BUYING, SELLING, MERGING A MEDICAL PRACTICE
What Today’s Physician Needs To Know

Mathew J. Levy. Esq. – Kern, Augustine, Conroy & Schoppmann, PC
Pro and Cons of Merging Your Medical Practice
William Katz – National Financial network, LLC
Financial Benefits of a Merged Practice
John Pelliteri – Grassi & Co.
Using Due Diligence, Structure and Integration in Practice Mergers

Presented by:
MEDICAL RESOURCE GROUP
Comprehensive Resources for Medical Practices
www.medresgrp.com

WEDNESDAY June 13, 2012

SIGN IN 6:30P

PROGRAM 7:00P-8:30P
LIGHT REFRESHEMENTS WILL BE SERVED
at the Nassau Academy of Medicine
1200 Stewart Ave. Garden City

 Please print, fill out and fax back this form to RSVP your attendance

PRE-REGISTRATION IS REQUIRED DUE TO LIMITED SEATING

Article suggested by: Steven Goldstein, CPA, PFS, Partner

June 20 (Afternoon/Evening) – June 21 (All Day) – June 22 – (Half Day)

Westchester Country Club 99 Biltmore Avenue, Rye, New York 10580

The Grassi & Co. Construction Executive Forum is an industry-specific forum for owners and senior executives within the Metro New York region. The forum offers you the opportunity to join with other industry executives and thought leaders to share and explore knowledge and experience. Topics covered include:

• Financial Mangement
• Public-Private Partnerships (P3s)
• Risk Management
• Tax Issues Impacting the Industry

The small-group setting will provide an opportunity to not only gain valuable knowledge and updates from top industry specialists, but also to interact and network with your peers. The forum also includes golf (limited tee times available), two cocktail receptions and sit-down dinners, and a great opportunity for networking!

Dates:

Wednesday, June 20:

• Golf Registration 12:00 p.m. – 12:45 p.m. (Optional Activity)
• Golf 1:00 p.m. – 5:00 p.m. (Optional Activity)
• Full Program Registration 5:00 p.m. – 6:00 p.m.
• Kick-Off Reception/Dinner 6:00 p.m. – 9:30 p.m.

Thursday, June 21:

• Breakfast 7:30 a.m. – 8:15 a.m.
• Program 8:15 a.m. – 5:00 p.m.
• Cocktails/Dinner 6:00 p.m. – 9:30 p.m.

Friday, June 22:

• Breakfast 7:45 a.m. – 8:30 a.m.
• Program 8:30 a.m. – 12:00 p.m.

Cost:

• Forum + Golf*  $1,350
• Forum only  $995

* Due to a limited number of tee times, Golf option will be on a first come first serve basis  

Location:

Westchester Country Club

Grassi & Co. guest rate is $199 per room, per night. Room rate is exclusive of applicable state and local taxes or applicable service and/or hotel-specific fees.

Please call 914.798.5260 for hotel reservations

Reservations are on a first-come, first-served basis

This course qualifies for CPA – CPE credit. Hours yet to be determined.

If you have any other questions regarding the forum, please contact our marketing team at marketing@grassicpas.com. 

Cancellation Policy: You may cancel your reservations and receive a full refund if you inform us of your cancellation by Friday, May 18, 2012. Cancellations made by Friday, June 1, 2012 will receive a 50 percent refund. There is no refund for cancellations made after June 1, 2012.  No-shows will also be charged the full amount. You may send a substitute to attend in your place and incur no penalty as long as they are from the same organization. However, we ask that you give us at least 10 days notice.

Grassi & Co. Construction Executive Forum Sponsors

David was also quoted in last month’s The Trusted Professional regarding the future of nonprofits.  To read more click here.

Congratulations, David!

By: Rahul Sheth, CPA, CA, Audit Manager

The 2012 Budget presented on March 16, 2012 by India’s Finance Minister has jolted the foreign investor community. The budget proposes a number of regressive, retrograde and extraterritorial provisions that would significantly increase tax costs and alter the dynamics of cross-border transactions and M&A activities. One of the measures provides that indirect share transfers outside India would be subject to tax in India retroactively, effectively overruling the Indian Supreme Court’s decision in favor of the taxpayer in the landmark Vodafone case.

