March 2024

YOUR GUIDE to navigating
a complex and ever-changing
global business environment
from professional service
firms across the globe

EMBRACING ESG“Consumers
expect companies
to demonstratecommitment to
the planet andits people.”
Isabella Bertani
BERTANI

p8

GLOBAL MOBILITYPaul Beare explains UK
immigration post-Brexit

GLOBAL MOBILITY

Dunstan Magro on sustainable
immigration in Malta

35
IR Global
members
share theirinsight on
key topics
facing theindustry
today

DISPUTES

Thomas H. Curran
Does AI belong todispute resolution?

HEALTHCARE

Stuart Hendry on
generative AI in MedTech

THE STATE OF AI

Claes Ottoson discusses AI
misinformation and copyright threats

INTEGRITYIMPACTQUALITY

Highest quality
bespoke advice,meeting theneeds of the mostcomplex client
requirements

FROM THE EDITOR

Developing strategies
for developing eventsCharles Scherer
info@irglobal.com

As governments worldwide began to ease their Covid policies over thecourse of 2021, many in advanced economies spoke about a ‘new normal’,or desire to ‘build back better’. The theory was that the crisis was over, and if
we were to take anything positive out of a dire event, it was that we could rebuild
in a more equitable, sustainable, and just way.
As it goes, the news cycle shows us stumbling from one global crisis toanother, with war in mainland Europe overlapping with erupting violence in the
Middle East. National debt, inflation, and tax burdens remain vast as countries,
still recovering from the economic body blows of their pandemic restrictions, fundand aid their allies in armed conflict, and absorb the impact of trade disruption.
Even if businesses or markets crave stability, they will be quite accustomed
to unpredictability. That might be especially true in 2024, when half of theworld’s population will be seeing
elections. That includes generalelections in IR Global members’
home countries like the US, theUK, Mexico, and Mauritius. Not tomention state, legislative, or local
elections in Portugal, Australia,
Malta, Poland, and Germany.
What is the response?
It is a myth that the Chinese
word for ‘crisis’ is the same as the word for ‘opportunity’, but it may be a usefulattitude nonetheless. We can’t do anything about global events, but we can control
how we respond. So, what is there to navigate in 2024?
ESG is high on the agenda, with business practices and environmental impact
under the close scrutiny of legislators and customers. It takes a great deal ofeffort to ensure that environmental damage is minimal, social impact is positive,
and corporate governance is unimpeachable. Yet, investing in those goals pays
dividends.
Attitudes to AI range from casual dismissal to existential dread, policymakers
are still trying to legislate for it, and businesses are attempting to harness it, allwhile the nature of what ‘it’ is changes almost daily. Establishing a strategy in that
context is tremendously difficult, but promises incredible competitive advantages.
The ‘new normal’ that people had initially envisioned was a world of flexibility,
when we worked how we wanted and where we wanted. However, not every
business has found hybrid work to its liking, and inflation has undermined the
dream of many digital nomads. Businesses want to attract talent and countries
want to attract entrepreneurs and investors, and finding a way to do so affordably
can unlock much-desired growth.
To use a cliché, ‘Change is the only constant’. Certainty might always be
preferable, but it is seldom realistic. In the following chapters, IR Global members
offer their unique and deeply qualified perspectives on the challenges at present
and in the near future.

“Certainty mightalways be preferable,
but it is seldom realistic.”

IR Global is a multi-disciplinary professional services
network that provides legal, accountancy, financial
advice to companies and individuals around the world.
JOIN OUR NETWORK

www.irglobal.com

IR Global is a multi-disciplinary
professional services network thatprovides legal, accountancy andfinancial advice to both companies
and individuals around the world.
Our membership consists of the highest
quality boutique and mid-sized firms
who service the mid-market. Firms
which are focused on partner led,
personal service and have extensive
cross border experience.
Represented in 165+ jurisdictions,covering over 70 unique practice areas,
we are perfectly placed to offer thehighest quality bespoke advice thatmeets the needs of the most complex
client requirements.
Since 2010, our community has grown
to 1,400+ members worldwide basedon the principles of friendship, trust
and a shared belief in going beyond the
traditional role of the adviser. Today weexist as the ‘go to’ network for forward
thinking clients looking for creative,
pragmatic and cost effective solutions.
Thomas Wheeler
Founder of IR Global"The group’s founding
philosophy was based on
cultivating a giving mentality
and creating a system which is
ethical, sustainable and always
puts clients’ interests first.”

For further information,please contact: Rachel Finch
Head of Digital & Sponsorships
rachel@irglobal.com

irglobal | 3

• CONTENTS

In this issue:

Wealth Preservation: inflation,compliance, and changing taxation
P46

EMBRACING
ESG

WEALTHPRESERVATION

P8 CANADA
Isabella Bertani, BERTANI

P48 ISRAEL
Phillip Braude, Braude Wealth

P12 BELGIUM
Steven De Schrijver, Agio LEGALP50 POLAND
Magdalena Dymkowska, MDDP Michalik Dłuska Dziedzic i Partnerzy

P16 US – OKLAHOMA
Kaitlin Flinn, CCK Strategies, PLLC

P50 POLAND
Magdalena Marciniak, MDDP Michalik Dłuska Dziedzic i Partnerzy

P16 US – OKLAHOMA
Haley Legg, CCK Strategies, PLLC

P52 US – OKLAHOMA
Eric Kunkel, CCK Strategies, PLLC

P18 HUNGARY
Dr. Jesszika Udvari, Buzády & Udvari Law Firm

EXPERT VIEW:

CANADA

Isabella Bertani
BERTANIp8

ENGLANDPaul Beare
Paul Beare Ltd

p60

P52 US – OKLAHOMA
Kaitlin Flinn , CCK Strategies, PLLCP54 PORTUGAL
Florbela Pires, CLAREIRAP54 PORTUGAL
Vera Figueiredo , CLAREIRAP56 US – NEVADALou Robinson, Alliance Trust Company

FORCED LABOUR

GLOBAL MOBILITY
P60 ENGLANDPaul Beare, Paul Beare Ltd

P20 US – TEXAS
Adrienne Braumiller, Braumiller Law Group, PLLC

P64 MALTA
Dunstan Magro, WDM International

ARBITRATION vs LITIGATION

P64 MALTA
Erika Baldacchino, WDM International

P44 US – NEW YORK
Michael Einbinder, Einbinder & Dunn LLP
AI’s controversial
role in IP anddisputes P28

P68 MAURITIUS
Vimal Damry, Premier Financial Services Limited
P70 MEXICO
Edmundo Escobar, Escobar y Gorostieta, S.C Abogados
P72 PORTUGALInês Leitão de Oliveira, Bind

US – MASSACHUSETTS

Thomas H. CurranThomas H Curran
Associates, LLC

p24
4 | irglobal

THE STATE OF AI

P72 PORTUGALRui Esperança, Bind
P36 AUSTRALIAJames Conomos, James Conomos Lawyers

P74 GERMANY
Dr. Gerd Müller-Volbehr, Müller-Volbehr Hitzer Rechtsanwälte

P24 US – MASSACHUSETTS
Thomas H. Curran, Thomas H. Curran Associates, LLC

P38 JAPAN
Kenji Kuroda, Kuroda Law Offices

P76 SWITZERLAND
Monika Naef, DUFOUR – Advokatur

P28 US – NORTH CAROLINA
Stuart Hendry, HecoAnalytics Ltd

P40 US – OHIO
Chris Niekamp, Buckingham, Doolittle & Burroughs, LLC

P78 UAE
Thomas Paoletti, Paoletti Legal Consultants LLP

P32 SWEDEN
Claes Ottoson, Independia Law Firm AB

P40 US – OHIO
Andrew Stebbins, Buckingham, Doolittle & Burroughs, LLC

P80 ANGUILLA
Nina Rodriguez , Webster LP

P32 SWEDEN
Elaine Gylling, Independia Law Firm AB

P42 VIETNAM
Stephen Le, Le & Tran Law Corporation

P82 MALTA
Chris Armstrong, Papilio Services Limited

irglobal | 5

Embracing
ESG
ESG (Environmental, Social & Governance) factors profoundly shapecorporate behaviour and investment decisions worldwide. The following
articles explore how sustainability is impacting the real estate andaccountancy sectors, whether change is being led by client priorities orlegislation, and how companies can increase their resilience to ESG.
Steven De Schrijver discusses the transformative impact of thesefactors on real estate transactions in Belgium. Where previously viewed
as risks during due diligence processes, ESG issues are now recognised
as opportunities for value creation and industry transformation. He also
highlights challenges such as “greenwashing” practices, where companies
may falsely portray adherence to ESG goals.
Meanwhile, Kaitlin Flinn and Haley Legg explore the role of ESG
in accountancy. They emphasise that, in Oklahoma, reporting is
not mandatory but is encouraged to uphold transparency and build
stakeholder trust. Client and consumer demands are driving voluntary
disclosure and influencing business strategies. Industries with highenvironmental impact, like Oil & Gas and manufacturing, face pressure todiversify into renewable energy sources but ESG considerations extend
beyond environmental aspects to encompass social implications, such ascommunity involvement and equality in hiring practices.

6 | irglobal

FEATURING...
P08

CANADA
Isabella Bertani
BERTANIP12

BELGIUM
Steven De Schrijver
Agio LEGAL

P16

US – OKLAHOMA
Kaitlin Flinn
CCK Strategies, PLLC

P16

US – OKLAHOMA
Haley Legg
CCK Strategies, PLLCP18

HUNGARY
Dr. Jesszika Udvari
Buzády & Udvari Law Firm

irglobal | 7• EMBRACING ESG

CANADA“While ESG
reporting is notmandatory for
all Canadiancompanies, moreare voluntarily
adopting it.”Isabella Bertani,
BERTANI

Enhancing businessresilience throughESG integration
Isabella Bertani, FCPA, FCA
Founder and Chief Client Strategist,
BERTANII

n recent years, concepts ofEnvironmental, Social, andGovernmental issues (ESG)and how companies are managing
them has gained prominence
globally. Canadian organizations
are increasingly recognizing theimportance of integrating sustainability
considerations into their operations
and that shareholders are interested
in the sustainable initiatives they
undertake in order to enable them tobetter understand how companies
are managing the risks, opportunities,
and uncertainties around these issues.
Along with this, regulators have begun toalso recognize the impact ESG has on
decision making and as a result, havebegun to impose reporting requirements
and regulations around these issues,particularly in certain industries.
With today’s rapidly changing
business landscape, organizations arefacing multiple challenges that extend
beyond traditional financial metrics.
The integration of ESG considerations
is emerging as a critical aspect ofcorporate strategy.

ESG Reporting in Canada
Although ESG reporting is notuniversally mandatory in Canada,
several developments are shaping thereporting landscape with key regulators
the Office of The Superinendent of
Financial Reporting (OFSI), the Canadian
8 | irglobal

regulator of financial institutions, andthe Canadian Securities Administrators(CSA), regulator of publicly listed entities
moving towards this framework:• Federally Regulated
Financial Institutions:
Commencing with their 2024 fiscal year,
federally regulated financial institutions,
including banks and insurancecompanies, will be required to reporton ESG performance, in particular
OFSI Guideline B-15 on Climate Risk
Management which was put forward
in March 2023 with a public reporting
deadline of September 2024 for
Canada’s largest banks and insurers

and September 2025 for all otherfederally regulated financial institutions.
This move reflects the growing
importance of sustainability metrics
in financial decision-making.

