United States: NY Governor Cuomo Proposes Sweeping Tax Reform

Introduction

On January 21, 2014, New York State Governor Andrew M. Cuomo (D-N.Y.) released his 2014-2015 Executive Budget (Budget). Among other reforms, the Budget proposes sweeping changes to the Article 32 bank franchise tax and the Article 9-A general corporation franchise tax. In particular, the governor's proposals would repeal the bank franchise tax in its entirety and merge it into a significantly modified Article 9-A general corporation franchise tax. Key components of the reform package include unitary filing, economic nexus, repeal of subsidiary capital treatment, changes to the definition and taxation of business and investment income, market-based sourcing, and preferential treatment for certain manufacturers. It is important to note that the vast majority of the proposed reforms would only impact filing obligations in New York State, and not in New York City. Accordingly, if conforming changes are not made to the New York City Administrative Code, taxpayers may be faced with navigating the waters of two distinctly different tax regimes.

The proposed reforms are the result of discussions that the New York State Department of Taxation and Finance has had with practitioners, industry groups and other interested parties over the past several years, and are largely consistent with the reform recommendations recently made by the governor's New York State Tax Reform and Fairness Commission. If enacted by the legislature, the proposed reforms would be effective for tax years beginning on or after January 1, 2015. The corporate tax reforms proposed by the governor's Budget are outlined below.

Corporate Tax Reform

Unification of Articles 9-A and 32

The bank franchise tax under Article 32 would be repealed in its entirety. Taxpayers historically taxed under Article 32 would be taxed under the Article 9 A general business corporation franchise tax.

Economic Nexus

In addition to the existing nexus standards in New York (e.g., doing business, employing capital, etc.), corporations would be subject to the state's taxing jurisdiction based on economic presence in New York. Generally, "economic nexus" would be established if a corporation "deriv[es] receipts from activity in the state" totaling $1 million or more.1 Nexus would also continue to be established for credit card corporations that issue a minimum number of credit, bank, travel or entertainment cards to customers with billing addresses in New York, or that have a minimum number of merchant customer contracts in the state.2 In addition, non-U.S. corporations that meet the economic nexus standard but do not have effectively connected income ("ECI"), computed pursuant to Internal Revenue Code § 882, would not be subject to tax and would be excluded from the combined group (see below for discussion of certain alien corporations that would be required to file as part of the combined group).3

Unitary Combined Reporting

Taxpayers engaged in a unitary business with other corporations, and owning directly or indirectly more than 50 percent of their stock, would be required to file combined reports.4 The concept of distortion as a basis for requiring combination (and thus the substantial intercorporate transactions test) would be eliminated.

Combined reporting would also be required for captive REITs and RICs (not combinable under Article 33),5 "combinable" captive insurance companies,6 and certain alien corporations.7 Alien corporations that must be combined include those deemed to be "domestic corporations"8 or that have ECI for the tax year under the Internal Revenue Code.9 Corporations subject to tax under differing articles would continue to be prohibited from filing in the same combined group.10

Election as a Commonly Owned Group – An election to file as a commonly owned group would be permitted. Taxpayers making the election would be required to include all non-unitary corporations taxable under Article 9-A where a 50 percent ownership test is met.11 The election would be irrevocable and effective for the year made and six subsequent years; would renew automatically until affirmatively revoked; and could not be elected again for three years after the year of revocation.12 Under the proposed legislation, "any corporation entering the group subsequent to the year of the election shall be included in the combined group and is considered to have waived any objection to its inclusion."13

Computation and Accountability of Tax – In general, the combined group would be treated as a single corporation.14 Credits and NOLs of individual group members could be applied against the entire group.15 Each member of the combined group would be liable for the entire combined group's tax exposure.16

Intercorporate Eliminations – As before, intercorporate dividends would be eliminated. Federal law would continue to control for all other intercorporate transactions.17

Modified Tax Bases

Rather than being subject to tax on one of four bases, corporations with nexus in New York would be required to calculate tax on three different bases, and pay the highest of the alternative amounts. The three alternative amounts would be: (1) net income base tax; (2) capital base tax; and (3) fixed-dollar minimum tax (attributed to each member of the combined group). The capital and fixed-dollar minimum bases would include a credit for taxes paid to other states on identical bases.18 Under the proposal, the Article 9-A alternative minimum tax base, the Article 32 alternative entire net income base, the Article 32 taxable asset base, and the Article 32 fixed-dollar minimum tax would be eliminated. In addition, the separate tax on subsidiary capital would be repealed.

