The FT comments on yesterday's release of proposals for a new company tax code that the changes woul...
The FT comments on yesterday's release of proposals for a new company tax code that the changes would close off loopholes currently used to create overseas subsidiaries exempt from tax.
The Treasury wants to shift from shift away from a capital gains regime to an income tax type regime applied to capital assets in the same way as income.
This change is likely to hit property investment companies the hardest, the FT says, particularly if introduced in conjunction with new EU accounting rules due by 2005.
The Scotsman says that the new tax proposals could cost UK business billions of pounds unless properly implemented.
The proposals are "broadly welcomed" the paper says, but with a caveate from Derek Allen, the director of tax at the Institute of Chartered Accountants of Scotland, who says that businesses are carrying £70bn in losses on their books in line with current accounting practices, which would cause massive tax liabilities under the new regime.
Most papers cover the story of investment bank Cazenove being been hit by a defection in the shape of David Verey, joint deputy chairman.
The Times notes that he joined just eight months ago from rival Lazards, but that the chemistry between Verey and Cazenove chairman David Mayhew did not develop according to plan.
The change means the other deputy chairman John Paynter now moves into top position as possible heir to the Mayhew position.
The Daily Telegraph says that Verey was generally considered the chairman-in-waiting, but that delays to the plans to float Cazenove became a sore point between the Varey and Mayhew.
That float is now being delayed by market conditions, but whenever it takes place the market is still betting on a bigger rival scooping up the firm, The Times says.
Stockbroker analysts are under the microscope again, this time in The Times' piece on the £27m lawsuit being brought against French house Credit Lyonnais over claims that one of its previous analysts routinely copied extracts from notes written by a competitor.
The suit comes just as the FSA has asked for responses to a discussion paper on how to ensure analysts do not write biased reports that could generate more investment banking business for their employers.
Pereire Tod, a small Swiss-owned broker, has fixed on the sum of £27m because that is the amount it calculates CL could have generated in sales to its institutional clients following publication of the plagiarised notes, The Times says.
The largest US life assurer, Metlife, has announced it is unlikely to meet earnings expectations when it next reports, the FT says.
Like Netherlands-based Aegon before it, Metlife is blaming the fall in stock markets for undermining its profitability.
However, Metlife also says that premiums have increased following events of 11 September last year, and says its second quarter produced some record profits.
In more US news from the FT, it reports that the Financial Accounting Standards Board has taken the first steps towards changing the rules on accounting for stock options in the US.
The issue has become heated following new laws on corporate governance passed by the US Congress in the wake of the Enron and Worldcom scandals.
Most companies have so far only noted the potential cost of stock options in their accounts, rather than deducting the cost from profits.
The FASB is proposing to change that, although there is some strong debate over how quickly to introduce the new rules that would guide the process.
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