• Canadian Listed Companies:

While ESG reporting is not mandatory
for all Canadian companies, increasingly,
companies are voluntarily adopting
disclosure. However, certain ESG-related
provisions apply to Canadian listedcompanies. For example, in May 2024,
first annual reports are due under theFighting Against Forced Labour andChild Labour in Supply Chains Act,

Isabella Bertani is the Founder and Chief Client Strategist at BERTANI, a boutique audit, tax,
and advisory firm located in Toronto, Canada. With over 25 years of experience, Isabella has
worked extensively with both private and public companies in numerous industry sectors including
manufacturing, food processing, technology, telecommunications, mining and mining-relatedindustries, biotech, and retail and distribution. She has been named by Practice Ignition as oneof the Top 50 Women in Accounting globally for two consecutive years in 2021 and 2022.
Isabella’s practice focuses on inbound foreign investment and Canadian domestic companies
with global interests. A recognised leader in foreign direct investment, Isabella routinely advises
global corporations with regards to expansion into the North American market and clients include
numerous foreign subsidiaries of significant global entities. Isabella is a frequent speaker on topics
relating to globalisation including doing business in Canada, trade agreements, global trade andmigration, and the impact of geopolitical trends on global foreign direct investment and global trade.
She has a particular interest in FDI and its impact on global sustainability.
+1 4163 638 404
isabella.bertani@bertaniglobal.com
irglobal.com/advisor/isabella-bertani

irglobal | 9• EMBRACING ESG

CANADA

About us...

MY ADVICE...
ESG integration is not just about compliance,
it is about creating long-term value fororganisations, society, and the environment.
Some key takeaways for your organisation are:
Assessment: Identify material ESG issues
most relevant to your business and prioritise
actions based on their impact and significance.

Risk: Understand and manage yourorganization’s ESG risks and resulting
implications of these risks. Once you have aclear understanding, you will then be able todevelop strategies to mitigate these risks andseize any opportunities.
Governance: Boards and audit
committees should be actively engaged in
ESG discussions and understand the impact on• Complexity and Gaps:

The sustainability reporting landscapeis becoming more demanding
and complex. Rising stakeholder
expectations surrounding ESG
performance and transparency have
led to prescriptive regulations replacing
voluntary guidelines. Despite thisprogress, Canadian companies arechallenged with meeting new regulatory
requirements, including evolving climatechange risk disclosure expectations.
Reflecting Canada’s changing
landscape in the area of ESG,The Canadian Sustainability
Standards Board wasestablished in 2022 towork towards advancing
the adoption of sustainability

10 | irglobal

Culture: By actively involving employees
in your organization’s ESG strategy
and initiatives, a culture of sustainability andresponsibility can develop.
Resilience: Look at ways to innovate andenhance the organisation’s resilience tothe ever-changing landscape.

Measurement: Establish clear ESG
metrics and regularly report on
performance using these metrics.

which received Royal Assent in May
2023 for organizations that either are
listed on a Canadian stock exchangeor do business or have a place ofbusiness in Canada and meet certain
threshold requirements. Among othersis the requirement by Corporations
Canada to report annually on thediversity of their board of directors andsenior management. The CSA is also
developing reporting around climatechange also expected to be alignedwith IFRS reporting standards.

the organisation and when mandatory reporting
comes into effect.

Lead: As ESG regulations increase, bystaying ahead of the curve and integrating
sustainable practices, it will contribute to yourorganisation’s long-term success and resilience.
These recommendations are not allencompassing, and should be tailored toan organisation’s specific contexts andindustries, but they provide a starting point fororganisations seeking to navigate the evolving
ESG landscape in Canada.

disclosure in Canada and develop
Canadian Sustainability DisclosureStandards that are aligned with global
baseline standards developed by theInternational Sustainability Standards
Board.

Client and Consumer
Demand as Catalysts
Client and consumer demand play apivotal role in driving ESG expectations
and regulations with an underlying
theme of transparency. These include:• Consumer Awarenessand Expectations:
Consumers are increasingly attuned
to the sustainability impact of theirpurchases. They expect companies
to demonstrate commitment to theplanet and its people. Priorities include
reducing plastic waste and microplastics,
improving labour standards, andlowering carbon emissions. Investors are
increasingly integrating ESG factors into
their investment decisions and recognizethat sustainable practices contribute andimpact a company’s long-term value andrisk management. Creating transparency
through product labeling and social
media and marketing is crucial for
meeting diverse consumer expectations
which are ever evolving as they become
more educated in what is happeningaround the world.

• Collaboration and

Supply Chain Transparency:
Achieving meaningful sustainability
improvements requires collaborationand information sharing throughout the
supply chain. ESG reporting and otherchannels necessitate transparency onmaterial ESG issues, climate risks, andemissions. How can we successfully
monitor and regulate the human impact
on the environment? Who will monitor
such an impact and how are we going
to finance such an undertaking?
Consumers are demanding responsible
supply chains. Consequently, an
important challenge in the coming year
is to focus on the monitoring, regulationand financing of climate change impacts
and other risks related to labour andenvironmental practices. This in turnimpacts a company’s already existing
concern for industries and organizationsof reliable supply chains. Climate change
and labour practices have a significant
impact on supply chain systems. Creating
sustainable supply chain mechanisms is
also necessary for reducing the carbon
footprint of an industry or organization.
With an expectation by consumers for

BERTANI is a boutique audit, tax and advisory firm located in Toronto,
Canada. Founded in 2001, BERTANI specialises in inbound and outboundforeign direct investment into Canada and private Canadian companies
with growth objectives and global interests.
Through our soft-landing program, we routinely advise and assist
foreign corporations with their expansion into and continuing operationsin the North American market. As a member firm of IR Global, BERTANI
is connected to over 1300 collaborative member firms in over 165
jurisdictions covering 70 practice areas across the globe, allowing ourclients to be ideally positioned for their outward global expansion strategy.
linkedin.com/company/bertanitransparency around these issues, thechallenge and priority when it comes tosustainability for organizations will be to
set climate goals and standards that arecongruent with their goals for efficiencies
as they face other barriers.

• Benchmarking and

Reputational Risks:Companies are increasingly
recognizing the importance of telling
their sustainability story to consumers.
However, there are implications if ESG
claims are publicly challenged and risks
to investors of company’s “greenwashing”
i.e. representing themselves as being
more environmentally responsible thanthey are resulting in investor confusion
and negatively impacting investor
confidence. As a result, accurate
reporting becomes more and more
important and is essential to maintaining
market share and preserving value. Thisin turn has also led to the increased needfor new regulation.
Consumer and investor demand
continues to be a significant catalyst
for ESG expectations and regulations.
In today’s “cancel-culture,” companies

are taking consumer expectations anddemands more and more seriously.

Accountants’ Role in
Boosting Resilience
Critical in today’s ESG environment is theneed for accountants to move beyond
traditional accounting roles and becomevalue-added leaders and influencers on
ESG matters. Our role has become more
complex, and clients are looking to us to
be strategic advisors and to understanda company’s broader business agenda
and strategy. Critical to doing so in ESG
is the need to understand and build
ESG knowledge to view a client throughan ESG lens and identify material
sustainability risks and opportunities
and how these impact an organization’s
long- term performance and value.
With the increasing demand by
stakeholders for transparency, CPA’s canhelp navigate the complexity of ESG
requirements and assist companies
in creating and incorporating an ESG
strategy into their long-term businessstrategy.
By actively engaging with ESG
issues, CPA’s can empower their clients’organizations to thrive sustainably
and navigate the challenges ofan increasingly evolving businessenvironment.

REFERENCES AND SOURCES:
Dawn of a new age in ESG disclosure,
Michael McKiernan, Canadian Lawyer,
September 14, 2023 • Canadianlegislation on Forced and Child Labour
in Global Supply Chains Takes Effect,
Stikeman Elliott, May 26, 2023 •Sustainability Reporting Updates,
CPA Canada •CPA Ontario, At A
Glance: Global Sustainability ReportingStandards and Regulations, February2024• An Investor’s Guide to ESG
reporting in Canada, MoneySense,
Kat Tancock, April 20, 2023 • How
Accountants can lead ESG Initiatives,
CPA Canada • Why Organizations needto embed ESG Risks and Opportunities
into their Business Strategies, The Globe
and Mail, April 5, 2023
irglobal | 11• EMBRACING ESG

BELGIUM

ESG’s impact and
M&A resilience
Steven De Schrijver
Partner
Agio LEGAL

E

nvironmental, social andgovernance (“ESG”) issues
detected during due diligence
were once considered risks which
could lead to specific indemnities,
remediation measures or even apurchase price decrease. Now, they
are recognised as one of the mostsubstantial opportunities for value
creation and transformative industry
shifts in our era. With sustainability and
ESG considerations becoming more
influential, Belgian companies arefacing greater pressure to align theiroperations with these principles. This
marks a clear shift towards integrating
sustainability values into the core ofbusiness strategies and decisionmaking processes. Attaining ESG goals
can be achieved through M&A activities
to further increase customer penetration
and accelerate sustainable growthacross the value chain.
However, companies also
falsely portray ESG commitments.
“Greenwashing” includes publishingmisleading information about practices
or false claims about products.
Companies could also associatethemselves with environmental issues
without taking substantive action,or while continuing environmentally
harmful practices.
The EU Directive 2022/2464 on
Corporate Sustainability Reporting
12 | irglobal(the “CSRD”) that came into force on
January 5, 2023 represents a significant
step in modernising and fortifying
environmental reporting regulations.
The CSRD aims to promote genuine
environmental accountability. The
CSRD enhances access to information
critical for assessing financial risks
and opportunities of sustainability
issues, particularly climate change.
These rules, effective from the 2024
financial year onwards, underscore theEU’s commitment to sustainability, andalign with international standardisation
initiatives. Before this directive takes
effect in Belgium, it needs to betransposed into Belgian law (by 6 July2024 at the latest).
According to the 2022 M&A
monitor report conducted by VlerickBusiness School, only 35% of strategicacquisitions consider ESG. Private
equity fares slightly better at 49%, but
only 38% of surveyed Belgian private
equity investors have a formal ESG
investment policy. The implementationof the CSRD may shift companies’
attitudes towards ESG in M&A, with one
participant noting that private equity

firms are still assessing how to integrate
ESG into investments. Although thefollowing edition of the 2023 M&A
monitor report of Vlerick Business
School did not provide any numbers on
this evolving trend, it does indicate asurge in M&A deals targeting firms withrobust ESG credentials. Companies thatcan credibly demonstrate those tend
to attract substantial market interestand secure higher valuations fromacquirers aiming to enhance their own
ESG credentials. As a result, provisions
relating to ESG commitments feature
more prominently in the companies’
governance documentation, including
shareholders’ agreements.
Following an introductory analysisof the opportunities and challenges
associated with achieving ESG goals,
we explore how the CSRD can help
strengthen companies’ resilience inthe context of M&A.

“Private equity
firms are still
assessing how
to integrate ESG
into investments.”
Steven De Schrijver,
Agio LEGAL

Opportunities and Challenges
ESG generates value across various
dimensions, assisting companies incost reduction, enhancing sales, raising
prices, attracting and retaining top

Steven De Schrijver is a partner at Agio Legal and specialises in M&A,
corporate law, TMT law, data protection and privacy law and outsourcing.
Steven has more than 30 years of experience in advising Belgian andforeign companies on corporate transactions and has been involved innumerous national and cross-border transactions in the IT, media, telecomsand life sciences sectors.
+32 4766 091 82
sds@agio.legal
irglobal.com/advisor/steven-de-schrijver

irglobal | 13

• EMBRACING ESG

BELGIUM

About us...