Tax Rates and Caps

For most corporations, the tax rate for the net income base would be reduced to 6.5 percent for tax years beginning on or after January 1, 2016.19 The tax on the capital base would be capped at $350,000 for qualified New York manufacturers and $5 million for all other taxpayers.20 The fixed-dollar minimum tax on C-corporations would be capped at $200,000.21

Preferential Treatment for New York Manufacturers – Reduced rates and lower caps would continue to apply to qualified New York manufacturers. In addition, and more notably, the net income of qualified New York manufacturers operating outside of the New York City metropolitan area would be exempt from tax for tax years beginning on or after January 1, 2015.22

Modifications to Net Income Base

The net income base tax would be imposed on allocated business income.23 The starting point for the net income base tax would be federal taxable income, or for non-U.S. corporations, ECI.24 Non-U.S. corporations would also be required to add back treaty benefits to federal taxable income.25 The majority of income modifications currently found in the Tax Law would remain unchanged. However, a number of the modifications that are obsolete would be repealed. In addition, because of the proposed modifications below, modifications attributable to subsidiary capital and the 50 percent exclusion for dividends from non-subsidiaries would be eliminated.

Subsidiary Capital, Business Income, Investment Income, and Other Exempt Income

The proposal would eliminate the exclusion of income, gains and losses attributable to subsidiary capital. "Subsidiary capital," as traditionally understood, would be reclassified as business income, investment income, or other exempt income. Investment income and other exempt income would not be subject to tax. Consequently, the "investment allocation percentage" for apportioning investment income would be eliminated.

Business Income – Business income would equal entire net income minus (i) net investment income and (ii) net other exempt income.26 Discrete components of business income are not defined, but business income would include: interest income and gains and losses from debt instruments or other obligations (unless the income could not be included in apportionable business income under the U.S. Constitution); gains and losses from stock of a unitary corporation; dividends and gains and losses from stock held in a non-unitary corporation for six months or less; and cash.

Investment Income – Investment income would be defined as income from investment capital, to the extent included in computing entire net income, minus – in the discretion of the commissioner – any interest deductions that are directly or indirectly attributable to investment capital or income.27 Investment income would be narrowly defined to include income from the stock of non-unitary corporations held by the taxpayer for more than six consecutive months, and not held for sale to customers in the regular course of business.28 For the purposes of the definition of investment capital and investment income, corporations not meeting a 20 percent ownership test would be presumed to be non-unitary. Additionally, a presumption that the stock is held for more than six consecutive months would be established if it was acquired during the second half of the tax year and owned on the last day of the taxable year.29 However, if the stock was treated as investment income in the taxable year in which it was purchased, but was not actually held for more than six months, the income generated from the stock in the year purchased would be required to be included in the subsequent tax year as business income.30 Investment income would also include income from a debt obligation or other security that cannot be included in apportionable business income as a result of U.S. constitutional limitations.31

Other Exempt Income – Other Exempt Income would include both exempt subpart F income and exempt unitary dividends.32 Exempt subpart F income means income, as defined under § 952 of the Internal Revenue Code, that is received from a controlled foreign corporation that is conducting a unitary business with the taxpayer but is not included in the combined report, minus – in the discretion of the commissioner – any interest deductions directly or indirectly attributable to such income.33 Exempt unitary dividends would include dividends from a unitary corporation not included in the combined report because it is: (i) taxable under another tax article; (ii) an alien corporation with no ECI; or (iii) less than 50 percent directly or indirectly owned, less – in the discretion of the commissioner – any interest deductions directly or indirectly attributable to those dividends.34

