Reed Smith LLP
Global Perspectives
They killed Quill. What's next?
On June 21, 2018, the U.S. Supreme Court issued its decision in South Dakota v. Wayfair, Inc., in which it held that physical presence is not required in order to require a remote seller to collect sales tax. The decision explicitly overrules the Court’s long-standing precedent in Quill v. North Dakota and National Bellas Hess, Inc. v. Department of Revenue, which provided that physical presence was required to create sales tax nexus.
While the Court’s decision found that the physical presence standard was unsound and incorrect, it did not set a threshold for sales tax nexus generally and declined to specify what restrictions the dormant Commerce Clause imposes on state sales tax collection obligations. These questions of law are likely to spark significant controversy and litigation across the country. Reed Smith plans to address these questions in an upcoming webinar.
Potential conflict and harmony between GDPR and the CLOUD Act
Although it has yet to be seen how regulators will enforce these laws where there is a conflict, a company faced with a request to produce data under the CLOUD Act may have to exercise its lawful rights to transfer that data under Articles 44-49 or perhaps seek to quash the request altogether. Ultimately, it is imperative that businesses understand their obligations under each regulation, and that they act with those obligations, and the potentially steep fines that accompany noncompliance, in mind.
European Commission opens LNG Qatar Petroleum
Singapore Stamp Duties (Agreements for Sale of Equity Interests) (Remission) Rules 2018
The Stamp Duties (Agreements for Sale of Equity Interests) (Remission) Rules 2018 (the Remission Rules) came into effect in Singapore on 11 April 2018. They reverse a number of prior amendments to the Stamp Duties Act (Cap. 312)(the Stamp Duties Act) relating to the payment of stamp duty, which were made on 11 March 2017 (the 2017 Amendments), giving clarification to the intended changes to the Stamp Duties Act. The 2017 Amendments provided that, when a transfer of shares took place, stamp duty would be payable upon the signing of the agreement rather than at completion of the transaction. This caused concern and confusion for investors. Therefore, the reversion to the payment of stamp duty upon completion of a transfer of shares (unless certain exceptions apply) is seen as a welcome development.
10,000 Foot View
The Collaborative Decade
Welcome to the Reed Smith Conversations, a new podcast from Reed Smith, produced by Wf360 productions. Reed Smith Conversations is a four-part series, each a highly interactive discussion on a topic of importance to all of us, perhaps now more than ever. In each episode, you’ll hear from people who may shake up your thinking on issues you thought you already knew well.