“ESG challenges include company cultures impeding ESG
advancements, the underdeveloped nature of ESG in termsof regulations, standards and data availability, as well as
the quest for suitable ecosystem partners.”
talent, and augmenting overall company
value. Notably, ESG is perceived as
an avenue for expanding into new
business realms. This expansion might
involve reimagining the core businessby offering alternative products to theexisting customer base, introducing
new products in related markets, or
establishing entirely new ventures
aimed at different customer segments
while leveraging existing internal
knowledge.
Realising ESG ambitions does
not inherently create value andis confronted by notable hurdles.
Challenges include company cultures
impeding ESG advancements, theunderdeveloped nature of ESG interms of regulations, standards anddata availability, as well as the quest forsuitable ecosystem partners. Moreover,navigating trade-offs between short-term
profitability and long-term objectives
is also a hurdle. These challenges arecompounded by immediate pressures
such as ongoing geopolitical conflicts,
high inflation, and constraints withinglobal supply chains.

The EU Directive 2022/2464
on Corporate Sustainability
Reporting (the “CSRD”)
The primary obligation outlined by
the CSRD for companies within its
scope is the disclosure of sustainability
information in conformance with theEuropean Sustainability ReportingStandards (ESRS), which were adopted
by the Delegated Regulation (EU)2023/2772 on July 31, 2023. The ESRS
comprises theme-specific standards(Environmental, Social, Governance)
tailored to address the most important
aspects of these themes (e.g. climate
for ‘Environment’, human rights
protection for ‘Social’, anti-corruption
compliance for ‘Governance’). The
ESRS also aims to develop sector14 | irglobal

specific standards tailored to address
unique topics within specific sectors.
Simultaneously, it includes cross-cutting
standards applicable, irrespectiveof the sector. These cross-cutting
standards require a substantial
range of information categories to bedisclosed, including details such as
the description of the business modeland strategy, sustainability risks, andtransition plans. This encompasses
information on sustainability policies,
incentive schemes on sustainability
issues, as well as measures devised
to prevent and mitigate adverse
impact on sustainability. Noteworthy
is the principle of “double materiality,”
necessitating reporting on the impact
of sustainability on the company andvice versa. Cross-cutting standards also
introduce reporting within the value
chain, with a 3-year grace period.
Furthermore, the CSRD introduces
two key reporting rules applicable to allcompanies within its scope. The firstemphasises transparent reporting,requiring information to be clear,
relevant, verifiable, and comparable.
The second, the “materiality
requirement,” mandates thedisclosure of only relevant
information. This principle isespecially pertinent for topicalstandards, necessitating acomprehensive explanation if,
after conducting a materiality
assessment, a company considersa specific topical standard as
not material to its operations,particularly when the company is
not engaged in that specific field.
The CSRD leaves sanctions for
non-compliance to member states.
Expected sanctions include financial
penalties, warnings or correction
orders, and criminal sanctions. Many
member states are likely to retain
similar sanctions from the Directive (EU)2014/95 on Non-Financial Reporting.

Strengthening Resilience:
Navigating ESG Expectations in
M&A Transactions
Besides publicly listed companies, theCSRD applies to EU-based companies
that satisfy at least two of the following
criteria: 250 employees, a total balance
sheet of EUR20m, or a net turnover of
EUR40m. It includes certain qualified
Small and Medium Enterprises, andexempts certain micro-enterprises.
For non-EU companies, it covers EU
subsidiaries or branches with a groupturnover exceeding 150 million Euroin the last two years, and either an
EU branch with over 40 million
Euro turnover or a subsidiarymeeting the EU-based criteria.
In my opinion, companies
falling outside the scope of the
CSRD could voluntarily adhere
to European Sustainability
Reporting Standards (the“ESRS”). This would make themmore attractive to partnerships
and M&A transactions with theselarge companies and certain qualified
SMEs. Furthermore, they may

Agio LEGAL is a major Belgian independent
law firm, boasting a strong team of lawyers withspecialisations in areas including corporate,commercial, labour, IT/privacy, insolvency,
administrative, sports, real estate, environmental,
corporate criminal, and tax law, in advice andlitigation. Agio LEGAL is much more than just a teamof specialised lawyers. Entrepreneurs benefit morefrom a legal partner who is interested in their growthand success. Together we look at your goals andalong the way, we get to know your business.
agio.legal

be required to do so if their customers
fall under the scope of the CSRD andprefer their respective supply chains toaccommodate them in their respective
CSRD compliance programs.
According the Belgian 2023
M&A Monitor conducted by the
Vlerick Business School, there is a
growing emphasis in Belgium on
ESG during the due diligence of an
M&A transaction and selection ofpartnerships. This includes the review
of material agreements, examinationof target companies’ ESG policies
and initiatives, a target’s activities
and supply chain, and scrutiny ofcompliance frameworks. Beyond mere
legality, there is a growing interest inunderstanding whether the target’s
current business practices alignfavourably with the expectations of key
stakeholders, most notably investors
and customers. This scrutiny extends
particularly to the intricacies of the
supply chain, where the perceptionof ethical and sustainable practices
can significantly impact the overall
desirability of a potential transaction.
This is exacerbated by the cross-cutting

standards imposed by the CSRD which
require sustainability reporting aboutcompanies with which they have direct
and indirect business relations in the
upstream or downstream value chain.
The transformative industry shift
posed by ESG necessitates close
collaboration not only among different
legal disciplines (i.e. environmental,social, corporate, regulator etc.) but alsowith non-legal experts such as financial

or technical advisers. Furthermore,
there is an anticipation that ESG
considerations will gain increased
prominence in the negotiation oftransactional documents, such as saleand purchase agreements. This will
be particularly notable concerning
representations, warranties andcovenants related to relevant standards,
akin to how anti-money laundering
processes are addressed.
irglobal | 15

• EMBRACING ESG

US – OKLAHOMA

Cost? Benefit?
The truth about ESG
Kaitlin Flinn Partner
Haley Legg Assurance Division
CCK Strategies, PLLC

Q1
Is ESG reporting mandatory or
encouraged in your jurisdiction?

Kaitlin Flinn, Partner at CCK Strategies, holds a
Bachelor's degree in Accounting from Oral Roberts
University and a Master's in Taxation from the
University of Tulsa. Kaitlin is dedicated to empowering
entrepreneurs by providing the critical insights
necessary for their success, guiding them with tailormade strategies for growth. Kaitlin offers her extensive
knowledge in entity formation and structure, strategic
tax planning, transfer pricing, R&D incentives, andmulti-state compliance.
Kaitlin's drive to strengthen worldwide connections
has led her to serve as the executive board chairof the Tulsa Global Alliance, where she is an
advocate for cultural exchange and international
business cooperation. Recognised for her significant
contributions to the field of accounting, Kaitlin has beenhonoured with the Trailblazer Award from the OSCPA,
highlighting her impact and leadership in the industry.
+1 (918) 491-4036
Kaitlin@cckcpa.com
irglobal.com/advisor/kaitlin-flinn

16 | irglobal

Environmental, Social, and Governance(ESG) reporting is an evolving
landscape in the United States. In
Oklahoma and Texas, ESG reporting
is not mandatory but is encouraged
to maintain transparency and foster
stakeholder trust. However, companies
based in Oklahoma and other regions
should be aware that if they conductbusiness in other states, California forexample, they may be subject to thatstate's specific ESG regulations.
Effective in 2024, the Securities
and Exchange Commission (SEC)
has mandated that publicly traded
companies disclose certain ESG factors
in a Company’s annual report. As
ESG becomes part of the disclosure
requirements, the scope of financial
statement audits has expanded toincorporate these elements as well.
This highlights the critical impact of
ESG on the financial results of anorganisation – the cost of compliance,
but also the impact of perception on
the shareholder value.
Industries such as Oil & Gas,
manufacturing, chemical blending, andothers with a high environmental impact
face increased pressure to diversify into
renewable energy sources. The UnitedStates Congress has recognised theneed for renewable energy and createdrenewable energy tax credits andincentives that companies can apply

to their federal tax returns. Some ofthese credits can be generated orbought and sold like a commodity.
The social implications of ESG are
far-reaching. Pressure from consumers
to be good stewards plays a significant
role in how a company positions theirproducts. This has led to greater
involvement in communities andimproved transparency and equality
in hiring and promoting employees.
As each of the other two aspectsof ESG have evolved, the expectationof a company’s governance to upholdthese values has also increased.
More governing bodies are being
held responsible for the actions of theircompany, requiring them to engage moredeeply in the operations and broaden
their understanding and education.
Although ESG reporting is mandatory
only under certain conditions, theevolving nature of this practice isencouraging voluntary disclosure.

Q2
How is client and consumer
demand driving ESG expectations?
Consumer and client demands arepivotal in driving ESG expectations.
While these demands have not yet
translated into explicit regulations, they
have influenced business strategies
significantly. In Oklahoma municipal
governments are transitioning their fleets
to more sustainable options, and tribal

communities are taking considerable
strides toward sustainability and costsavings. The workforce, attracted tocompanies with ESG commitments,
plays a vital role in meeting consumer
demands and driving innovation. In
response, accounting services have
expanded to include audit, tax, and
CFO consulting that are attuned to theoverarching issues of ESG.
Responding to workforce demands,
an increasing number of companies
are adopting eco-friendly practices
within their offices. This shift includes
substituting Styrofoam cups withreusable water bottles, placing recycling
bins in shared areas, and forming
committees dedicated to crafting thecompany's environmental initiatives.
The emerging workforce also places
high importance on an organisation's
philanthropy and engagement with thecommunity, prompting a heightened
focus on integrating these aspects into
a company's cultural fabric.
Sustaining these initiatives
necessitates planning and investment.
Public accounting firms, along withinternal finance and audit departments,
are offering consultancy services
to assist in the adoption of thesestrategies. Their goal is to optimise thecompany's return on investment while
maintaining a transparent approach tofinancial data for its users.

About us...

Q3
What should accountants be doing
now to boost resilience, in relation
to sustainability, in their clients’organisations?
Accountants play a key role in enhancing
the resilience of their clients' organisations
in relation to sustainability. They should
be advocating for R&D tax credits that
support sustainable quality improvements
and informing clients about the benefitsof Section 179D for energy-efficientcommercial buildings. They should also
advise on renewable credits, which canoffer significant financial advantages.
CCK Strategies works with thenon-profit, The Sustainability Alliance,
to introduce ESG scorecards to help
businesses measure and communicate
their performance in sustainability.
These scorecards are a method for
tracking and reporting on ESG efforts
that can be measured.
At first glance, ESG practices
can appear costly and provide nolong-term benefit. But, when combinedwith proper marketing and recruiting
data, accountants can help analyse
the opportunities of implementing thestrategies. ESG can attract and retain
new customers and members of theworkforce.

