplace in the computer industry. This merger would lead to a shift in the price of computer and computer technology. It would create unequal competition and drive many other firms out of business. With the resources and consumer base that both companies have they would be able to dictate the prices in the industry and not have to rely on consumer demand and market trends. The first ever antitrust law was passed in 1890 which was the Sherman Act ("The Antitrust Laws," 2015). The Sherman Act made it illegal to try to form a monopoly, have a monopoly, or plan to have one. ("The Antitrust Laws," 2015) With the Sherman Act violating......

Words: 2079 - Pages: 9

Bus 670 Week 5 Individual Assignment Anti-Discrimination Laws Related to Employment

...Anti-Discrimination Laws Related to Employment     BUS 670 Legal Environment of Business                   Administrative Assistant (Ft Worth, TX)   In search of a full time administrative assistant.   *About us: Partners in reading are a company that was established in 2000. We provide children with one on one reading support. In a structured environment that is web based the curriculum engages our students. This program also provides basic building blocks to supplement the children’s academic growth. *Summary of position: Partner in reading is looking for a talented administrative assistant to provide much needed administrative support. Your job description ranges from general office support to calendaring, expense reconciliation travel and planning for events and preparing board meetings minutes and follow us. The most qualified person for the job will have a strong work ethic. They will possess in performance with much attention to detail. The candidate will take imitative and apply their knowledge with little to no direction. Diplomacy, tact, calendar fluency travel arrangements and time management is a big part of the job. *Responsibilities: Office management Development and outreach coordinator Executive and administrative support *Qualifications: Bachelor’s degree or equivalent experience Two years prior work experience in a professional setting Great communication skills, organizational and interpersonal skills Excellent......

Words: 434 - Pages: 2

Anti Trust Laws

...collects the most money. In business, this is illegal and antitrust laws are what mandates and controls corporate America’s ability to create monopolies. This attempts to keep a fair playing field among competitors in similar businesses (Ftc Guide To Antitrust Laws, 2008). With the current health care debate issues concerning anti trust laws are also an issue for concern. A major facet of President Obama’s health care reform is for those within the health care community from providers to drug companies to commit on some level to keeping down cost. According to the New York Times, “Any agreement among competitors with regard to prices or price increases — even if they set a maximum — would raise legal concerns” (Pear, 2006) Anti-trust laws are imperative to keep the market competitive regardless of the type of business one runs. However, especially in terms of medical care it is important that issues, such as price gouging do not take place because of the large number of people who struggle with health care cost. Unfair business practices are always a point within business constantly under monitoring and creating changes because of said monitoring. Health care is essential to the everyday lives of the American people, from those who can afford to pay cash for their medical services to those who use public assistance, and everyone in between. If any area of business needs to stay abreast of issues concerning anti trust laws and monopoly health care is number one because of......

Words: 1043 - Pages: 5