Elicit Solutions Europe

Notional Interest Deduction - 31 October 2017
As has been announced by the Minister for Finance in his 2017 Malta Budget Speech, the Notional Interest Deduction (NID) was introduced through specific Rules, effective as from year of assessment 2018. The Rules aim to approximate the tax treatment of equity with that of debt.
Corporate income tax systems usually discriminate between the different sources of finance. They favour debt over equity financing: return (interest) on debt is deductible for tax purposes whereas the return on the equity is not, yet the latter is the riskier of the two. This unequal treatment could be the cause of certain problems such as excessive leverage and an increased vulnerability to economic crises, disadvantages for firms with restricted access to external funds and profit shifting incentives.
NID was introduced to achieve an equal treatment of debt and equity financing, by granting an additional deduction for the return on equity financing.

Implementing Change Successfully

We live in a world where "business as usual" is change. New initiatives, project-based working, technology improvements, staying ahead of the competition – these things come together to drive ongoing changes to the way we work.

Whether you're considering a small change to one or two processes, or a system wide change to an organization, it's common to feel uneasy and intimidated by the scale of the challenge.

You know that the change needs to happen, but you don't really know how to go about delivering it. Where do you start? Whom do you involve? How do you see it through to the end?

There are many theories about how to "do" change. One of them originated from Kotter - a professor at Harvard Business School and world-renowned change expert. Kotter introduced his 8-step change process in his 1995 book, "Leading Change."

Step 1: Create Urgency
Step 2: Form a Powerful Coalition
Step 3: Create a Vision for Change
Step 4: Communicate the Vision
Step 5: Remove Obstacles
Step 6: Create Short-Term Wins
Step 7: Build on the Change
Step 8: Anchor the Changes in Corporate Culture

For more details, 'like' our page and you will receive more information on managing change in the coming days.

Today we are going to increase our knowledge in Finance.
Like our page 'Elicit Solutions Europe' to find out more about 'FUTURES'...
Futures are financial contracts obligating the buyer to purchase an asset or the seller to sell an asset, such as a physical commodity or a financial instrument, at a predetermined future date and price. Futures contracts detail the quality and quantity of the underlying asset; they are standardized to facilitate trading on a futures exchange. Some futures contracts may call for physical delivery of the asset, while others are settled in cash.

The futures markets are characterized by the ability to use very high leverage relative to stock markets. Futures can be used to hedge or speculate on the price movement of the underlying asset. For example, a producer of corn could use futures to lock in a certain price and reduce risk, or anybody could speculate on the price movement of corn by going long or short using futures.
The primary difference between options and futures is that options give the holder the right to buy or sell the underlying asset at expiration, while the holder of a futures contract is obligated to fulfill the terms of his contract. In real life, the actual delivery rate of the underlying goods specified in futures contracts is very low as the hedging or speculating benefits of the contracts can be had largely without actually holding the contract until expiry and delivering the good. For example, if you were long in a futures contract, you could go short in the same type of contract to offset your position. This serves to exit your position, much like selling a stock in the equity markets closes a trade.

Futures Speculation
Futures contracts are used to manage potential movements in the prices of the underlying assets. If market participants anticipate an increase in the price of an underlying asset in the future, they could potentially gain by purchasing the asset in a futures contract and selling it later at a higher price on the spot market or profiting from the favorable price difference through cash settlement. However, they could also lose if an asset's price is eventually lower than the purchase price specified in the futures contract. Conversely, if the price of an underlying asset is expected to fall, some may sell the asset in a futures contract and buy it back later at a lower price on the spot.

Futures Hedging
The purpose of hedging is not to gain from favorable price movements but prevent losses from potentially unfavorable price changes and in the process, maintain a predetermined financial result as permitted under the current market price. To hedge, someone is in the business of actually using or producing the underlying asset in a futures contract. When there is a gain from the futures contract, there is always a loss from the spot market, or vice versa. With such a gain and loss offsetting each other, the hedging effectively locks in the acceptable, current market price.