Haley Legg, CPA, CIA, CFE, a Sand Springs, Oklahoma
native, holds a Bachelor of Science in Accounting anda Bachelor of Business Administration in Finance fromthe University of Central Oklahoma. As a Certified Public
Accountant, Certified Internal Auditor, and Certified
Fraud Examiner, Haley specialises in Audit & Assurance
Services, focusing on Healthcare, Construction,
Manufacturing, Software, and Non-profit sectors.
Her expertise extends to Business Advisory Services,
Corporate Governance & Compliance, Data Privacy& Security, Forensic Accounting, and White-Collar
Crime. Actively engaged in her community, Haley
serves as Treasurer for Global Oklahoma and supports
organisations like the Community Foodbank of Eastern
Oklahoma. Residing in Sapulpa with her family, Haley
enjoys exploring Crypto and Digital Asset Management,
attending professional discussions, and pursuing herinterests in soccer, reading, crocheting, and lake outings.
+1 (918) 491-4036
haley@cckcpa.com
irglobal.com/advisor/haley-legg-cpa

cckcpa.com

CCK Strategies is a unique firm that connects
globally by working with companies headquarteredon four continents with operations in over 25
countries. CCK export revenue from international
clients has increased approximately 350% over theperiod 2013 to 2023. This increase in internationalsales has been a principal driver in CCK employmentrise over the period to over 125 total staff, making
CCK one of the largest CPA firms in Oklahoma. The
continued growth brings expertise to clients with avariety of business needs in international businessconsulting and planning, IC-DISC implementation,
foreign tax credits, outbound and inbound structure
planning, worldwide tax minimisation planning, IRC
965 Transition Tax compliance, Global Intangible
Low-Taxed Income compliance, transfer pricing
analysis, ASC 740 (FAS 109/FIN 48) and IFRS/GAAP convergence.

CCK Strategies is a non-traditional public
accounting and business consulting firm, founded
in 1997 by three young partners motivated to build
a new type of CPA firm. The CCK Strategies logo
reflects the desires of the Partners to focus oninternational cultures, relationships and business
opportunities while making a difference in our
local, state and national and global economies.
CCK looks for unique lines of business whileworking to maintain the highest quality incorporate values and client service.
CCK specialises in working withentrepreneurs. With over 125 employees andoffices in Tulsa, Oklahoma and Frisco, Texas,
CCK’s growth mindset creates opportunities
to work with a diverse group of clients. CCK’s
success can be attributed to a few fundamental
principles of service, value and care.

Learn more about CCK Strategiesat www.cckcpa.com

irglobal | 17

• EMBRACING ESG

HUNGARY

Commerce,
law, and ESG
Dr. Jesszika UdvariPartner
Budlegal Attorneys

Dr. Jesszika Udvari MBA, is a dynamic legal
professional based in Budapest, Hungary. Since 2023,
she has been a Partner and Attorney-at-law at her
boutique law firm, the Budlegal Attorneys, overseeing ateam of 12 dedicated individuals. Udvari specialises inLabour and Compliance Law, with expertise in Labour
law advising, GDPR, Whistleblowing, and ESG matters.
Fluent in German, English, and Hungarian, she brings
a global perspective to her practice. Her academic
journey includes studies in Germany, culminating in aprestigious MBA from ESMT in Berlin in 2022. Udvari
is committed to delivering strategic legal solutions,ensuring her clients navigate the complexities of labourand compliance law with precision and foresight.
+36 3086 812 97
jesszika.udvari@bud-legal.hu
irglobal.com/advisor/dr-jesszika-udvari

18 | irglobal

In Hungary, as a member of theEuropean Union, we adhere to therules imposed by the EU on its member
states. The regulatory landscape has
evolved, compelling an increasing
number of companies to integratesustainability-related disclosures into
their yearly financial reports, known as
non-financial or sustainability reports.
According to “The European Green
Deal” the EU aims to transform theUnion into a modern, resource-efficientand competitive economy with net
zero emission of greenhouse gases
by 2050, to protect, conserve andenhance the Union’s natural capital,
and to protect the health and well-beingof Union citizens from environmental
risks and impacts. The Green Deal aims
to decouple economic growth fromresource use, and to ensure that all
regions and Union citizens participate ina socially just transition to a sustainableeconomic system, whereby no person
and no place is left behind.
To reach these goals the European
Parliament and the Council haveadopted a number of legislative acts
as part of the implementation of the
Action Plan on Financing Sustainable
Growth. To realise these goals, theEuropean Parliament and the Council
have enacted legislative acts, including
the Accounting Directive (2013/34/EU),
the Non-Financial Reporting Directive(2014/95/EU), and the recently
amended Corporate Sustainability
Reporting Directive (2022/2464(EU),

CSRD). These directives establish
frameworks for non-financial reportingand disclosure standards. Under the
CSRD, approximately 50,000 European
companies and around 10,000 non-EU
companies will now be impacted,
significantly widening the scopecompared to the previous NFRD.
These requirements are partly
directly binding and partly transposed
into national law. Hungary has alreadytransposed the CSRD into national
law through the effective ESG Act,
operational since January 1st, 2024.
The Act places substantial obligations
on businesses, including the annual
preparation of an ESG sustainability
report, establishing risk management
systems, implementing complainthandling procedures (whistleblowing
system), developing internal
responsibility strategies, conducting
regular risk analyses, and fulfilling
ESG data provision obligations.
For EU companies, the CSRD
officially came into effect on January
1, 2024. The initial reporting obligation
applies to companies already subject
to the NFRD, necessitating compliancewith the amended regulations andreporting for the fiscal year 2024 by
2025. Other large companies notinitially subject to the NFRD mustcommence reporting for the fiscal year
2025, starting from January 1, 2026.
Small and medium-sized enterprises(SMEs) will begin reporting on January
1, 2027, for the fiscal year 2026.

MY ADVICE...
Sustainability is not a standalone initiative
but an integral part of the core businessstrategy. Aligning sustainability goals with overallbusiness objectives enhances an organisation's
ability to navigate challenges and capitalise onopportunities.
Leading by example is crucial. Rather thanresorting to ‘greenwashing,’ introduce
specific actions within your own firm to set a
standard. Numerous examples of larger law

For non-EU companies, including
private entities, ESG reporting is
mandated if they have a net turnover(revenue) generated in the EU exceeding€150 million for two consecutive financial
years. Furthermore, these companies
must have either a large EU or EU-listed
subsidiary or a branch generating morethan €40 million in net turnover. The
sustainability report produced by non-EU
companies covers various ESG topics
such as climate change, biodiversity,
worker conditions, and human rights.

Q1
How does the client and consumer
demand drive ESG expectations?
The heightened awareness andconcern among clients and consumers
regarding the environmental and social
impact of businesses have catalyseda surge in demand for companies toadopt sustainable and responsible
practices. Clients now actively seek
products and services from companies
demonstrating a commitment to ethicalbusiness practices, environmental

About us...

firms with exemplary ESG sustainability reports
can guide the initial steps toward conscioustransformation to sustainable entrepreneurship.
ESG is a continually growing knowledgearea, with many specifics that may not belegally relevant or within the purview of lawyers.
However, compliance with requirements and a
deep understanding of regulations are vital toeffectively assist clients with legal questions inthis dynamic and evolving landscape.

stewardship, and social responsibility.
To navigate this evolving landscape, it
is recommended to engage stakeholders
comprehensively, including employees,
customers, suppliers, and the local
community. Understanding their
expectations, concerns, and preferences
related to sustainability is crucial.
Regulators are responding
to this demand by introducing or
strengthening ESG regulations,increasingly incorporating ESG criteria
into legal frameworks. This regulatoryenvironment reinforces the influenceof client and consumer demand on
businesses, creating a cyclical dynamic
where companies are compelled tomeet both market expectations andlegal requirements.

Q2
What should lawyers be doing
now to boost resilience, in relation
to sustainability, in their clients’organisations?
In enhancing resilience related tosustainability in clients’ organisations,

legal professionals play a pivotal role.
Depending on the client's business,offering comprehensive sustainability
audits and developing tailored strategies
to enhance resilience are key offerings.
Advisors should guide clients on
incorporating ESG factors into theirdecision-making processes, contracts,
and risk assessments.
Given the rapid evolution ofsustainability regulations, staying
informed about emerging legislation
and regulations is imperative.
Proactively guiding clients to adapt
to new requirements helps themavoid legal and reputational risks.
Professional advisors canfurther assist clients in implementing
sustainable governance structures. The
lack of knowledge and information in
many large companies necessitatesassistance in building organisational
structures, creating documentation, andestablishing contracts with ESG auditing.
We often find that large companies
lack knowledge and understanding.
They do not know, for example,
where should ESG Officer should sit
in the company. Is it marketing? HR?
Compliance? Educating employees
and leadership teams is paramountin embedding sustainability into
organisational culture. Advisors canprovide training programs, including
workshops on ESG best practices,
legal obligations, and the businesscase for sustainability.
Considering the obligation toestablish whistleblower systems,
legal advisors can assist in preparing
necessary documentation andinformation. Acting as whistleblower
protection lawyers, they ensurecompliance with the ESG Act’s
requirements.

bud-legal.hu/en

Budlegal Attorneys, based in Budapest, is aleading law firm specialising in a wide rangeof legal services. Our expertise includes
business law, corporate and M&A, civil law, realestate law, litigation, labour law, compliancelaw, GDPR, whistleblowing, ESG advising,and other comprehensive legal services forclients both domestic and international. With

over two decades of professional experience
in international business, our dedicated teamprioritises professionalism, secure legaltransactions, and the delivery of high-quality,
swift, and transparent legal advice. Budlegal iscommitted to providing exceptional legal support
to meet the diverse needs of our clients.

irglobal | 19

US – TEXAS

About us...
EXPERT VIEW: FORCED LABOUR

Uyghur Forced Labor
Prevention Act: the latest
I

Lawmakers’ concerns
and CBP enforcement
The bipartisan coalition of House
Ways and Means Trade Subcommittee
members is gravely concerned about
the enforcement of the Uyghur Forced
Labor Prevention Act (UFLPA). They
stress the importance of CBP ensuring
the consistent and robust enforcementof this critical piece of legislation. In
particular, they emphasise the need
for CBP to provide regular updates
to the UFLPA Entity List, which is vitalfor identifying and excluding products
20 | irglobal

Braumiller Law Group, PLLC, is a highly respectedboutique law firm focused on international tradecompliance and proven strategies to optimise global tradebusiness practices. The attorneys and trade advisors ofBraumiller Law Group know exactly how to navigate theintricate maze of global trade regulations and have a
successful track record for helping clients save millionsof dollars in compliance penalties. For clients around theworld, a partnership with Braumiller Law Group extends
beyond compliance support to generate measurable
business value.

UFLPA implementation have manifested
in situations where the enforcement has
been overly broad or not consistent.
By refining the targeting process andaddressing these imperfections, CBP canenhance the effectiveness of the UFLPA.

Adrienne Braumiller
Partner
Braumiller Law Group, PLLC
n recent years, the global
spotlight has illuminated the grave
concerns surrounding human rights
violations within China’s Xinjiang region,
particularly those impacting the Uyghur
population. The Uyghur Forced Labor
Prevention Act (UFLPA) stands as apivotal piece of legislation designed toaddress these concerns and to ensurethat products imported into the UnitedStates are devoid of forced labour
originating from the Xinjiang region.
This statute has precipitated substantial
developments within the domain of U.S.
Customs and Border Protection (CBP),
with far-reaching consequences forimporters and businesses operating
within the international supply chain.
This legal article delves into the pivotal
advancements associated with the
UFLPA and their ramifications on
international trade.

braumillerlaw.com

Challenges in supply
chain transparency

tainted by forced labour from entering
U.S. supply chains. The lawmakers callfor a comprehensive strategy to prevent
any goods produced with forced labour
from infiltrating the U.S. market.

note that the government’s perceptionof forced labour risk plays a significant
role in this evaluation, often taking
precedence over a company’s
independent assessment.

