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The Hill's Congress Blog: "Congress must put the interest of the American people first"

07/24/2014

The Hill's Congress Blog: "Congress must put the interest of the American people first"

There have been in the last few months a plethora of U.S. companies that have announced plans to engage in an inversion transaction, writes Philip G. Cohen, a professor in the Legal Studies and Taxation Department of Pace University's Lubin School of Business and a retired Vice President-Tax & General Tax Counsel for Unilever United States, Inc. Probably the most famous one involved Pfizer Inc.'s attempt to acquire AstraZeneca PLC with the merged parent company to be incorporated outside the U.S. While AstraZeneca rebuffed Pfizer, other transactions are being undertaken or being actively considered.

On July 18, AbbVie Inc. announced it had agreed to buy Irish pharmaceutical company Shire PLC in a $54 billion deal that would result in the parent company incorporated in the U.K. dependency of Jersey, a small island and tax haven in the English Channel. The combined company would be one of the 50 largest companies in the world. Medtronic Inc., a $60 billion medical device company, announced last month its plan to relocate its place of incorporation outside the United States in conjunction with its acquisition of Coviden PLC. Walgreen Co., the giant U.S. drug retailer, is also reported to be considering an inversion in conjunction with exercising its option to acquire the 55 percent of a Swiss entity Alliance Boots GmbH that it doesn't currently own.

An inversion transaction involves a U.S. incorporated company becoming a foreign incorporated company that is generally continued to be managed in the United States. It's undertaken to address a provision in the Internal Revenue Code that determines whether a company will be considered to be domestic by virtue of the entity's place of incorporation.

U.S. incorporated companies are subject to tax on income earned anywhere in the world although active non-U.S. earnings of foreign subsidiaries are generally not taxed until repatriated back to the U.S. parent company. If the parent company is considered foreign for U.S. income tax purposes, it will still pay U.S. income tax on earnings from its U.S. activities but will be able to avoid tax on foreign earnings. Furthermore, the inverted companies will also have available techniques to reduce tax on its U.S. operations by, e.g., paying interest and royalties to its new foreign parent company or other low taxed foreign group members. These techniques are presently available to traditional foreign companies with U.S. operations.

Internal Revenue Code section 7874 currently provides that in general if at least 80 percent of the stock of a former U.S. company is owned by the former shareholders of the inverted company, the company is treated as a U.S. corporation for U.S. income tax purposes. To avoid this provision, inversion transactions are currently being structured so that shareholders of the foreign target company hold more than 20 percent of the merged company.

Inversion transactions are legal, and CEOs have a primary responsibility to act in the best interest of their shareholders. Since inversion transactions can be structured legally under current law and may substantially increase after-tax earnings, they need to be considered by corporate management.

Some members of Congress, especially Republicans, have argued that the answer to inversion transactions is to undertake as part of fundamental tax reform, territorial taxation pursuant to which active foreign earnings become exempt from U.S. taxation. Some refer to inversions as self-help territorial taxation. While adopting territorial taxation would do away with the need to undertake the transaction, it could also lead to further increased migration of good jobs, facilities and taxable income from the U.S.


 

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U.S. News: "Decipher the True Cost of Your Online Degree"

07/21/2014

U.S. News: "Decipher the True Cost of Your Online Degree"

. . . Kathy Hughes, an online undergraduate student at Pace University, showed similar initiative when she was comparing the duration and cost of possible online bachelor's programs.

"I went to every single tab on the whole Pace website, and I printed screen shots," says Hughes, a government public safety worker living on Long Island. "I had everything in front of me before I even contacted the school."

Hughes, who had completed an associate degree, also made sure she knew just how many credits Pace would accept. She says it's important for students to know that information before they enroll so they can compare the costs at different schools.

"Have a really good idea of what you've taken and what your grades were," says Hughes, who was able to begin her time at Pace as a junior due to the transfer credits the school accepted.

Read more: http://www.usnews.com/education/online-education/articles/2014/07/18/decipher-the-true-cost-of-your-online-degree

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NewsFactor Network: "Are Nadella's Historic Layoffs Best for Microsoft?"

07/21/2014

NewsFactor Network: "Are Nadella's Historic Layoffs Best for Microsoft?"