The general anti-avoidance rules (“GAAR”), which were proposed in the 2012 budget, will give Indian tax authorities the ability to tax offshore share transfers, a move which will critically impact foreign investors. Under the proposed GAAR, the taxpayer would have the burden of proving that a tax benefit was not the main purpose of an arrangement. Currently, GAAR is being deliberated by the Indian Parliament and its outcome is uncertain. However, we believe the proposals will be passed by the Indian Parliament in response to significant pressure to lower India’s fiscal deficit. India’s Finance Minister, Mr. Mukherjee, is strong on his stand to implement the retroactive tax and argues that “other countries have done so.”

Vodafone Case - the Hutchison-Vodafone transaction in 2007 involved the transfer of shares by Hutchison to Vodafone of an overseas holding company that indirectly held the shares in an Indian company. The tax authorities initiated proceedings against Vodafone, the overseas acquiring entity, for not withholding approximately USD$2.2 billion in tax on the payment of the sales consideration to Hutchinson, the overseas entity that sold the shares. Vodafone took the position that it was not required to withhold tax because the transfer by Hutchison was of a capital asset situated outside India.

The Supreme Court ruled in January 2012 that the Indian tax authorities could not tax the capital gains derived by Hutchison on the sale of the shares because the transaction was structured as a deal between two foreign entities. On March 20, 2012, the Supreme Court rejected the government’s petition to review the decision.

In the wake of the decision in Vodafone, it was expected that the Indian government would introduce rules that would allow India to tax cross-border transactions in which the underlying assets are located in India, although the retroactive nature of the rules was unexpected. However, on March 16, 2012, the Finance Minister introduced proposals in the budget to retroactively tax such cross-border transactions and now all eyes are on the Indian Parliament to see if these proposals will be accepted or rejected.

The tax case became a symbol for many foreign investors of the uncertainty of doing business in India, the unpredictability of regulators and the risks foreign firms face if they decide to make big bets on Indian growth.

Currently, foreign investors are holding off new deals and investments in India until tax rules are clear and Parliament’s decision on these proposals in 2012 budget.

We will keep you informed on new development in this regard.

Alerts Coming up – 1) latest development on revision of tax treaty between India and Mauritius 2) Mauritius’s latest introduction of Limited Partnership Act.

The craziness of tax season is over allowing businesses to focus on other parts of their organization and personal lives.  Some areas to focus on are:

• The 2012 Unified Tax Credit
  The unified credit for the calendar year 2012 is increased to $1,772,800 which exempts $5,120,000 from tax. The unified credit applies to both gift tax and estate tax. Currently, estates and gifts in excess of the exemption amount are subject to a top tax rate of 35%. Unless legislation is passed, effective January 1, 2013 the tax exemption is scheduled to drop from $5,120,000 to $1,000,000 and the top estate and gift tax rate increased from 35% to 55%..  Proper planning needs to take place now and before 2012 is over.

• Succession Planning
  Now is the time to update your will, health proxy and durable power of attorney  in case you are ever unable to speak for yourself.  Determine if you have a succession plan in place and if it needs to be amended

• Retirement Contributions
  The Maximum 401K Contribution in 2012 is now $17,000! That’s right; we finally got an increase for the first time in 4 years.  The catch-up contribution limit for those aged 50 and over remains unchanged at $5,500.  Be sure to put the maximum away which is tax deductible.

• Prepare for a Possible Change in Tax Cuts
  In 2013, the Bush tax cuts are set to expire, which could trigger higher taxes for individuals in higher tax brackets. The cuts had been set to expire this year, but Congress and the White House extended them. If they expire, the tax rate on long-term capital gains will increase from the current 15 percent to 20 percent. Tax rates on ordinary income will also increase and, since short-term capital gains are taxed as ordinary income, those rates will rise, too.  Now is the time to game plan if it is the right time to sell or hold security positions.

Steven Goldstein, CPA, PFS is a Partner at Grassi & Co.  For more information on this or other related topics, you can contact him directly at 212-223-5034 or via email at sgoldstein@grassicpas.com.