Interest Deduction – As previously stated, investment and other exempt income are computed net of interest expenses attributable to such income. If interest expenses exceed the income, deductions for the excess would be disallowed. Therefore, if the interest expenses allowed for federal income tax purposes and attributable to investment income exceeds investment income, the excess of the interest deductions over the income must be added back to entire net income.35 The methodology used to attribute interest expenses to particular classes of income would be based upon current rules. In addition, the allocation of interest expense for a combined group would be done on a combined basis.36

Rather than determining the exact amount of interest expenses directly or indirectly attributable to corresponding income, a taxpayer may elect to reduce total investment and other exempt income by 40 percent.37 If a taxpayer chooses to make this election, it must do so for both investment income and other exempt income.38 If a taxpayer chooses to make the 40 percent election, it would apply to all members of the combined group.39

Miscellaneous Changes – The proposed legislation also makes the following changes:

  • The "tax treaty" exception to the royalty addback provision would be eliminated, as applicable to both New York State and New York City.40
  • The Commissioner would have the discretionary authority to make a "deemed distribution" of non-premium income from overcapitalized insurance corporations to the affiliated corporation taxed under the general franchise tax in order to prevent overcapitalization of non-life insurance corporations.41

Deductions and Credits

Net Operating Loss Deductions (NOLDs) for Tax Years Beginning on or After January 1, 2015. The proposed legislation decouples NOLDs from federal limitations (e.g., they would not be limited by the federal NOLD source or year amount).42 However, taxpayers would not be permitted to reduce tax liability below the greater of the tax on the capital base or the fixed-dollar minimum.43 In addition, NOLDs can be carried forward only from years in which the taxpayer was subject to franchise tax.44 The net operating losses themselves would be subject to a 20-year carryforward, but would not be permitted to be carried back.45 Corporations that file their federal return as part of a consolidated group, but file their New York franchise tax return on a separate basis, must compute New York NOLDs as if they filed their federal return on a separate basis.46

Prior Net Operating Losses (NOLs) Converted to Credits – The bill proposes to convert any unabsorbed NOL carryforwards in existence during the taxable year beginning on or after January 1, 2013, and before January 1, 2014, into a credit to be applied in years beginning on or after January 1, 2015.47 For most taxpayers, the credit amount would be based upon the taxpayer's unabsorbed NOLs, business allocation percentage, and tax rate, all determined under the law still in effect through 2014.48 The credit could only be used in a year when the tax is measured by business income.49 In general, taxpayers would be allowed to take up to 10 percent of the credit per year, limited to the higher of the tax on the capital base or the fixed-dollar minimum.50 However, qualifying small businesses may take up to 100 percent of the credit in any year (rather than up to 10 percent).51 The credit would be subject to a 20-year carryover and any unused credit would expire after the tax year beginning on or before January 1, 2035.52

Investment Tax Credit – The proposed legislation restricts the investment tax credit (ITC) to qualified manufacturers, agribusinesses, and mining businesses.53 Under the proposal, ITCs can be earned only on investments in property used in the production of goods for sale, rather than the mere production of goods.54 The proposal would also eliminate ITC eligibility for investments by banks,55 and insurance companies,56 and would eliminate as well ITC eligibility for investments in film production facilities,57 and industrial waste treatment and pollution control facilities.58

Credit Survivability – The proposed legislation will have no effect on most credits generated in years before it takes effect.59 However, under the proposal, the alternative minimum tax credit would be repealed.60 Also, the proposed legislation would bar taxpayers from first claiming credits on amended returns.61

