Tax Law News

London-based international law firm Watson Farley & Williams has advised TUI Cruises GmbH on its acquisition of Hapag-Lloyd Cruises from TUI AG for US$1.3bn, excluding net debt.According to the the transaction is subject to customary closing conditions and regulatory approvals and is expected to close in summer 2020. The deal includes the acquisition of HL Cruises’ luxury and expedition fleet, consisting of two five-star plus luxury vessels and three expedition cruise ships, by TUI Cruises. This expands TUI Cruises’ existing fleet to twelve cruise ships, which will enable it to participate in the growth of the cruise industry as the…

VLCC owner DHT Holdings announced that its Co-CEOs have relocated to Singapore. The relocation follows changes in the tax law in Norway from 2019 for tax residency of companies formed outside of Norway.The crude oil tanker company said that the new legislation takes into account the place of daily management as well as the place of management and control on board level. The Company's tax residency will remain unchanged in Bermuda.The Company's office in Singapore will hold senior management, chartering, operations, newbuilding supervision and technical management whereas the Company's office in Norway will retain functions within finance, accounting, investor relations, chartering and operations.DHT's fleet trades internationally and consists of crude oil tankers in the VLCC segments.

Watson Farley Williams  (WFW) advised NYK Nippon Yusen Kabushiki Kaisha  (NYK) on the execution on 26 January 2018 of its long-term charter contract with EDF LNG Shipping, a subsidiary of the electricity major, Electricité de France (EDF). The contract is for the chartering of a newly built liquefied natural gas (LNG) carrier for seven years, with optional extension periods for up to thirteen additional years. WFW also worked closely with the commercial and in-house legal teams at NYK, Hyundai Samho Heavy Industries and EDF on the construction arrangements for the vessel for the project. The LNG carrier will be built by Hyundai Samho Heavy Industries in Korea and is due for delivery in 2020.

Anadarko Petroleum Corp on Tuesday beat analysts' estimate for quarterly profit, helped by improved crude oil prices and lower costs. Crude prices are recovering from the lows hit in 2016 after a global crude oil glut. The company cut its 2018 capital investment outlook to a range of$4.1 billion to $4.5 billion, from $4.2 billion to $4.6 billion it previously forecast. Total full-year sales volume outlook was cut to a range of 238-248 million barrels of oil equivalent (MMBOE) from 245-255 MMBOE.

In 2009, the U.S. offshore marine sector received a long over-due indication that the U.S. Customs and Border Patrol (CBP) was preparing to close loopholes and enforce U.S. law in accordance with the Jones Act. This happened when the agency unhesitatingly issued its first revocation of more than 20 letter rulings that were inconsistent with the U.S. law of the land – the Jones Act. Almost immediately there was an outcry from foreign interests who claimed, untruthfully, that this…

Awareness of the ways of calculating loss of earnings claims can be useful in both presenting and challenging this type of claim. This Gard Insight looks at some general principles and methods applied by the courts. A product tanker was hit by a bulker while at berth. Although the extent of the physical repairs - and therefore the repair costs - were relatively limited, the damaged tanks required stainless steel plates which had to be specially ordered. Long lead times led to a significant loss of earnings. As owners were able to document this loss with care and precision, leaving little room for doubt, the case against the owners of the bulker was settled quickly and amicably.

PPG Industries (NYSE:PPG) reported record first quarter 2014 net sales from continuing operations of $3.6 billion, up $528 million, or 17 percent, versus the prior year. First quarter 2014 reported net income from continuing operations was $277 million, or $1.97 per diluted share. operations was $279 million, or $1.98 per diluted share, which excludes $2 million, or 1 cent per diluted share,for acquisition-related costs. First quarter 2013 reported net income and earnings per diluted share from continuing operations were $191 million and $1.29 respectively, and adjusted net income from continuing operations was $207 million, or $1.39 per diluted share, respectively.

When BG Group Plc announced last week it was shifting the headquarters of its oil and liquefied natural gas (LNG) trading operation to Singapore from Britain, it said the aim was to get closer to its customers. Analysts and consultants agreed that the growing importance of Japanese and Korean utilities in the LNG market meant the move would have clear logistical and commercial benefits. But they also said another motivation was likely at play: tax. "Tax is always a factor," said Bob Piller, a Swiss-based energy trading consultant who previously worked for commodities giant Vitol.

MarineNews spoke with industry experts to get an overview of the passenger vessel market as it stands today, including a legislative update and business leaders’ insights on pricing, ridership and vessel construction and renovation. Actions in Congress this year provided a mixed bag for passenger vessel operators. Because of the new tax law, private operators will be able to take advantage of an immediate 100% depreciation deduction for capital investments made in 2011. Also,…

The new law states that the deduction value of a donated boat, yacht or ship is limited to the gross proceeds of a sale by the charity on the open market. There is however, exceptions to the gross proceeds rule which will allow you to deduct the fair market on the date it was donated. An acknowledgement by the receiving charity, that it will make a significant intervening use of the boat or yacht, a detailed statement by the charity of its intended use, the duration of that use and a certification that the boat or yacht will not be sold for a period of at least three years. An acknowledgement by the receiving charity that it intends to make material improvements to the boat or yacht increasing it’s value…

In an unpublished decision, the U.S. Court of Appeals for the Fifth Circuit ruled that a gaming vessel is tangible personal property for purposes of Mississippi tax law. In the instant case, a shipyard converted a barge into a gaming vessel. After the work was completed and the shipyard was paid, the shipyard filed for bankruptcy under Chapter 11 of the Bankruptcy Code. The Mississippi State Tax Commission asserted that taxes should be paid on monies received for work on the gaming vessel. Under Mississippi law, taxes are due on a percentage of monies earned with certain exceptions. One of the exceptions relates to constructing, repairing, or adding to personal property.

State officials are negotiating modifications of state oil and gas royalty terms on offshore Beaufort Sea leases held by Eni US Operating Inc. Most of Eni's leases on the project now require a 16.6 percent royalty on gross production revenues. Some leases are 12.5 percent gross royalty with an additional 30 percent share of net profits paid to the state. Eni is proposing to develop heavy oil from one shallow reservoir interval and conventional light oil from a deeper reservoir section in the project, which underlies shallow waters offshore the producing Kuparuk River field on the North Slope. Eni has told state officials it hopes to secure corporate approval for development by the end of 2007 and have Nikaitchuq in production in 2009. On Oct.

Carnival Corporation reported net income of $500.8 million ($0.85 Diluted EPS) on revenues of $1.44 billion for its third quarter ended August 31, 2002, compared to net income of $495 million ($0.84 Diluted EPS) on revenues of $1.49 billion for the same quarter in 2001. Net income for the nine months ended August 31, 2002 was $824.6 million ($1.40 Diluted EPS) on revenues of $3.33 billion, compared to net income of $809.9 million ($1.38 Diluted EPS) on revenues of $3.58 billion for the same period in 2001. Earnings for the third quarter of 2002 included a $34 million income tax benefit from the company's Costa Cruise operation resulting from a new Italian investment tax law. This was partially offset by a provision of $20 million related to a vessel write-down.