Forbes reports on great economy for investment in Africa for 2012 by Brian R. Dinning, tax lawyer

See http://www.forbes.com/sites/mfonobongnsehe/2011/12/28/top-5-investment-opportunities-in-africa-for-2012/

Forbes reports:

“African economies easily rank among the most resilient in the world. In the middle of the 2009 global economic recession, Africa was the only region apart from Asia that grew positively, at about 2%. The continent’s growth has been on an upward trajectory ever since then- 4.5% in 2010 and 5.0% in 2011.

And it will get even better in 2012. Africa is favorably positioned to become the 2nd fastest growing region in the world, and according to the International Monetary Fund (IMF), economic growth across the 54 countries of the continent will hover around 6% in 2012.

Africa is becoming an increasingly attractive hub for foreign investors in light of various economic, political and social reforms that are sweeping through the continent, resulting in a much improved business environment conducive for foreign direct investment. Apart from that, there is widespread development of critical social and physical infrastructure, and there is an increasing pool of well-educated, English-speaking, enterprising workers in most countries across the continent.”

For assistance in setting up a “B Corporation” or social benefit corporation, call Brian Dinning at (202) 262-7780

George Clooney Arrest (and Kony 2012) by Brian R. Dinning, Social Benefit Lawyer

George Clooney on Sudan and Crisis in Africa

Call it a publicity stunt (similar to Kony 2012) – but George Clooney put his life and reputation  on the line to help those in need in Africa.  Because of his activism more people know about the humanitarian crisis in Sudan today than they did yesterday, because of George Clooney’s arrest during a protest outside the country’s embassy in Washington.

George Clooney arrested Photo: REUTERS

Like George Clooney, I have dedicated my life to those in need in Africa.  My belief comes from my dedication to the service of God and to my beliefs from the Bible which tells us to care for the orphans, the widows and the needy.  So, like George Clooney, I, Brian Ray Dinning, will work to help as many people in need in Africa as I can – even if this means the loss of reputation, the loss of liberty or imprisonment by an injustice system or people or the loss of my life.  

Because some things are more than a belief.  Our great Nation and its Founding Fathers believed this to be true.  Nelson Mandela, the great freedom fighter from South Africa, believed this as well.  The care of the poor, the widows and orphans of Africa is a fight worth fighting for.  The life of a child is precious – whether in the US, Europe, Africa or elsewhere around our Earth.  Hats off to George Clooney and his father for their convictions and sacrifice.  I only hope and pray that I can help the needy children and people in Africa with the talents, gifts and abilities that God has given me and I hope that others join with us in making our World a better place for all.

B. Ray Dinning

Social Ventures now provided with new legal structure with the B Corporation by Brian Ray Dinning, JD, LLM (tax)

Passing unanimously in the Virginia House of Delegates is the new “social venture” vehicle called the “B Corporation” or “Benefit Corporation” which is a vehicle designed to promote the social ventures that I and others have been promoting in Africa and elsewhere around the world.  With the structure of a corporation and some unique characteristics of tax exempt charitable organizations, this is the wave of the future with six States adopting similar legislation and up to 18 other states with laws in the works.

Interestingly, this movement stems back to a lot of original work by nonprofit guru, Michael I. Sanders.  In helping him with research on “Partnerships and Joint Ventures Involving Tax Exempt Organizations (Wiley & Sons 1994), I learned the foundational work on social ventures which has culminated in the need for structures like Virginia’s B Corporation.

Please read the exempt from the Squire Sanders law firm website below:

As of July 1, 2011, Virginia becomes one of the early adopters among states that will permit social entrepreneurs to legally create a new corporate form known as a “benefit corporation.” This new form of corporate entity is intended to permit social entrepreneurs to codify their missions in their corporate charters. This permits the board of directors and management of a benefit corporation to pursue and take societal benefits and social goals into account in exercising their fiduciary discretion instead of being required to act strictly in the best interest of shareholders, a change that eliminates concerns over liability for breach of fiduciary duty under existing corporate law.