Ensuring transparency
down the supply chain

Precise targeting andflaws in implementation

CBP’s enforcement of the UFLPA has
faced scrutiny, particularly when it
comes to ensuring transparency down
the supply chain. To address this,experts recommend that buyers should
engage in a thorough assessment of
their suppliers, reaching every single
tier within the supply chain. This isessential because various products
involve raw materials that extend
beyond Tier 2. By understanding
the full extent of their supply chains,companies can better identify potential
sources of forced labour and mitigate
the associated risks. It is important toNate Herman, Senior Vice President
for Policy at the American Apparel andFootwear Association, points out somesignificant issues with CBP’s targeting
efforts and the overall implementationof the UFLPA. He emphasises the needfor more precise targeting of products
and entities that pose a genuine risk offorced labour involvement. The flaws in

Adrienne Braumiller is the founder of Braumiller Law
Group PLLC and an innovative force in international tradelaw. With more than 30 years’ experience, Adrienne has
been involved in every aspect of import and export
compliance, and she is widely recognised as a leading
authority in customs, import, export, foreign trade zones,
free trade agreements, and ITAR compliance.
+1 2143 489 306
adrienne@braumillerlaw.com
irglobal.com/advisor/adrienne-braumiller

Many corporations acknowledge
the inadequacy of their supply chaintransparency. While the idea of mapping
the entirety of complex global supply
chains can be daunting it is essential
not to be discouraged by the scale ofthe task. The key is to start with a risk
assessment to identify commodities
with the highest risk profile. By
beginning with a specific product orcommodity category that encompasses
such a high-risk item, companies cantake practical steps towards improved
supply chain transparency.

Expanding horizons:
beyond China
While China has been a major sourceof UFLPA-related detentions, the scopeis expanding to products originatingfrom other countries. Notably, countries
like Malaysia, Vietnam, Cambodia, andBangladesh have come under scrutiny,
indicating that the issue of forced labour
isn’t limited to China. This expansion
underlines the need for businesses tomaintain vigilance regardless of theircountry of origin and demonstrates
that simply shifting manufacturing
operations from China to other nations
doesn’t eliminate the risk of forced
labour in the supply chain.

Recent additions to the entity list
The U.S. Department of Homeland
Security has taken significant steps toreinforce the UFLPA by adding three

Chinese companies to the UFLPA Entity
List. These additions create a rebuttablepresumption that goods produced or
distributed by these companies involve
forced labour and are barred fromentry into the United States. This adds
considerable weight to the enforcementof the UFLPA, particularly forcompanies engaged in the production
and distribution of materials with ties toforced labour.

Role of the National Associationof Foreign-Trade Zones (NAFTZ)
NAFTZ is actively advocating for theuse of foreign-trade zones (FTZs) tostore detained goods under the UFLPA.
However, this advocacy has not been
without its challenges. There are ongoing
discussions aimed at finding practicalsolutions for storing goods suspected ofbeing produced through forced labour.
The role of FTZs in mitigating thesechallenges is a topic of importancewithin the context of UFLPA enforcement.

Expanding focus: new entity
list additions and commodities
Recent additions to the UFLPA Entity List
have shifted the focus of enforcement.
These new additions include companies
that were not previously listed on
government-denied party lists, indicatinga broader focus on identifying andaddressing potential instances offorced labour. Furthermore, the rangeof commodities subject to scrutiny isexpanding, encompassing products
beyond the conventional focus areas ofcotton, polysilicon, and tomatoes. This
expansion reflects the evolving strategyof the Forced Labor Enforcement
Task Force (FLETF) and the growing
recognition of the need for vigilance inmonitoring sectors beyond the initialhigh-priority areas for enforcement.

New leadership at the Departmentof Homeland Security will ensure
increased enforcement
As of November 6th, 2023, Dr. Laura
T. Murphy’s recent secondment as apolicy advisor for the Under Secretary in
the Office of Policy in the Department ofHomeland Security marks a significant
development in the U.S.’s efforts toprevent forced labour, particularly in
relation to the Uyghur Forced Labor
Prevention Act. With her expertiseand focus on forced labour policy andenforcement, Dr. Murphy’s involvement
is expected to strengthen the U.S.’s
initiative in combating forced labour.
For those few folks who are unfamiliar
with Dr. Murphy, she is a Professorof Human Rights and Contemporary
Slavery for the Helena Kennedy Centre
for International Justice’s Forced Labour
Lab at Sheffield Hallam University. Thislab continues to concentrate its efforts
on combatting forced labour in the
Uyghur Region, and all ongoing projects
remain on track.
One of her key responsibilities will
be to engage with various stakeholders
who share an interest in preventing
goods made through forced labour
from entering the United States andcirculating globally. This collaborative
approach will play a crucial role incurbing the flow of such products andraising awareness about the issue.
Considering Dr. Murphy’s previous
commitment to uncovering forced labour
practices, her involvement in this initiative
is expected to amplify enforcement
efforts. Her dedicated contributions andactive participation indicate a heightened
focus on ensuring that forced labour
does not go unnoticed or unaddressed.

Conclusion
The Uyghur Forced Labor Prevention
Act represents the United States’commitment to addressing humanrights violations in Xinjiang. Recent
updates by CBP underscore both thelikelihood of increased enforcement
and the importance of due diligence,transparency, and compliance withinglobal supply chains. By staying
informed and proactively addressing
supply chain vulnerabilities, businesses
can navigate evolving trade regulations
and support international efforts toeradicate forced labour practices.
irglobal | 21

The stateof AI
Artificial Intelligence (AI), is revolutionisingindustries and daily life, shaping the way we work,communicate, and interact with technology, but its
legal implications must also be considered.
The next chapter explores AI’s complex relationshipwith intellectual property (IP), as well as whether
AI should have a place in disputes, with expert
advice on how various jurisdictions tackle bias andtransparency in generative AI tools, as well as moves
to legislate AI-related IP.
With regards to the use of AI in dispute resolutionin Massachusetts, Thomas Curran believes that thequestion isn’t whether AI should have a place indisputes, but rather, what can practitioners do toleverage AI efficiencies while avoiding its pitfalls?
Concerning IP, Kenji Kuroda discusses proposals
including opt-out mechanisms for copyrighted
materials in AI training in Japan, after creators
have expressed growing concerns about potential
copyright infringements. However, Japan’s
approach to AI and IP leans towards soft-law
mechanisms, favouring guidelines over formal
legislation. Conversely, in the EU, efforts areunderway to develop a new AI Act focusing on
safety, transparency, and non-discrimination. Claes
Ottosson highlights how Sweden in particular has
positioned itself as an AI adoption leader in public
administration, including the judiciary system.

22 | irglobal

FEATURING...
P24

US – MASSACHUSETTS
Thomas H. CurranThomas H. Curran Associates, LLC

P28

ENGLAND
Stuart Hendry
HecoAnalytics Ltd

P32

SWEDEN
Claes Ottoson
Independia Law Firm AB

P32

SWEDEN
Elaine Gylling
Independia Law Firm AB

P36

AUSTRALIAJames Conomos
James Conomos Lawyers

P38

JAPAN
Kenji Kuroda
Kuroda Law Offices

P40

US – OHIO
Chris Niekamp, Buckingham
Doolittle & Burroughs, LLC

P40

US – OHIO
Andrew Stebbins, Buckingham
Doolittle & Burroughs, LLC

P42

VIETNAM
Stephen Le,
Le & Tran Law Corporation

irglobal | 23• THE STATE OF AI

US – MASSACHUSETTS“There is no
indication thatgenerative AI isready to replace
the servicesof mediators,
arbitrators,
judges or otherneutrals.”Thomas H. Curran,Thomas H. Curran Associates, LLC

Does AI belong
in dispute
resolution?
Thomas H. CurranManaging Partner
Thomas H. Curran Associates, LLC
Instead of debating whether AI
should or shouldn’t have a place indisputes, practitioners may be better
served by embracing the inevitability
that AI isn’t going anywhere. The
question isn’t whether AI should have aplace in disputes, but rather, what can
we as practitioners do to leverage AI’s
efficiencies while avoiding its pitfalls? By
now, most litigators are likely well awareof the dangers of taking a backseat
to generative AI in drafting criticallegal documents — none of us wants
to end up in hot water with the ethics
committee (or worse, our malpracticeinsurers) for unwittingly relying on
mythical case citations fabricatedentirely by ChatGPT. However, if
properly implemented, AI can be a
powerful tool for maximising efficiency
and perhaps even streamlining law
practice and leading to more efficient
dispute resolution.

Q1
Is generative AI already being
used in dispute resolution inyour jurisdiction?
It’s likely safe to assume that otherpractitioners are utilising some formof generative AI in preparing and
24 | irglobal

arguing their cases, however there
is no indication that generative AI
is yet being used as part of theprocess for presiding over disputes in
Massachusetts. That is to say, there isno indication that generative AI is readyto replace the services of mediators,
arbitrators, judges or other neutrals in
determining the merits or dictating theoutcomes of disputes in Massachusetts— nor is AI likely to ever fully replace
the need for human neutrals. However,it’s not unrealistic to expect that, in the
future, generative AI could be leveraged
to more efficiently dispose of certain
kinds of disputes in Massachusetts.
Court-related online dispute
resolution (ODR) platforms havebeen piloted in other jurisdictions
to aid litigants in resolving disputes
exclusively online and without the needfor interaction with or appearance inthe courts. In the United Kingdom,
the Road Traffic Accident (RTA) Small
Claims Protocol prompts litigants to
use the court’s online claims portal
to attempt resolution of low-exposure
personal injury claims arising out ofroad traffic accidents (https://www.
officialinjuryclaim.org.uk). If claims
can’t be resolved on the portal, they
may move back and forth between the
portal and the courts as necessary until
the claim is disposed. Courts in British
Columbia have a similar court-annexed

ODR program available in small claims
matters as well. Closer to home for
Massachusetts practitioners, the New
Hampshire Judicial Branch may also
be considering whether developmentof an ODR platform may be viable there(https://www.mclane.com/insights/
ai-a-tool-to-augment-online-disputeresolution/).
Although the Massachusetts Judicial
Branch does not currently have acourt-annexed ODR program, there
has been discussion about developing
AI chatbots on government websites
to aid pro se litigants in navigating thestate court system. A feature like thisThomas H. Curran has developed his practice over the
past three decades, focusing primarily on bankruptcy
and insolvency proceedings. He often represents
secured and unsecured creditors, committees ofcreditors, trustees and equity security holders inbankruptcy and insolvency proceedings as well as
financial institutions and other lenders in out-of-court
loan restructurings, assignments for the benefit ofcreditors, foreclosures, repossessions, and the saleof distressed assets and businesses. He also has
experience representing business debtors in workout,
restructuring and bankruptcy matters.
+1 6172 078 670
tcurran@thcalaw.com
irglobal.com/advisor/thomas-h-curran

irglobal | 25

• THE STATE OF AI

US – MASSACHUSETTS

About us...
MY ADVICE...
Get used to generative AI and get used towhat it can do for law practice, as it isn’t going
anywhere any time soon. AI is only as good as its
training and programming, so always exercise carewhen relying on generative AI to compose legal
documents, and make sure any propositions of law
or legal citations it includes are valid and proper. If
ODR is available in your jurisdiction, take advantage
of it while still ensuring your client’s right to appeal tohuman beings is protected.

has promising implications for accessto justice and, if reliably programmed,
such an application may improve thequality of self-representation and better
equip pro se litigants who may not be
experienced in interacting with thecourt system. With the Massachusetts
government expressing goals of
positioning the Commonwealth tobe a “hub” for the development of AI
technology, it would be unsurprising
to see a surge of activity in the future
along these lines.