. . . Jonathan Hill, an associate dean of Pace University’s Seidenberg School of Computer Science and Information Systems in New York, said though many technology “power users” have lost top of mind awareness for Microsoft, the company’s products including Skype, Xbox and, of course, Office are in consumers’ hands every day.

“Perhaps more critically, Microsoft’s backend cloud computing and coding tools including SQL Server, Visual Studio and Windows Azure run many of the apps that consumers and businesses depend on,” he said. “Nadella’s changes are part of an ambitious and long overdue revamp of what is clearly a healthy company with a strong foundation of core products and growing revenues.”

Read more: http://www.newsfactor.com/story.xhtml?story_id=102007YXGQ80

 

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Kansas City Business Journal: "What Russell Stover brings to the table for Lindt"

07/15/2014

Kansas City Business Journal: "What Russell Stover brings to the table for Lindt"

. . . Kathryn Winsted, associate professor of marketing at Pace University's Lubin School of Business in New York, found the combination of Lindt and Russell Stover extremely interesting.

She often lectures about the moves Mars Inc. made to fend off competition from The Hershey Co. in the 1980s. Mars looked for growth by expanding into new areas, acquiring Dove Bar International Inc. and entering the ice cream market. The company later started making Dove chocolate candies for adults.

"The Russell Stover deal is kind of similar in that regard," Winsted said. "This is an acquisition that will get Lindt into different places in the stores, with possibilities for new displays, especially during the holidays. So I really think the packaging is a big part of what Lindt is looking for in this deal. They could do large and small packages, and use some of the traditional products they already have."

Winsted said the deal has the added benefit of providing Lindt with a lower price point and brands that have more mass appeal.

"The Lindt chocolates tend to be much more expensive, catering to a more sophisticated client," Winsted said. "Only certain people buy them. But Russell Stover has more mass appeal in the United States. So I'm wondering if smaller truffles might start showing up in those heart-shaped boxes, compared to the large truffles in more expensive gift bags that they have now."

Read more: http://www.bizjournals.com/kansascity/news/2014/07/14/russell-stover-lindt-chocolate-merger.html?page=all

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Journal News: "Lifeguards train hard to dive in, save lives"

07/11/2014

Journal News: "Lifeguards train hard to dive in, save lives"

. . . The American Red Cross lifeguard certification, widely considered the standard in the field, requires about 30 hours of training, 80 percent of which is skill-related, according to Katherine Palladino, the longtime aquatics director at Pace University.

Completing the program also grants certification in CPR, first aid and automated external defibrillation. The CPR and lifeguarding certifications only last one and two years, respectively, and an abbreviated recertification class must be taken before it expires. Otherwise, the entire process must be started from the beginning.

Palladino, a Chappaqua resident who has nearly two decades of experience training lifeguards, teaches American Red Cross certification.

"I've been happy with the support they provide; I've been happy with the curriculum they provide," said Palladino, who had 120 students in June alone. "I think it's a good program."

Read more: http://www.lohud.com/story/sports/recreational/2014/07/09/lifeguarding-v...

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Journal News: "IBM's $3 billion chip investment could deliver jobs to Westchester County"

07/11/2014

Journal News: "IBM's $3 billion chip investment could deliver jobs to Westchester County"

. . . Amar Gupta, dean of the Seidenberg School of Computer Science and Information Systems at Pace University said it's too soon to say if any new jobs will come to Westchester, but he said the announcement bodes well.

"My sense is that this work will be done in many places, a significant amount of it in New York City and Westchester," said Gupta, noting that Pace's Pleasantville campus has internship, teaching and career-development relationships with IBM.

Read more: http://www.lohud.com/story/news/2014/07/10/ibm-chip-research-westchester-county-jobs/12489415/

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Westchester County Business Journal: "Pace University to host regulatory compliance program"

07/10/2014

Westchester County Business Journal: "Pace University to host regulatory compliance program"

. . . “Our CCRP Program is designed to be unique and comprehensive, with participants from banks, brokerages, asset management and trading firms, and supporting professions including law and consulting firms,” said Robert J. Chersi, the former chief financial officer of Fidelity Investments who was recently named executive director of the Center for Global Governance, Reporting and Regulation at Pace’s Lubin School of Business.

Read more: http://westfaironline.com/64109/pace-university-to-host-regulatory-compl...