Pursuing Public Benefit

The law is modeled on a similar statute enacted by Maryland in 2010, and similar proposals are pending in a number of other states. Virginia’s legislation improves upon Maryland’s statute and makes Virginia the preferred jurisdiction for social entrepreneurs. Virginia’s benefit corporation statute, which is codified as Sections 13.1-782 to -791 of the Virginia Stock Corporation Act, requires that the corporation’s purpose include pursuit of “general public benefit.” The legislation broadly defines “general public benefit” to mean “a material positive impact on society and the environment taken as a whole, as measured by a third-party standard, from the business and operations of a benefit corporation.” However, it also allows benefit corporations to pursue specific public good purposes, including any benefit that serves one or more public welfare, religious, charitable, scientific, literary or educational purposes, or another purpose or benefit beyond the strict interest of the shareholders of the benefit corporation, such as:

Providing low-income or underserved individuals or communities with beneficial products or services;
Promoting economic opportunity for individuals or communities beyond the creation of jobs in the normal course of business;
Preserving or improving the environment;
Improving human health;
Promoting the arts, sciences or advancement of knowledge; or
Increasing the flow of capital to entities with a public benefit purpose.

The statute allows entrepreneurs to commit their for-profit ventures to a specific public good, requires directors and officers to take specified public good interest into account in corporate decisions and actions, and requires them to report on contributions to that goal and submit to auditing of their impact. The statute includes remedial provisions for shareholders to take action against directors and officers who fail to consider the specific public benefit in their decision making and actions. Having official “benefit corporation” status allows entrepreneurs to consider stakeholders such as employees, communities or the environment in business decisions.

Eliminating Risk of Lawsuits and Reducing Costs

Under existing corporate law, company directors may face lawsuits for acting on social objectives if contrary to the financial interest of shareholders, but this statute eliminates that risk. Social entrepreneurs have often faced difficulty fitting their hybrid missions of making money and doing good into existing business entity forms. The variety of arrangements historically utilized (e.g., nonprofits controlling for-profits) can be costly to set up and operate, and often limit the ability to raise money from outside investors. By allowing for the adoption of the “benefit corporation” form of entity, Virginia has permitted its economic institutions – in this case the laws that govern corporations – to keep up with the growing interest in the social enterprise sector.

Many expect that the new legal designation will unlock new capital for social ventures from investors who want to park their money in mission-driven companies.

Enacting the Law

Virginia Gov. Bob McDonnell (R.) signed the bill on March 26, 2011 at the end of Virginia’s legislative session. The bill, sponsored by Democratic state delegate Jennifer McClellan, passed Virginia’s Senate unanimously and passed the House of Delegates by a vote of 97-0.

BR Dinning comments on Strong Canadian Mining and Minerals Market

“Canada is in a strong mining and minerals market which provides it with significant opportunities in cross border transactions in the Mining Sector,” notes Consultant Ray Dinning of Canadian Tax Consulting and  Chairman of International Tax Partners.  Dinning is a tax attorney with 20 years of expertise in international mining transactions and he just completed a $104M metallurgical coal mine acquisition where he provided consulting, business planning, coordinated investment banking and assisted with transactional documentation.

“So many times, having a consultant on your team who can walk you through the intricacies of large law firms, large accounting firms, investment banks and the morass of international tax laws helps to close a transaction in less time and with less fees and far less headaches,” notes Dinning.

To discuss business planning, cross border transactions or tax issues, contact Dinning at canadiantaxconsulting@gmail.com or call him at (202) 262-7780.  With offices in the United States and Toronto, Canadian Tax Consulting can assist you in your company with its transactional needs.

For more information on the mining and minerals sectors in Canada, please click on the link below to read an Ernst & Young report.  Thank you.

TSX_top_100_miners

Mining and Energy Consulting to Canada and the US by Ray Dinning, JD, LLM

International Tax Partners has 20 years of experience in providing business planning, strategic consulting, mergers & acquisitions and international business structuring.  With experience in mining, energy, tax credits, business transactions and consulting on sustainability, food and water security and other matters, particularly assisting Canadian businesses in expanding into the US.

For information or assistance, call 202.262.7780 for information or assistance.

World Coal Production by Ray Dinning lawyer and energy consultant

World Coal Mining Production – by Ray Dinning

Over 5990 million tonnes (Mt) of hard coal is currently produced worldwide and 913Mt of brown coal/lignite. The largest coal producing countries are not confined to one region – the top five hard coal producers are China, the USA, India, Australia and Indonesia. Much of global coal production is used in the country in which it was produced; only around 16% of hard coal production is destined for the international coal market.