Q2
How do you feel about generative
AI in disputes? Could ChatGPT or
related applications pose a faster,fairer dispute resolution process,or does it pose a serious risk to theresolution process?
The usual generative AI caveats
undoubtedly apply in the context
of dispute resolution: because thistechnology is only as good as its
programming, it will always be imperative
to exercise care in its development anddeployment. Where courts in the United
Kingdom and Canada have had somesuccess in developing ODR processes,
there is a promising road ahead as thetechnology develops that may help
to streamline and simplify the dispute
resolution process while at the sametime reducing the load on overburdened
courts. Care should always be taken
to ensure that no parties are deprivedof access to the courts or resort tohuman intermediaries, and there willneed to be strong failsafe mechanisms
in place to ensure accuracy andfairness in dispute resolution processes
that rely on generative AI. However,practitioners should remain hopeful at
the prospect that, properly harnessedand programmed, generative AI could
become a powerful tool to aid not justin faster and more reliable dispute
resolution, but in many other aspectsof law practice like document review,sorting through voluminous information,and optimising productivity.

“AI is only as good as its training andprogramming, so always exercise carewhen relying on generative AI to compose
legal documents and make sure any
propositions of law or legal citations
it includes are valid and proper.”26 | irglobal

Q3
How is your jurisdiction preparing
to tackle bias and transparency ingenerative AI tools?
A handful of bills have been introducedin the Massachusetts legislature aimed
toward state regulation of generative AI.
One in particular, S.31, stands out. Thisbill was written with the help of ChatGPT,
a popular generative AI website. Bill
S.31 focuses on three major concerns:
preventing bias against groups andindividuals, transparency in using AI
and preventing plagiarism, and theprevention of unjust data collection fromindividuals. The bill does not go into
detail about what would be consideredbias against groups or individuals. It
does, however, require large-scale AI
companies to be registered with the
Attorney General’s Office and provide
regular risk assessments. Hopefully, theregular risk assessment and reports will
be sufficient to mitigate potential bias.
Additionally, the bill does take specificmeasures to ensure transparency,such as the requirement of a distinct
watermark that must be generated alongwith any text. There are several other bills
that have recently been introduced to the
Massachusetts State Senate regarding
generative AI software, but none of themfocus as much on bias and transparency
as S.31 does. Other bills currently incommittee like S2539 and HD4788
tackle infrastructure and training in
relation to AI software.
Massachusetts Attorney General
Campbell has expressed great concern
about generative AI software and theneed for regulation. Campbell has
urged Congress and the Massachusetts
State Legislature to accelerate thecreation, passage, and implementationof AI-related bills, which bodes wellfor the speedy prevention of bias andencouraging transparency in this new
and rapidly developing technology.

With offices in Austin, Boston, & London, Thomas H.
Curran Associates, LLC represents a wide variety
of individuals, businesses, corporate entities, andgovernmental agencies in litigation and transactional
matters throughout the United States and Western
Europe. We have navigated a broad range ofcommercial litigation cases, including cross-borderinsolvency, institutional creditors’ rights, and bet-thecompany litigation, and have earned a winning trackrecord throughout the United States.
thcalaw.com

Thomas Curran speaking withIR Global members during aprofessional networking conference“With our innovative
approach to complex
litigation challenges,
we consistently andeffectively deliver
unparalleled value
to our clients.”

irglobal | 27

• THE STATE OF AI

ENGLAND

Generative AI
in MedTech
Stuart Hendry
CEO
HecoAnalytics Ltd

A

t HecoAnalytics we adviseon the application of Artificial
Intelligence (AI) to MedTech
as well as deploying AI to deliver healtheconomic solutions for our clients.
AI in MedTech encompasses theintegration of advanced computational
technologies into medical andhealthcare practices. AI encompasses
a range of techniques, notably
machine learning, natural language
processing and computer vision, whichenable systems to interpret complex
medical data. These technologies are
revolutionising MedTech by improving
diagnostic accuracy, personalisingpatient care, and optimising treatment
plans. For example, AI algorithms cananalyse medical images, such as X-rays
and MRIs, with exceptional speed
and precision, assisting radiologists
in detecting anomalies that might bemissed by the human eye.
Whilst AI has been in the public
consciousness for some time, renewedinterest has surged in generative AI,
particularly with publicly accessible
platforms such as ChatGPT and
Google’s Bard, which excel in producing
human-like text. Unlike traditional AI
systems that are designed for analysis
or prediction, generative AI models
focus on creation, employing advanced
algorithms like neural networks tounderstand and replicate complex
28 | irglobal

patterns and styles inherent in the data
they are trained on. In medical imaging,
generative AI models like Generative
Adversarial Networks (GANs) are used
to enhance image quality, generate
synthetic medical images for training
purposes and create detailed 3Dmodels from 2D scans, aiding inaccurate diagnosis and treatment
planning. Furthermore, generative AI
has significant potential in personalised
medicine, tailoring treatments and drug
dosages to individual patient profiles
by analysing vast datasets of medical
records and genetic information.
Whilst there is general awareness ofthe existence of AI and its application

to healthcare, another growing trend
in healthcare over the last decade ofsignificance is the move to value-basedcare. There is never enough money
to satisfy society’s healthcare needs,
and this problem is growing rapidly. In
summary, in the foreseeable future it will
not be possible to commission healthtech products without clear evidenceof the health economic benefit that the
new product affords. Interestingly, suchanalyses of health economics such as
cost-effectiveness have commonality
with the mathematical approaches of
AI. At HecoAnalytics we are harnessing
cutting-edge AI to allow evaluation of
new MedTech technologies to make this“In the foreseeable
future it will not
be possible tocommission healthtech products
without clear
evidence of thehealth economic
benefit.”
Stuart Hendry,
HecoAnalytics Ltd

Stuart has significant knowledge of the Medical Device and LifeScience industries and focuses on
digital health, ML and AI-based projects, with 30 years’ global work experience in the USA, Europe,
Japan, China and Australasia. He has held CEO positions in private and public companies and has
been a partner in leading Lifesciences/MedTech consultancy practices as well as Entrepreneur
in Residence and Business Mentor at Cambridge University. His corporate experience wasgained working with Pfizer Inc. before entering into senior management in small and mediumsized companies. Stuart has undertaken numerous consulting projects in strategy and businessdevelopment/planning, due diligence, and expert reports for large public companies as well as
SMEs. Stuart has a BSc and PhD in Biotechnology, is a Fellow of the Royal Society of Chemistry(FRSC), Chartered Scientist (CSci), Chartered Chemist, (CChem), Fellow of the Royal Society ofBiology (FRSB), Chartered Biologist (CBiol) and Member of the Institute of directors (MIoD).
+44 7780 607 159
stuart@hecoanalytics.com
irglobal.com/advisor/stuart-hendry

irglobal | 29• THE STATE OF AI“AI systems require large volumes of highquality data to learn effectively but healthcare
data often involves privacy concerns, isfragmented across different systems or isunavailable due to regulatory constraints.”
an efficient process, giving access tothese resources rather than traditional
labour-intensive paper-based reports.
AI’s ability to process and analyse vast
amounts of data can help identify themost efficient allocation of resources,predict patient outcomes, and evaluate
the cost-benefit of various healthcare
strategies. It can also assist in modelling
the long-term economic impacts ofhealthcare decisions, considering
disease progression, quality of life andpotential healthcare savings. This willlead to more informed, data-driven
decisions that balance patient needs
with economic sustainability.
The integration of AI in MedTech,
while promising, faces several challenges:• Data quality and availability. AI
systems require large volumes ofhigh-quality data to learn effectively
but healthcare data often involves
privacy concerns, is fragmented
across different systems or isunavailable due to regulatory
constraints.
• Interpretability. Many AI models,particularly deep learning systems,
are often seen as “black boxes”,
making it difficult for healthcare
professionals to understand how
these models function, which is
crucial for clinical decision-making.
This lack of transparency can also
hinder trust and acceptance among
medical practitioners.
• Regulatory hurdles present
a significant challenge. The
healthcare industry is highly
regulated, and obtaining approvalfor AI-based medical devices andtools is a complex and lengthy
process. Additionally, ensuringthat these systems are compliant
with healthcare standards andregulations, like HIPAA in the U.S., isessential but challenging.
30 | irglobal• Bias and generalisability. AI models

can perpetuate biases present in
training data, leading to inequitable
or inaccurate outcomes for certain
patient groups. Collaborative
development involving healthcare
professionals, AI experts, and patientscan enhance the relevance andusability of AI solutions.
• Integrating AI into existing
healthcare workflows poses
logistical and technical challenges,
requiring significant changes in
the infrastructure and training ofhealthcare professionals.
Addressing these challenges iscritical for the successful and ethicalimplementation of AI in MedTech.
Currently, there are no widespread
implementations of generative AI
specifically for providing healthcare
advice in the UK and Europe. The field
is rapidly evolving, however. Generative
AI is being explored in the provisionof healthcare advice in the UK andEurope, although its usage is subject
to stringent regulatory oversight andethical considerations.
In the UK, for instance, theNational Health Service (NHS) has
been investigating the potential ofAI, including generative models, tosupport clinical decision-making
and patient management. This
included pilot projects for AI-assisted
diagnosis and personalised treatment
recommendations. Similarly, invarious European countries, there
were initiatives to integrate AI into
healthcare systems, focusing on
enhancing diagnostic accuracy, patientengagement, and preventive care.
However, these applications wereusually in controlled environments,
often for research or in a limited
capacity, rather than being a standard

ENGLAND

About us...
aspect of healthcare provision. Key
concerns such as data privacy,
algorithmic transparency, andensuring the accuracy and reliabilityof AI-generated advice were central tothese developments.
The UK, Europe, and the USA are
adopting multi-faceted approaches
to tackle bias and transparency ingenerative AI tools. In Europe, thefocus is on regulatory measures, with
the European Union proposing theArtificial Intelligence Act, aimed atsetting strict compliance requirements
for AI systems to ensure fairness andtransparency. This includes guidelines
for high-risk AI applications, ensuring
they are subject to rigorous testing andcertification. The UK, while aligningwith similar principles, is leveraging its
National AI Strategy and the work ofbodies like the Centre for Data Ethics
and Innovation (CDEI) to address thesechallenges. This strategy includes
developing ethical frameworks andenhancing public-private partnerships
for responsible AI deployment.
In the USA, efforts are concentrated
on policy initiatives and regulatory
oversight, with agencies like the FDA
increasingly scrutinising AI-based
medical devices for biases. The
White House Office of Science andTechnology Policy (OSTP) has alsoemphasised the importance of AI
ethics and governance. Across allthese regions, there is a common
emphasis on advancing research in
AI fairness, investing in diverse andinclusive data sets, and fosteringcollaboration between government,
academia, and industry. This iscomplemented by initiatives to educate
and train AI developers and users inethical AI practices, aiming to integratetransparency and bias mitigation
into the fabric of AI development anddeployment.
In conclusion, generative AI is
gradually being introduced into thehealthcare sector, and it is still in a
nascent stage as a tool for providing
healthcare advice. However, its
widespread adoption is an inevitability
and those companies and healthcare
systems most able to adapt to its
specific requirements and benefits
will benefit greatly in terms of patient
outcomes and healthcare costs.

HecoAnalytics is committed to supporting healthtech
and lifescience companies to gain the health analytics
capability needed to robustly assess and sell theirproducts to a global digital health economy. The
company provides consulting services to life science
companies including health economics, market
access, pricing and reimbursement strategy, regulatory,
business planning and technical due diligence.
Increasingly the company’s focus is on Machine
Learning, AI and digital health applications where
it has particular technical expertise.
To provide ongoing market access support
to clients HecoAnalytics provides an easy-to-use
health analytics platform supporting companies

on a personalised health economics (HE) journey.
HecoAnalytics facilitation sessions start this journeyand support companies with a suite of configurable
tools that synthesise evidence data, AI pathway andpatient models with online health economic models.
HecoAnalytics tools are aligned with the requirementsof the National Institute of Care and Health Excellence(NICE) technology assessment (HTA) programmessuch as the Medical Technologies Evaluation
Programme (MTEP), demonstrating the value of acompany’s product to NICE and other HTA bodies
and payers.
hecoanalytics.com

irglobal | 31• THE STATE OF AI

SWEDEN“Generative AI is
now available in aform that anyone
can access.”