Where are you going? In your life, that is. Many people struggle with this seemingly obvious question. Want to see the evidence of this struggle? During the week, ask five random people what they don’t want out of life. They will say: I don’t want to keep the same income and job I have now. I don’t want my spouse to nag me about money and time spent at home. I don’t want to keep driving this same crappy car for another year. The “I don’t wants” always flow out easily. So easily, that sometimes they seem like they have been rehearsed! It’s as if people are constantly thinking about them. And why is that? Because, they are. So after you ask these people what they don’t want out of life, and they’re ticking off their fifth or sixth item, stop them abruptly, pause for a second, and say, “Okay, I understand what you don’t want out of life. Now let me ask you this, what do you want out of life?” This is where things get interesting. After you ask this question, you’ll see puzzlement, followed by a creased brow. They’re starting to think about what you asked. Their reactions will be the polar opposite of the reactions they had when you asked what they don’t want out of life. Many people will respond, “Well, that’s a good question” or “I’ll have to think about that one.” It’s like they’re saying, I’m not sure where I actually do want to go.” What happens then? You end up nowhere! You end up unable to reach your destination because you only know where you don’t want to go. Sounds pretty simple right? Once you understand this, you’ll see why this may be the biggest reason you are holding yourself back from breaking through to the next level. So, let me ask you a question: Do you know anyone who fits this description? Someone who has an easier time expressing what they don’t want out of life than expressing what they do want? Maybe a friend, a relative, or a spouse who goes through life this way? Maybe, even someone a little closer to you, that someone you see when you look in the mirror after rolling out of bed each morning? You see, what’s crazy about today’s society is that everybody is racing around with “Ferrari brains” but no one has her GPS on! And here’s the unfortunate truth for a society like this: It doesn’t matter how fast you can go, it doesn’t matter how much passion you have, and it doesn’t matter how much energy you put into something. If you don’t have a vision and clarity on the destination you want to reach, you’ll simply never get there. The reason I call it a Ferrari brain is because you can buy the most expensive Ferrari in the world and drive as fast as you possibly can, but if don’t know where you’re going, you’ll get nowhere quickly. 98% of the people around us are running on a treadmill wondering why they aren’t getting where they want to go, or driving in a Ferrari with no GPS and wondering why they just drove into a lake. Here are things I hear far too often: “I need more hours in a day. I wish I could clone myself or find good help. I never have enough time to do my own business or take my business to the next level, or get a promotion, or make more money.” Most people think they need 36 hours in a day, when in reality they are just lacking a crystal clear vision of what they want out of their own personal lives. Did Bill Gates or Mark Zuckerburg have 36 hours in a day on their path to success? If you feel overwhelmed daily because of a lack of time, distractions, or your own procrastination, I bet you don’t accurately know where you want to go in life. When you have no idea about your direction, you tend to spend your time doing things that are preventing you from making more money, receiving promotions, seeing your family more, or even just enjoying life at an optimal level. And while you’re doing these things that are in no way serving your future, you’re forced to say no to doing the things that could further your business, your income, and your happiness. On the flip side, when you have a clear vision for your life, you’ll stop wasting time on the things not serving your dreams, your goals, or your aspirations. Your actions will have purpose and your hours will be spent achieving those goals. Your procrastination will cease because you’ll know with 100% certainty what you cannot put off until tomorrow. Once you develop a vision for yourself, things will become so clear. We all know that setting goals is an extremely important part of success. I believe that Benjamin Franklin was one of the first people ever who documented his goals and knew where he wanted to go in life. Sometimes setting goals is hard when so much around you is noisy, busy, and even scary. But together we are first going to get honest about where you are in life right now. Then the only thing left is learning how to do it.

Do not waste time! Pursue your dreams!

We are all in this world for a mission, a purpose. Identify your talents, develop your skills and proceed. Start by communicating your dreams to the people around you. Show them that your plans are realistic. Listen! Those who care about you, will encourage and support you. They will participate in your planning. They will commit and engage in the ex*****on of your plans. If you do not find support from the people around you, do not waste more time with them. Don't let anyone dissuade you from pursuing your dreams. But don't forget that you need to identify risks and develop a high-level mitigation strategy. When you are confident, take action! Don't just sit there and wait for the next opportunity. Create that opportunity! Don't wait for people to buy your idea..Go out and sell your idea to the ones who really care about you. Good Luck!