Apportionment

Business income would be apportioned using a single-receipts factor based on the customer's location.62 Income from digital products (see below), services, and other business receipts would be sourced based on a variety of methods. Receipts from the following revenue streams would be sourced based on current sourcing provisions: interest, fees, penalties, service charges, merchant discounts, and fees from credit cards;63 broker/dealer activities; services provided to a Regulated Investment Company (RIC);64 sales of tangible personal property, rentals of real and tangible personal property; royalties from the use of patents, copyrights, and other intangibles; railroad and trucking activity; aviation; advertising; and transportation of gas through pipes.65

Digital Products – Receipts from sales of digital products would not be permitted to be divided into separate property and services components, and would be required to be sourced as one receipt based on the location of delivery. Delivery destination would be determined based on user access, as demonstrated by IP address, location of equipment receiving delivery or allowing access, or invoice address. Delivery to multiple states still would continue to be classified as delivery to New York to the extent the purchaser or authorized user accesses or uses the product within the state.66

Internet, New Media Advertising, and Financial Instruments – Receipts from Internet and new media advertising would be sourced based on the number of viewers or listeners within New York when such advertising "is furnished, provided or delivered to, or accessed by the viewer or listener."67 Income from financial instruments would be apportioned using detailed new sourcing rules.68

MTA Surcharge

The MTA surcharge would become permanent.69 In addition, the MTA base and apportionment rules for the surcharge under Article 9-A would conform to the state rules.70

For more information on Governor Cuomo's tax reform proposals, and their impact on your business, please contact one of the authors of this alert, or the Reed Smith attorney with whom you normally work. For more information on Reed Smith's New York tax practice, visit http://www.reedsmith.com/nytax/.

