Financial Safety Advice

In many corporations are given the case mix of the articles of association stipulate that the position of director will be free but then made ??himself manager jobs outside the administration of the company and therefore receive a salary for such work .

In this case, primarily a result of various Supreme Court decisions, we need to fully quantify and clarify the scope of managers’ pay , whatever they are. Both through its effects on the business relationship with partners such as tax deductibility of these costs to society. I copy a query that has come to clarify all these points:

I am the sole director of a SL where I have a 50% stake and has no employees. The charge does not pay (as laws). However, he receives remuneration payroll ¿? administrative work performed by the (accounting, billing, performing consulting work is the social order, etc.).. I arise several questions: Do I have to have some kind of employment contract for this activity?

The first thing you have is that society can not pay for the employment relationship if the administrator is not contemplated in the statutes . That is, the statutes should be changed to see that society does not pay the manager for the tasks of administration of the SL but it pays for the realization of dependent jobs in society. This requirement is essential to prevent improper claims for payment by the other partners and for payments made ??to the administrator are deductible from corporate income tax without any doubt.

Once the administrator has determined that you do receive payments from the company by its dependent jobs, the General Meeting shall fix annually the amount of remuneration the manager for this work . However, in some cases, the Tax Agency has accepted as administrator to deduct these payments for work done when they have met these requirements:

• Posting in the year in which they are earned and justification of expenditure.
• For the derivation of income, which should be testable by the means admissible in law.
• Mandatory accreditation of the payment made is for the company by the existence of an employment relationship between it and the administrator to perform such work.

The first two criteria are similar for any deductible expense, but the resolution of the third case, gives rise to the question and the model of employment contract: Read the rest of this entry →

The financial professionals will certainly pray secretly that this study does not hit the street. While the media are just beginning to relax their guard on the highly controversial subject of bonuses, a study by Olivier Godechot, CNRS researcher, it shows that the increase in salaries of finance professionals that has most contributed the rise in inequality in France, and not those CEOs, sports superstars or entertainment.

Based on data from DADS (annual declarations of social data) between 1976 and 2007, ie the Social Security wage data for the private sector, this specialist bonuses and mobility in the financial industry, shows a first time that the widening gap between the wages due to rising wages and higher (specifically, 0.01% higher, or 1692 people, earning an average of nearly $ 1.7 million per year ) especially since the mid 90s. In comparison, the bulk of employees (90% lowest paid an average of 22 400 € per year) is it remained comparatively stable.

Olivier Godechot then introduced a sectoral approach. Thus, “some sectors such as industry, commerce and restaurants, transport and communication are now much less represented at the top of the hierarchy of wages they were 30 years ago.” In contrast, the ratio of employees to finance increases considerably in this category from 96.

Finally, the researcher quantifies the contribution of this sector to the increasing inequality between 1996 and 2007. Conclusion: the category of 0.01% highest paid employees in France, “we find that finance is responsible for 57% of the increase. At the end of the period, finance constitutes 37% of its workforce. The financiers are 19.4 times more represented at that level in the bottom half. “

Meanwhile, it is shown on this period as salaries of top 100 finance executives rose 8.7 times to over 4.6 million euros on average in 2007. The increase is 1.5 for the top 20 sector employees film, television and video, 3.3 for the top 25 athletes and the top 100 CEOs and 3.6 for the top 100 executives outside finance.

And Olivier Godechot conclude on the “political implications” of his study: “To impose heavier this fractile wage would be another way (perhaps easier to achieve than a tax sectoral) to redistribute these wages, as more and most citizens consider annuities.

Under the federal election campaign, Finance and Investment gives the microphone to the main Canadian political parties. The author of these lines has met with the representative of the Conservative Party, Ted Menzies, Minister of State (Finance) since January 2011 and candidate in the riding of Macleod, Alberta.

Finance and Investment: Your party is proposing does one or more measures that will promote the development of the financial services industry in Canada?

Ted Menzies: We will ensure that the financial industry remains strong and vibrant and that regulation in this sense remains.

We will continue to ensure that problems with the U.S. housing market have affected the banks of the United States does not affect Canada. Already, we reduced the maximum mortgage of 35 to 30 years and we have ensured that the maximum amount of mortgage refinancing is only 85%. If people have problems with their mortgages, they will bounce off the banks.

Health Canada’s financial system is its stability. We worked with the G7 and G20 to ensure the stability of the global financial system. Thus, with our partners in the G20, we are implementing rules that promote stability of our banks. We want them to have the same rules as other international banks.

FI: Are you in favor of the adoption of a single securities commission in Canada?

TM: We believe that a national regulator is the right thing, but if the Supreme Court rendered a decision against us, we would not fight the court.

For several years, foreign companies approach us and ask us why we do not have a single regulator across the country. These companies have told us: “I would start a business in Canada and operating in all jurisdictions. “They have to pay application fees in 13 jurisdictions. They have forms to fill out separately in each jurisdiction. I talked to companies that have told me: “I have not come because in Canada, you’re the only country in the industrialized world that does not have a single regulator. “

However, we do not try to reduce the rules. We are not trying to add risk to investment. We try instead to foster investment. Several experts have argued that if we had a national regulator, we would never had to deal with cases of fraud to the Earl Jones or the setbacks caused by the Commercial Paper Asset-backed non-banks. A regulator could raise a flag against these assets. Moreover, we do not have adequate laws to prosecute Earl Jones of this world because we have 13 different jurisdictions.

FI: What is your position regarding the proposed merger of the TSX and London?

TM: The Industry Canada must determine whether this potential transaction meets the requirements under the Investment Canada Act. Meanwhile, the provinces review the transaction, but it would be inappropriate for me to comment further.

FI: The savings of Canadians is at an historic low. Do you think the government should stimulate savings? If yes, what measures are you considering? Read the rest of this entry →

From the hand of the European Central Bank (ECB) know the data for loans granted by financial institutions to the resident private sector. According to these data, credits increased by 1.2% in August over the same month last year.

Loans to companies grew against the previous month, but remained negative figures in annual terms, down 1.1%.

In this regard, the European business sector financing glimpse the light at the end of the tunnel between February and May, before returning to negative rates.

In contrast, loans to households grew by 2.9% from 2.7% in July. By type of financing, home loans rose by 3.5% in July rose 3.4% and consumer loans, not living its best, fell 0.4% in July was -0.6 %.

Finally, money supply, called M3, rose by 1.1% on-year in August, compared to 0.2% in July. Read the rest of this entry →

The significant changes in the industry, the economic volatility, changes in client expectations and adoption of new technology has increased the challenges for the various financial industries. Alejandro Amicone, a partner at Accentual and responsible for the financial services industry in Argentina, drew up a report that highlights the main trends for the coming years.

Research says, suggest that we are at a point where the business capabilities can be essentially elastic, flexible and able to accommodate any level of economic volatility, and catapult an organization with unprecedented levels of performance. Beyond that elasticity can be seen 4 major technological trends: Data and Decisions, Mobility, Convergence of collaboration, communication, community and Internet Content.

Data and Decisions

Over the next three to five years banks have significantly better data available even with the footprint of customers, which will streamline the sales and trading services. At the same time, the data and decision tools will allow a breakthrough in supporting information when making decisions between bank clients and prospects. Guests will have the correct information about products, services and accounts when needed and can be accessed through multiple channels. Read the rest of this entry →