Top Ten Hard Coal Producers (2009e)
PR China	2971Mt	South Africa	247Mt
USA	919Mt	Russia	229Mt
India	526Mt	Kazakhstan	96Mt
Australia	335Mt	Poland	78Mt
Indonesia	263Mt	Colombia	73Mt

Source: International Energy Agency 2010

The last great coal reserve by Brian Dinning

That is why I have been telling members of my Profit Hunter investment service about one forgotten corner of Africa that is emerging as the world’s new energy hotspot.

You see, the former Portuguese colony of Mozambique is sitting on the Southern Hemisphere’s biggest coal reserves.

In fact, this may be the last great coal reserve in the world.

And demand for coal among energy companies and steel producers is soaring…

So those reserves are suddenly receiving a lot of attention.

The sums involved are huge…

And here at Profit Hunter, we have found a backdoor way to get a slice of the action.

The last great coal reserve in the world

Mozambique isn’t one of the first places that comes to mind when you start thinking about investment opportunities. But the former Portuguese colony on the east coast of Africa offers huge opportunities for savvy investors.

The Moatize basin in the country’s remote Tete province may be the last untapped great coal reserve in the world. Moatize holds an estimated 2.5 billion tonnes of coal. That’s enough to keep producing for decades to come. And demand is set to keep rising.

Coal is already the world’s biggest source of energy for electricity production. And it will be the second fastest growing source of energy after natural gas between now and 2030.

So there is a real investment opportunity here.

Just consider: China is building new coal-fired power plants at a rate of about one per week! And then there is India. Asia’s other giant plans on adding more than 400,000 Megawatts of new capacity by 2030 – and the bulk of that is going to be powered by coal. So, the coal story still has a long way to go.

Because coal isn’t just a vital source of energy. It is also crucial for the production of steel.

And that has attracted some of the world’s biggest companies.

The world’s biggest iron-ore producer has invested…

Brazilian steel giant, Vale do Rio Doce, will spend $1.4 billion to build a giant coal mine at Moatize. And production is set to begin by 2011. The mine is expected to produce 8.5 million tonnes of coking coal and 2.5 million tonnes of thermal coal a year. So it serves both the steel and energy industries.

That could eventually rise to as much as 40 million tonnes per year. And there is enough coal in there to keep the mine going for the next 25 years.

Vale is the world’s biggest iron-ore producer. It supplies more than a third of the world’s iron-ore exports. So the sheer size of their investment in Moatize tells you how big a profit opportunity they have spotted here.

And so has the world’s biggest steel producer…

But Vale isn’t the only one trying to get its hands on Mozambique’s coal. Steel giant Arcelor-Mittal bought 35 per cent of the Rio Minjova company, which owns coal exploration rights in Tete. And it’s got the option to become the majority owner if exploration proves successful. Arcelor-Mittal is the world’s biggest steel company. It is controlled by Britain’s richest man – Lakshmi Mittal.

Then there is India’s Tata Steel. These are the chaps who bought Anglo-Dutch steel company Corus in 2006. Now it has teamed-up with Australia’s Riversdale Mining and is carrying out a feasibility study to produce coal from land on which it holds rights in Mozambique.

“Conservation Easement” tax benefit extended through 2011 by Brian Dinning, Esq.

Congress Extends Significant Tax Incentives for Conservation Easement Donations

December 20, 2010 – On December 16, 2010, Congress extended significant tax incentives for conservation easement donations. A conservation easement is a voluntary and flexible legal agreement between a landowner and a land trust or government entity. A conservation easement places binding restrictions on the use of real property in perpetuity to protect the property’s conservation values. Generally, landowners who place a conservation easement on their land continue to privately own and use the property as a working farm, ranch, or tree farm. Under IRC 170(h), the appraised value of a donated conservation easement qualifies as a charitable deduction. The enhanced conservation easement incentive:

• Raises the charitable deduction limit from 30% to 50% of the donor’s adjusted gross income;
• Allows “qualified farmers and ranchers”1 to deduct up to 100% of their adjusted gross income;
• Allows a closely held C-Corporation to deduct 100% of its adjusted gross income if the C-Corporation derives 50% or more of its income from farming and the C-Corporation is not publicly traded on a recognized exchange;
• Allows shareholders in S-Corporations to deduct up to 100% of their adjusted gross income if they are a “qualified farmer or rancher.” The charitable deduction is not limited to the shareholder’s basis in the S-Corporation; and
• Extends the carry-forward period for all donors to use the tax deductions from 5 to 15 years.

 

Energy Grants under Section 1603 by Brian Dinning

Presentation on 1603

For information or assistance, call Mr. Dinning at 757.232.2619.