 Footnotes

1 Bill Part A § 5; Tax Law § 209.1(a) and (b). "Receipts" would be defined in reference to applicable apportionment provisions.
2 Bill Part A § 5; Tax Law § 209.1(b) and (c).
3 Bill Part A § 18; Tax Law § 210-C.2(c).
4 Bill Part A § 18; Tax Law § 210-C.2(a).
5 Id.; see also Tax Law §§ 210-C.4)(f)(i) & 205. Additionally, the proposed legislation disallows the federal deduction for captive REIT dividends paid to members of affiliated groups.
6 Id.; see also Tax Law § 210-C.4(f)(ii). The new legislation does not define the term "combinable." However, § 211(4)(a)(7)(ii) continues to require inclusion of overcapitalized capital insurance companies in the combined report.
7 Bill Part A § 18; Tax Law 210-C.2(b).
8 C.f. 26 C.F.R. § 1.269B-1.
9 Bill Part A § 18; Tax Law §§ 210-C.2(b); 201; c.f. 26 U.S.C. § 871.
10 Bill Part A § 18; Tax Law § 210-C.2 (c).
11 Bill Part A § 18; Tax Law § 210-C.3(b).
12 Bill Part A § 18; Tax Law § 210-C.3(c).
13 Bill Part A § 18; Tax Law § 210-C.3(c).
14 Bill Part A § 18; Tax Law § 210-C.4(a).
15 Bill Part A § 18; Tax Law § 210-C(2)(a).
16 Bill Part A § 18; Tax Law § 210-C(6).
17 Bill Part A § 18; Tax Law § 210-C(4)(c)-(d).
18 Bill Part A § 17; Tax Law § 210-B.42.
19 Bill Part A § 12, Tax Law § 210.1(a).
20 Bill Part A § 12; Tax Law § 210.1(b).
21 Bill Part A § 12; Tax Law § 210.1(d).
22 Bill Part A § 12; Tax Law § 210.1(a).
23 Bill Part A § 12; Tax Law § 210.1(a).
24 Bill Part A § 4; Tax Law § 208.9.
25 Bill Part A § 4; Tax Law § 208.9(b)(1).
26 Bill Part A § 4; Tax Law § 208.8.
27 Bill Part A § 4; Tax Law § 208.6.(a).
28 Bill Part A § 4; Tax Law § 208.5(a). If the taxpayer owns or controls, directly or indirectly, less than 20 percent of the stock of a corporation that entitles the holders thereof to vote for the election of trustees or directors, that corporation will be presumed to be non-unitary. No presumption would be established for corporations that own or control 20 percent or more of such stock.
29 Bill Part A § 4; Tax Law § 208.5(d).
30 Id.
31 Bill Part A § 4; Tax Law § 208.5(e).
32 Bill Part A § 4; Tax Law § 208.6-a(a).
33 Bill Part A § 4; Tax Law § 208.6-a(b).
34 Bill Part A § 4; Tax Law § 208.6-a(c).
35 Bill Part A § 4; Tax Law § 208.6(a) & (6-a)(d).
36 Bill Part A § 18; Tax Law § 210-C.4(e).
37 Bill Part A § 4; Tax Law §§ 208.6 and 208.6-a.
38 Id.
39 Bill Part A § 18; Tax Law § 210-C.4(e).
40 Bill Part A §§ 4, 91, 92, 94, 95, 96, 97 and 08; Tax Law § 208.9(o), 292(a)(6)(B), and 1503(b)(14)(B); Administrative Code of NYC §§ 11-506, 11-602, 11-641, and 11-1712.
41 Bill Part A § 19; Tax Law § 211.5.
42 Bill Part A § 12; Tax Law § 210.1 (a)(viii)(1).
43 Bill Part A § 12; Tax Law § 210.1 (a)(viii).
44 Bill Part A § 12; Tax Law § 210.1 (a)(viii)(2).
45 Bill Part A § 12; Tax Law § 210.1 (a)(viii)(4).
46 Bill Part A § 12; Tax Law § 210.1 (a)(viii)(3).
47 Bill Part A § 17; Tax Law § 210-B.28.
48 Bill Part A § 17; Tax Law § 210-B.28 (c)(i)-(iii).
49 Bill Part A § 17; Tax Law § 210-B.28 (d).
50 Bill Part A § 17; Tax Law § 210-B.28 (f).
51 Bill Part A § 17; Tax Law § 210-B.28 (e); 182.
52 Bill Part A § 17; Tax Law § 210-B.28 (f) and (h).
53 Bill Part R § 5; Tax Law § 210(12)(b)(i).
54 Bill Part R § 5; Tax Law § 210(12)(b)(ii)(A).
55 Bill Part R § 14; Tax Law § 1456(i) (repealed).
56 Bill Part R § 15; Tax Law § 1511(q) (repealed).
57 Id.
58 Id.
59 Current credits in Tax Law § 210(12)-(47) for the 2014 tax year are allowed. See generally Bill § 17.
60 Bill Part A § 17; Tax Law § 210-B.46.
61 Bill Part A § 17; Tax Law § 210-B.47.
62 Bill Part A § 16; Tax Law § 210-A(1) and (10).
63 Bill Part A § 16; Tax Law § 210-A.5(c).
64 Bill Part A § 16; Tax Law § 210-A.5(d).
65 Bill Part A § 16; Tax Law § 210-A.3(a) and (b); A.6; A.7(a) and (b); A.9.
66 Bill Part A § 16; Tax Law § 210-A.4.
67 Bill Part A § 16; Tax Law § 210-A.8(c).
68 Bill Part A § 16; Tax Law § 210-A.5(a), (b), and (e).
69 Bill Part A § 7; Tax Law § 209-B.
70 Id.

This article is presented for informational purposes only and is not intended to constitute legal advice.

To print this article, all you need is to be registered on Mondaq.com.

Click to Login as an existing user or Register so you can print this article.

