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  • Further changes to the tax code were signed into law by President Putin on July 24 2002. The amended law has eliminated the ambiguity as to whether an in-kind share capital contribution made at a value exceeding the net book value of the contributed property (according to the accounts or tax books of the contributing party) gives rise to an immediate taxable gain for the contributing party. The law has put an end to this uncertainty.
  • As of January 1 2002, there is in effect an income tax treaty between Luxembourg and Mexico (the Treaty). This treaty not only adds an important European finance centre to Mexico's already broad tax treaty network but it also normalizes Luxembourg's status for tax purposes within the terms of Mexican law.
  • Kohlberg Kravis Roberts & Co together with Wendel Investissement have announced the leveraged buyout of Legrand from Schneider Electric. The transaction has a value of over Eu5.1 billion ($4.9 billion) and represents Europe's biggest ever private equity financed leveraged buyout. The acquisition will be financed by debt jointly arranged by CSFB, Lehman Brothers, and the Royal Bank of Scotland.
  • White & Case has expanded its New York tax team by luring a partner from King & Spalding. Raymond Simon joined the firm on August 1 as a tax partner focusing on the leasing practice. His work will focus on servicing domestic and cross-border leverage leasing with existing White & Case Partner Jim Hayden. Simon had been approached several times over the last few years by White & Case but finally left King & Spalding on July 31. He describes one of the reasons for his move as being attracted to the broader range of work he'll be able to undertake at White & Case. ?I worked with Jim back in 1988 so have known them for almost 14 years,? he says. ?They're a nice group of people and I wasn't looking to leave but we started talking and suddenly it made sense. I will be able to do not just equity work but also to further develop the lessee practice.
  • Michael Molenaars: clients will welcome this strenghthening of the practice The Dutch and Belgian law firm Stibbe is launching a tax practice in the UK. Michael Molenaars, a partner in the New York tax group of Stibbe is moving to London in September 2002 to lead the group.
  • McDermott Will & Emery has strengthened its tax group across the US with two lateral partner hires
  • Ernst & Young and Andersen have been given approval by Europe’s competition watchdog to merge their operations in Germany
  • Five partners from the defunct Andersen have joined RSM Robson Rhodes, a UK professional services firm, to form a compensation tax consulting division within the corporate practice
  • A group of tax havens has stepped up its pressure on the OCED to address the use of corporate vehicles for illicit purposes within its own membership before taking action against non-OECD countries
  • CMS Bureau Francis Lefebvre is strengthening its New York tax group after hiring a senior associate from Linklaters in Paris