Taming AI:
A how-to guide

Claes Ottoson and Elaine Gylling,
Independia Law Firm AB

Claes Ottoson Founder & CEO
Elaine Gylling Senior Associate
Independia Law Firm AB

In August 2023, the Swedish
government decided to position
Sweden as a leader in AI adoption
for public administration, encompassing
the entire judiciary system, from district
courts to the Supreme Court.
AI is not new. For example, themost prominent online video platform
has used an AI to run its search andrecommended content since 2016. The
recent upswing in popularity comesfrom Open AI´s decision to make AI
software publicly available. This meansthat generative AI is now available in aform that anyone can access. With thesetools any person can ask a generative AI
program, readily available for free online,
to answer a question, code a webpage
with buttons with different functions, write
a recipe, or write a poem. Not only is text
available, but other software can also
create images, video, music, sound,and speech.
There are four concerns that should
be taken into consideration whenusing AI: copyright, model collapse,
misinformation, and bias.

Copyright
AI can be instructed to generate content
mimicking specific styles, which raises
questions about intellectual property
and transparency. Generative AI istrained on datasets, often comprising
32 | irglobal

images or texts sourced without explicit
permission, leading to uncertainties
about the legality of this practice.
The issue extends to written
works, exemplified by a 2020 case in
the U.S.A. where Thomson Reuters
accused Ross Intelligence of unlawfully
copying content from its legal researchplatform Westlaw to train a competing
artificial intelligence-based platform.
This likely caused Ross Intelligence’s
shutdown in January 2021, citing thecosts of the “spurious” litigation.
Currently there are ongoing disputes
involving many tech companies
including Meta Platforms (META.O),
Stability AI and Microsoft-backed(MSFT.O) OpenAI. In these lawsuits,
the companies are facing authors,visual artists, and other copyrightowners over the use of their work to
train the companies’ generative AI
software. The lack of legal requirements
for transparency regarding dataset
sources further complicates the ethicallandscape surrounding generative AI.

Model collapse
Many generative AI models are released
onto the internet for continuous learning
post-training on pre-establisheddatasets. However, as generative
AI is readily available, the influx ofAI-generated content, and the fact that

the AI that steers the search algorithm isalso biased towards “click-bait” content,
a lot of search results are filled with
AI-generated content. AI is now training
on AI-generated content, and when thishappens it is known to cause “model
collapse” where the output becomes
nonsensical, and the AI generator isbroken.

Misinformation
Humans can often identify generative
works in video, speech, or images.
This may be done by noticing
odd movements in video, unlikely
pronunciation in speech or weird details
in images, such as seven-fingered

Claes Ottosson is the founder & CEO of Independia
and a highly respected lawyer with extensive
experience in legal problem-solving. With almost thirty
years’ practice, he has established himself as a trusted
professional. In addition to courtroom expertise, Claesbrings a unique perspective on negotiation, trade, andsales in sectors such as B2B/B2C, retail, real estate,
construction, and contracting. This valuable insightcomes from his involvement in company boards andacademic experience.
+46 8400 251 82
claes.ottosson@independialaw.com
irglobal.com/advisor/claes-ottosson

Elaine Gylling specialises in civil law, focusing
on civil disputes, tort law, and contract law. She
adeptly handles a range of matters, including
business law, contract law, and property law.
Elaine consistently provides her clients witha sense of security, with deep committedcommitment and a high level of care andattention to detail.

+46 8400 251 84
elaine.gylling@independialaw.com
irglobal.com/advisor/elaine-gylling

irglobal | 33

• THE STATE OF AI

SWEDEN

About us...

“The lack of legal requirements fortransparency regarding dataset sources
further complicates the ethical landscape.”$5,000 (£3,935) after the firm submitted
fake citations, generated by ChatGPT, ina court filing.
The AI industry proclaims that AI
can’t “lie”, since it has no intention.
Instead, falsehoods are called“hallucinations”. Not only does thismean that AI can make errors thatare hard to spot, but bad faith actors
will also have no hindrance to the useof generative AI to create whatever
misleading content they wish. Thismeans that bad faith actors cangenerate thousands of webpages
with news articles, blogs, and sciencepublications, all with the objective of
spreading specific false information.
This may also create a bias in the goodfaith AI that is trained online, this bias
being controlled or at least affectedby bad faith actors. Bad faith actors
may also use generative AI to create
hundreds or thousands of seemingly
authentic human profiles to comment
on current online events, giving the false
appearance of a strong public opinion
decided by a single person, faking thevoice of thousands.

Bias
hands. However, distinguishing
AI-generated text from human-written
text is challenging. There have been
several instances in Sweden withdisciplinary matters where courts must
determine if students used textgenerating AI to complete assignments— a very daunting task.
AI-generated text is meant to soundlike a plausible sentence. However, theinformation generated is not meant tobe an accurate representation of reality.
This means that modern text-generating
AI will “imagine” a source of information
or a factual answer to a question
if it does not have the information.
This culminated in a district judge in
Manhattan ordering Steven Schwartz,
Peter LoDuca and their law firm
Levidow, Levidow & Oberman to pay
34 | irglobal

AI has varied effectiveness within
specific subgroups, as biased datasets
lead to inaccuracies. For example,
facial recognition software may excel
at recognising certain demographics,
while struggling with others. Even
with complete datasets, biases canpersist, such as in criminal risk
assessment AI trained on historical
data reflecting systemic injustices. In
medical applications, biased AI poses a
direct harm risk, as it may not function
effectively for every patient.

AI in the European Union,
Swedish government agencies,
and public application
The European Union is actively
addressing concerns related to AI by
developing a new AI Act. On January
22, 2024, the pre-final text of theEuropean Union’s Artificial Intelligence
Act (“AI Act”) became accessible online.
This draft was endorsed by all 27 EU
Member States on 2 February and aplenary vote is scheduled for 10th –11th April, meaning that some changes
may apply. The AI Act harmonises
rules for placing AI systems on the
EU market, bans certain AI practices,
sets requirements for high-risk systems
and operation obligations, mandates
transparency for AI systems intended tointeract with natural persons, emotion
recognition systems and biometriccategorisation systems, and AI systems
used to generate or manipulate image,audio or video content, and outlines
market monitoring protocols.
In Sweden, the Agency for Digital
Government promotes AI use by
establishing trust through transparency
and information. While AI hasn’t
been proposed to replace judges incourt cases, its current applications
by government agencies include
translating judgments, classifying
emails, transcribing speech to text,
validating passports, digitising
handwritten text, OCR, anonymising
documents, classification of incoming
e-mail, and other tasks that aresuitable for AI. These applications
aim to enhance efficiency withoutcompromising public trust.
Individuals or businesses should
evaluate available AI services forvarious purposes. In legal settings, AI
may assist in marketing, scheduling
meetings, speech-to-text conversion,
OCR for handwritten text, andgenerating suggestions for simple
communication, such as Christmas
party invitations. However, the current
functionality requires thorough editing
before anything generated can beused. Even this article was input into
generative AI and condensed byhalf, the results of which you are now
reading, after much editing. The fullarticle is available on Independia Law
Firm’s website, for comparison.

Independia Law Firm has accumulated extensive
experience in various legal areas, successfully
representing and advocating for our clients in diverse
situations. We take great pride in the fact that a majorityof our clients have been returning to us for many
years, seeking our assistance in disputes, litigations,arbitrations, and negotiations related to working life,
real estate, and business matters.
Our clients return because they feel secure with ourdedicated staff, who are the heart and soul of the
Independia family. Our team possesses a wealth ofexperience and expertise in business, migration, andreal estate law. Our clients can always trust that they
are in capable hands, be it for family, work, or businessdisputes.
We are proud to announce our foray into artificial
intelligence, as we explore how this cutting-edge
technology can revolutionise the legal industry.
By embracing AI, we aim to streamline processes,
enhance efficiency, and provide our clients with evenmore comprehensive and effective legal solutions.
independialaw.com“Individuals
or businesses
should evaluate
available AI
services forvarious purposes.”
irglobal | 35

• THE STATE OF AI

AUSTRALIA

The tool,not the answer:
AI in disputes
James Conomos
Founder and Principal Partner
James Conomos Lawyers

Q1
Is generative AI already being
used in dispute resolution inyour jurisdiction?
About 32% of Australian employees
use some form of Generative AI, but
about two-thirds of those believe their
manager does not know. Only 9.5%of large Australian businesses (those
employing over 200 employees) haveofficially adopted AI. This drops to 1.4%
among all businesses in Australia.
For lawyers, the numbers are evenmore limited in that:• Only 15% of Australian law firms
plan to adopt AI within a year;• To date, the use of AI has been
limited to processes such as TAR(Technology Assisted Review) incase such as McConnell Dowell v
Santam Ltd (No 1) [2016] VSC 73,
where TAR was used to limit the
number of documents on disclosureof documents in litigation;• TAR has also been used by Qld
solicitors in a number of cases
including Parbery v QNI Metals Pty
Ltd [2018] QSC 180; Santos Ltd v
Fluor Australia Pty Ltd (No 4) [2021]
QSC 296 and Golden Vision Gold
Coast Pty Ltd v Orchid Avenue Pty
Ltd [2022] QSC 49, [142]-[143].
It has been reported that many
lawyers across Australia have plans
to implement the use of AI with some36 | irglobal

Jim has more than 30 years’ experience, and leads
the firm’s strategic direction, which has always focusedon effective and efficient problem resolution. He is arecognised leader in commercial litigation and insolvency
law and has garnered a widely respected reputation within
Queensland’s legal community.
Jim’s impressive career has seen him serve as
the Queensland State Chair of the Insolvency andReconstruction Committee of the Business Law Sectionof the Law Council of Australia, Queensland State Chairof the Insolvency and Reconstruction Committee ofthe Queensland Law Society and the National Chair of
the Insolvency and Reconstruction Committee of theBusiness Law Section of the Council of Australia.
+61 7 3004 8201
jim@jcl.com.au
irglobal.com/advisor/james-conomos

reservations including:• Some larger firms believe ChatGPT
is not ready to provide complex
advice but may be able to do casesummaries or TAR;
• Allens is reported to have invested ina regulatory tech start-up called Red
Marker to automate legal processes;• In 2016, Corrs Chamber Westgarth
were reported as having taken a 50%
stake in an AI automation AI start-up
that uses technology assisted
narrative review to analyse contracts,
identify their important clauses andworks within company policies andthe country’s regulations;• Norton Rose Fulbright is reportedlyusing an AI chatbot to give basic

answers to clients’ questions aboutchanges to law of data protection
and privacy (specifically thechanges to legislation).
The kinds of Legal Generative AI
tools that currently exist include:• Amica, a government-funded tool thathelps with family law disputes: theprogram is designed for separating
couples who are still amicable.
• Spellbook: a website fuelled by
ChatGPT4 that purports to havespecialised legal knowledge;• ClauseBase: a drafting software forlegal experts that is experimenting
with AI and smart templates and fulldoc automation.