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American Banker: "Small Banks Should Team Up to Fight Cyberattacks"

07/08/2014

American Banker: "Small Banks Should Team Up to Fight Cyberattacks"

"While major cybersecurity breaches like the recent attack on Target tend to grab headlines, smaller banks are actually much more vulnerable to cyberattacks than their larger peers," writes Darren R. Hayes, assistant professor and director of cybersecurity at Pace University’s Seidenberg School of Computer Science and Information Systems.  "Yet many community banks have failed to invest sufficiently in security."

Read more: http://www.americanbanker.com/bankthink/small-banks-should-team-up-to-fight-cyberattacks-1068423-1.html
 

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Pace University and the Association of International Bank Auditors announce new cycle of Certified Compliance and Regulatory Professional program

07/07/2014

Pace University and the Association of International Bank Auditors announce new cycle of Certified Compliance and Regulatory Professional program

New sessions to focus on corporate governance, cybercrime, risk management, pertinent regulations like Bank Secrecy Act/Anti-Money Laundering, Office of Foreign Assets Control, Foreign Corrupt Practices Act, and the evolving Dodd-Frank Act, Basel III, and Foreign Account Tax Compliance Act

New York, NY – July 7, 2014 — Today’s regulatory environment is ultra-complex and rapidly evolving. The Center for Global Governance, Reporting and Regulation at Pace University and the Association of International Bank Auditors announce a new sixth cycle of the Certified Compliance and Regulatory Professional (CCRP®) certificate program, designed to develop the critically important proficiencies essential for today’s financial services and other industry professionals.

The new cycle begins September 18, 2014, and continues to March 5, 2015. Classes will be held at Pace University’s Midtown Center in the historic Fred French Building at 551 Fifth Avenue between 45th and 46th Streets.

Recognized as the ‘standard’ for training and development courses by bank executives and regulators, the CCRP® program offers a 26-week session with intense and in-depth exposure to key aspects of governance, risk management, regulatory strategy, and relevant regulations taught by industry professionals and Pace professors. The program includes coverage of regulations in key foreign countries in a comparison with U.S. practices.

“Our CCRP® Program is designed to be unique and comprehensive, with participants from banks, brokerages, asset management and trading firms, and supporting professions including law and consulting firms,” says Robert J. Chersi, the former CFO of Fidelity Investments who was recently named Executive Director of the Center at Pace’s Lubin School of Business.

Sessions include detailed discussions of current compliance and regulatory issues, and examinations of real-life case studies. Team presentations provide experience in applying coursework to actual business problems.

The CCRP® at Pace provides growth opportunities and positions global financial services professionals as leaders in the compliance community, giving them an edge in a very competitive job market. The program has been designed with the rigorous content demanded by an academic agenda while stressing the important practical dimensions of real-world experience in the compliance field. Professors from Pace University, all with distinguished prior careers in the private sector, created the syllabus alongside veteran compliance professionals from some of the world’s leading international banks and their regulators.

Guest speakers drawn from prestigious New York law firms, Big Four Accounting firms, and the regulatory community will complement the joint Pace-AIBA team.

The Center also has expanded its other professional development offerings, including “boot camps” that can be customized to an institution’s desired location, topics, and duration, as well as on-line videos and publications that enable distance learning.

The CCRP® at Pace has been approved for Continuing Professional Education (CPE) credit by New York State.

More information about the CCRP® program is available at www.pace.edu/ccrp, and for all of the programs by contacting the Center’s Chairman Emeritus Jack James at jjames@pace.edu or Executive Director Bob Chersi at rchersi@pace.edu.

About the Lubin School of Business at Pace University: Globally recognized and prestigiously accredited, the Lubin School of Business integrates New York City’s business world into the experienced-based education of its students at Pace’s suburban and downtown campuses, implemented by the region’s largest co-op program, team-based learning, and customized career guidance. Its programs are designed to launch success-oriented graduates toward upwardly mobile careers.  www.pace.edu/lubin

About the Association of International Bank Auditors: The AIBA membership consists of internal audit, compliance and internal control professionals of nearly 100 U.S. branches and agencies of foreign banks.  The mission of the AIBA is to foster the professional standing of its members by increasing their knowledge and capacities to carry out their responsibilities with respect to international banking.

Media contact:  Bill Caldwell, Pace, 212-346-1597, wcaldwell@pace.edu

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