Authors
 
In association with
Related Video
Up-coming Events Search
Tools
Print
Font Size:
Translation
Channels
Mondaq on Twitter
 
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
 
Email Address
Company Name
Password
Confirm Password
Position
Mondaq Topics -- Select your Interests
 Accounting
 Anti-trust
 Commercial
 Compliance
 Consumer
 Criminal
 Employment
 Energy
 Environment
 Family
 Finance
 Government
 Healthcare
 Immigration
 Insolvency
 Insurance
 International
 IP
 Law Performance
 Law Practice
 Litigation
 Media & IT
 Privacy
 Real Estate
 Strategy
 Tax
 Technology
 Transport
 Wealth Mgt
Regions
Africa
Asia
Asia Pacific
Australasia
Canada
Caribbean
Europe
European Union
Latin America
Middle East
U.K.
United States
Worldwide Updates
Registration
Mondaq Ltd requires you to register and provide information that personally identifies you, including what sort of information you are interested in, for three primary purposes:
  • To allow you to personalize the Mondaq websites you are visiting.
  • To enable features such as password reminder, newsletter alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our information providers who provide information free for your use.
  • Mondaq (and its affiliate sites) do not sell or provide your details to third parties other than information providers. The reason we provide our information providers with this information is so that they can measure the response their articles are receiving and provide you with information about their products and services.
    If you do not want us to provide your name and email address you may opt out by clicking here
    If you do not wish to receive any future announcements of products and services offered by Mondaq you may opt out by clicking here

    Terms & Conditions and Privacy Statement

    Mondaq.com (the Website) is owned and managed by Mondaq Ltd and as a user you are granted a non-exclusive, revocable license to access the Website under its terms and conditions of use. Your use of the Website constitutes your agreement to the following terms and conditions of use. Mondaq Ltd may terminate your use of the Website if you are in breach of these terms and conditions or if Mondaq Ltd decides to terminate your license of use for whatever reason.

    Use of www.mondaq.com

    You may use the Website but are required to register as a user if you wish to read the full text of the content and articles available (the Content). You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these terms & conditions or with the prior written consent of Mondaq Ltd. You may not use electronic or other means to extract details or information about Mondaq.com’s content, users or contributors in order to offer them any services or products which compete directly or indirectly with Mondaq Ltd’s services and products.

    Disclaimer

    Mondaq Ltd and/or its respective suppliers make no representations about the suitability of the information contained in the documents and related graphics published on this server for any purpose. All such documents and related graphics are provided "as is" without warranty of any kind. Mondaq Ltd and/or its respective suppliers hereby disclaim all warranties and conditions with regard to this information, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. In no event shall Mondaq Ltd and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use or performance of information available from this server.

    The documents and related graphics published on this server could include technical inaccuracies or typographical errors. Changes are periodically added to the information herein. Mondaq Ltd and/or its respective suppliers may make improvements and/or changes in the product(s) and/or the program(s) described herein at any time.

    Registration

    Mondaq Ltd requires you to register and provide information that personally identifies you, including what sort of information you are interested in, for three primary purposes:

    • To allow you to personalize the Mondaq websites you are visiting.
    • To enable features such as password reminder, newsletter alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
    • To produce demographic feedback for our information providers who provide information free for your use.

    Mondaq (and its affiliate sites) do not sell or provide your details to third parties other than information providers. The reason we provide our information providers with this information is so that they can measure the response their articles are receiving and provide you with information about their products and services.

    Information Collection and Use

    We require site users to register with Mondaq (and its affiliate sites) to view the free information on the site. We also collect information from our users at several different points on the websites: this is so that we can customise the sites according to individual usage, provide 'session-aware' functionality, and ensure that content is acquired and developed appropriately. This gives us an overall picture of our user profiles, which in turn shows to our Editorial Contributors the type of person they are reaching by posting articles on Mondaq (and its affiliate sites) – meaning more free content for registered users.

    We are only able to provide the material on the Mondaq (and its affiliate sites) site free to site visitors because we can pass on information about the pages that users are viewing and the personal information users provide to us (e.g. email addresses) to reputable contributing firms such as law firms who author those pages. We do not sell or rent information to anyone else other than the authors of those pages, who may change from time to time. Should you wish us not to disclose your details to any of these parties, please tick the box above or tick the box marked "Opt out of Registration Information Disclosure" on the Your Profile page. We and our author organisations may only contact you via email or other means if you allow us to do so. Users can opt out of contact when they register on the site, or send an email to unsubscribe@mondaq.com with “no disclosure” in the subject heading

    Mondaq News Alerts

    In order to receive Mondaq News Alerts, users have to complete a separate registration form. This is a personalised service where users choose regions and topics of interest and we send it only to those users who have requested it. Users can stop receiving these Alerts by going to the Mondaq News Alerts page and deselecting all interest areas. In the same way users can amend their personal preferences to add or remove subject areas.

    Cookies

    A cookie is a small text file written to a user’s hard drive that contains an identifying user number. The cookies do not contain any personal information about users. We use the cookie so users do not have to log in every time they use the service and the cookie will automatically expire if you do not visit the Mondaq website (or its affiliate sites) for 12 months. We also use the cookie to personalise a user's experience of the site (for example to show information specific to a user's region). As the Mondaq sites are fully personalised and cookies are essential to its core technology the site will function unpredictably with browsers that do not support cookies - or where cookies are disabled (in these circumstances we advise you to attempt to locate the information you require elsewhere on the web). However if you are concerned about the presence of a Mondaq cookie on your machine you can also choose to expire the cookie immediately (remove it) by selecting the 'Log Off' menu option as the last thing you do when you use the site.

    Some of our business partners may use cookies on our site (for example, advertisers). However, we have no access to or control over these cookies and we are not aware of any at present that do so.

    Log Files

    We use IP addresses to analyse trends, administer the site, track movement, and gather broad demographic information for aggregate use. IP addresses are not linked to personally identifiable information.

    Links

    This web site contains links to other sites. Please be aware that Mondaq (or its affiliate sites) are not responsible for the privacy practices of such other sites. We encourage our users to be aware when they leave our site and to read the privacy statements of these third party sites. This privacy statement applies solely to information collected by this Web site.

    Surveys & Contests

    From time-to-time our site requests information from users via surveys or contests. Participation in these surveys or contests is completely voluntary and the user therefore has a choice whether or not to disclose any information requested. Information requested may include contact information (such as name and delivery address), and demographic information (such as postcode, age level). Contact information will be used to notify the winners and award prizes. Survey information will be used for purposes of monitoring or improving the functionality of the site.

    Mail-A-Friend

    If a user elects to use our referral service for informing a friend about our site, we ask them for the friend’s name and email address. Mondaq stores this information and may contact the friend to invite them to register with Mondaq, but they will not be contacted more than once. The friend may contact Mondaq to request the removal of this information from our database.

    Emails

    From time to time Mondaq may send you emails promoting Mondaq services including new services. You may opt out of receiving such emails by clicking below.

    *** If you do not wish to receive any future announcements of services offered by Mondaq you may opt out by clicking here .

    Security

    This website takes every reasonable precaution to protect our users’ information. When users submit sensitive information via the website, your information is protected using firewalls and other security technology. If you have any questions about the security at our website, you can send an email to webmaster@mondaq.com.

    Correcting/Updating Personal Information

    If a user’s personally identifiable information changes (such as postcode), or if a user no longer desires our service, we will endeavour to provide a way to correct, update or remove that user’s personal data provided to us. This can usually be done at the “Your Profile” page or by sending an email to EditorialAdvisor@mondaq.com.

    Notification of Changes

    If we decide to change our Terms & Conditions or Privacy Policy, we will post those changes on our site so our users are always aware of what information we collect, how we use it, and under what circumstances, if any, we disclose it. If at any point we decide to use personally identifiable information in a manner different from that stated at the time it was collected, we will notify users by way of an email. Users will have a choice as to whether or not we use their information in this different manner. We will use information in accordance with the privacy policy under which the information was collected.

    How to contact Mondaq

    You can contact us with comments or queries at enquiries@mondaq.com.

    If for some reason you believe Mondaq Ltd. has not adhered to these principles, please notify us by e-mail at problems@mondaq.com and we will use commercially reasonable efforts to determine and correct the problem promptly.

    By clicking Register you state you have read and agree to our Terms and Conditions