MY ADVICE...
Use AI as a tool, not the answer.
When using AI, remember your legal and ethicalobligations.
Develop an AI usage policy in your firm, so thateveryone is on the same page.
Train all staff on how to use and implement AI.

Q2
How do you feel about generative
AI in disputes? Could ChatGPT or
related applications pose a faster,fairer dispute resolution process,or does it pose a serious risk to
the resolution process?
The advantages of using generative AI
in disputes includes:• Time and cost saving• Generative AI could be used as afilter, dealing with the less complex
cases so judges and other legal
professionals have more timewith emotionally challenging andfactually or legally complex cases• AI has endless uses in legal practicebeyond merely asking it questions oflaw or predicting legal outcomes• Unlike humans, AI will not get tiredor hungry
The disadvantages of using
generative AI in disputes includes:• The risk of a client information leak
– AI will require extensive training
and massive amounts of data
• Chat GPT explicitly collects data
and may share it with third parties
without notice• ‘Hallucination’, the phenomenon of
AI creating entirely false answers.

About us...

Q3
How is Australia preparing totackle bias and transparency
in generative AI tools?
Australia has 8 AI Ethics Principles;
they are a voluntary and aspirationalframework:• Human, societal and environmental
wellbeing: AI systems should
benefit individuals, society and theenvironment• Human-centred values: AI systems
should respect human rights,
diversity, and the autonomy ofindividuals• Fairness: AI systems should be
inclusive and accessible, andshould not involve or result in unfair
discrimination against individuals,
communities or groups• Privacy protection and security: AI
systems should respect and upholdprivacy rights and data protection,and ensure the security of data
• Reliability and safety: AI systems
should reliably operate in accordancewith their intended purpose• Transparency and explainability:
There should be transparency andresponsible disclosure so people
can understand when they are being
significantly impacted by AI, andcan find out when an AI system isengaging with them
• Contestability: When an AI systemsignificantly impacts a person,
community, group or environment,
there should be a timely process toallow people to challenge the use oroutcomes• Accountability: People responsible

for the different phases of the
AI system lifecycle should be
identifiable and accountable forthe outcomes of the AI systems
AI is subject to existing regulationin Australia including:• The 2023-24 federal budget
provided $101.2 million for new
tech including quantum and AI• A discussion paper called “Safeand Responsible AI in Australia” waspublished and the public was called
upon for responses that address
gaps in the research and legislation.
Over 500 responses were received
and 447 were published• The Office of the Information
Commissioner created and sent a
submission about AI to the CSIRO,
demonstrating communication andcooperation between governmental
bodiesOf interest is that the Full Federal
Court of Australia has decided that AI is
not a legal person so is not capable ofholding patents.
Australian International Commitments
Concerning AI including the signing of a
new OECD principle on AI, including:• To facilitate investment, bothpublic and private in research anddevelopment;• To create an nvironment for ethical
AI to grow• To support workers through the AI
transition• To co-operate internationally in thecreation of standards, in sharing
information and in working towards
responsible AI
Australia was a founding member of
the Global Partnership on AI (GPAI).

jcl.com.au

James Conomos Lawyers was established byJames Conomos in July 1992 as a boutique legal
firm offering specialist expertise in commercial
litigation and insolvency. The firm came into
being because James is passionate about
achieving positive outcomes for clients andproviding real value for money.
Since then, James has pursued his desire

to help younger lawyers learn the art of law andproblem solving. Through his mentoring, Jameshas shaped a team of capable and ambitious
lawyers who will adeptly solve your legal
problems within a realistic time frame.
Based in modern offices in the heart ofBrisbane’s central business hub, our team has
now grown to a total of 15 staff.

irglobal | 37

• THE STATE OF AIJAPANMY ADVICE...

AI’s complex
relationship with IP
Kenji Kuroda
Partner
Kuroda Law Offices

Q1
Is AI complicating the copyrightprocess in your jurisdiction?
Kenji Kuroda passed the National Bar Examinationin 1983 at 20 years of age. After developing practicalexperience as an attorney, he attended law schoolin China (Fudan University Faculty of Law, Advanced
Study Course), Denmark and the United States (Duke
University Law School). Following his admission to
the bar in New York in the United States, Mr. Kuroda
founded Kuroda Law Offices and Kuroda Patent Offices
in 1995, later establishing our Shanghai office in 2004
and opening the first Japanese law firm in Taiwan in
2009, specialising in cutting-edge fields, such as
Chinese law, information technology, and intellectual
property, with the aim of providing strategies tailoredto the customer’s needs.
In its ranking of leading attorneys, Nihon Keizai
Shimbun selected Mr. Kuroda second in theinternational law section and eighth in the internationallaw section (December 19, 2012). In addition, Nikkei
Business selected Mr. Kuroda third in the international
matters section of its business attorneys ranking(December 22, 2014) and selected Mr. Kuroda fifth
in the China practice section (December 7, 2023).
+81 3577 553 01
kekuroda@kuroda-law.gr.jp
irglobal.com/advisor/kenji-kuroda

38 | irglobal

Japan’s engagement with AI
technologies presents new challenges
for copyright law, particularly as
generative AI becomes more prevalent.
The core issue lies in the ambiguityof applying existing copyright laws toAI-generated content, which raises
questions about copyright infringement
and the extent of protection offered.
Three main areas are affected:
Learning/Development Stage:The use of copyrighted material
in training AI typically doesn’t
constitute infringement under the2018 amendment (Article 30-4 of the
Copyright Act). This provision allows
for the use of copyrighted works forpurposes beyond personal enjoyment,
like data analysis, as long as it doesn’t
unreasonably prejudice the interests ofthe copyright owner. Nonetheless, theambiguity in defining ‘unreasonableprejudice’ complicates the processof assessing infringement.
Generation/Utilisation Stage: To
establish copyright infringement,

two key factors are considered: thesimilarity of the work and its reliance onan existing work. Typically, reliance isdeduced from the degree of similarity,with the assumption that significant
similarity implies dependence. However,unique aspects of AI-generated content
that closely mimic copyrighted works
without explicit reliance on an existing
work complicate legal judgments. Thereis also the problem that if pirated orother illegally uploaded copyrighted
works are widely used as training datafor generative AI, copyright infringement
may be encouraged.
Copyrightability: The Copyright Act
protects human creative expression,often excluding AI-generated content
from copyright. However, there ispotential for recognising human creative
involvement in AI creations, suchas in the crafting of prompts or theselection of outputs. Yet, establishingclear criteria for this recognition andthe extent of copyrightability remainsa challenge. Complicating mattersfurther is the difficulty in distinguishing
between content created by AI and thatby humans.

Q2
Are creators starting to act on
copyright infringements, and haveany precedents been set yet?
As generative AI technology advances,
creators and copyright holders in

Stay Informed: Keep abreast of the latest policy
developments and legal guidelines regarding AI
and IP rights in Japan, especially the outcomes of theIntellectual Property Strategy Headquarters and the
Agency for Cultural Affairs’ forthcoming reports.
Jurisdictional Compliance: While determining
applicable law is done on a case-by-case basis,the likelihood of the Japanese Copyright Act being
applicable is increased by the presence of AI learning,development, or operation servers within Japan, or when
AI-generated content is transmitted to users in Japan.
Copyright Compliance in AI Learning: Japanis sometimes dubbed the “machine learning
paradise,” but there are limits. Reproducing and using
training data provided for a fee, without making therequired payment, circumventing technical protections
to use data for AI training, and special AI trainingthat aims to output the representation of a particular
existing copyrighted work may constitute copyright
infringement and should be avoided.

Japan express increasing concern
over potential infringements on theirintellectual property.
The main issues revolve aroundthe unauthorised use or ‘free-riding’ of
copyrighted materials during the learning
stages for AI and the risk of AI replicating
creative styles without permission.
This has sparked a debate over thesufficiency of current protections under
the current Copyright Act, particularly the2018 amendment (Article 30-4).
A number of creator-relatedorganisations have issued statements
expressing their concerns about
generative AI, but they are unanimous

About us...

in including a request for clarification of
the interpretation and strict applicationof the provisions (Article 30-4).
Proposals include:• Implementing opt-out mechanisms
for the use of copyrighted materials
in AI training datasets.
• Enhancing transparency about thedatasets AI technologies use.
• Establishing clear guidelines for thecreation and use of AI-generated
content, including acknowledgmentof AI’s role in content creation.
• Considering amending theamendment to Article 30-4 of the
Copyright Act.
These requests from creators are
currently being considered in ongoing
discussions on AI and copyright at
the Agency for Cultural Affairs andCabinet Office study group discussed
below. However, as of now, Japan has
yet to see any precedents specificallyaddressing these issues, marking
an uncertain legal landscape thatstakeholders are keen to navigate.

Q3
Are there any moves to legislate
AI-related IP (e.g. Artificial
intelligence policy) in yourjurisdiction?
Since the introduction of the “Society 5.0”
concept in 2016, Japan has maintained apro-AI policy stance, favouring a soft-law
approach, primarily through guidelines,

with the notable exception being the2018 Copyright Act amendment.
Following the outcomes of the G7
Hiroshima Summit and the initiationof the Hiroshima AI Process in 2023,
Japan has continued to refine its
domestic AI strategies, maintaining its
preference for soft-law mechanisms. Thisapproach allows for greater flexibility andadaptability, enabling policymakers to
respond promptly to the rapidly evolving
AI technology sector without the rigidity
often associated with formal legislation.
Current discussions within thegovernment, particularly those ledby the Intellectual Property Strategy
Headquarters and the Agency for
Cultural Affairs, are pivotal in shaping
Japan’s future AI and IP landscape. Aninterim report by the Intellectual Property
Strategy Headquarters is expectedaround spring 2024, with the Agency
for Cultural Affairs’ report scheduled
for March 2024. These reports are
anticipated to have a significant impact
on practical aspects of IP management
and copyright considerations in thecontext of AI. Judging from the draft
reports and other documents publishedso far, there appears to be a consensus
leaning away from immediate legislative
action or substantial legal reform.
Instead, the emphasis remains on
enhancing existing frameworks throughdetailed guidelines and stakeholder
consultations.
The goal remains to elucidate andaddress the challenges presented byapplying existing copyright laws toAI-generated content, thereby diminishing
ambiguities and enhancing legal clarity.

kuroda-law.gr.jp/en

Kuroda Law Offices (“KLO”) is headquarteredin Tokyo, and delivers a diverse range of legal
services in fields such as labour, corporate,
IP law, fraud investigation, and dispute
resolution to a varied clientele, including local
and international companies, and Japanesesubsidiaries of foreign corporations. Our offices
in Shanghai and Taipei, alongside our affiliate
KLO Consulting (Shanghai) Co., Ltd., enable us
to offer comprehensive, localised service.
We specialise in maximising client profits
through effective IP rights utilisation, strategicplanning for new products and services without
infringing third-party rights, and developing
methods to prevent litigation and disputes.
Our firm is experienced in handling litigationin various IP-related fields, including LED
technology.
Utilising our vast experience and expertise,
we continually adapt to meet the evolving needsof our clients and the market. At KLO, we arededicated to providing top-tier legal services,innovating in both established and emerging
fields on the world stage.

irglobal | 39• THE STATE OF AI

US – OHIOOUR ADVICE...

Faster, fairer
resolutions?

Embrace and Monitor AI: We should
cautiously embrace AI for its potential toenhance efficiency and fairness, while staying
informed about the inherent risks. We also needto stay aware of legal developments and new
regulations.
Human Oversight and Collaboration:
Ensuring human oversight in AI usage iscrucial for maintaining balance and accuracy.

Chris Niekamp Partner
Andrew Stebbins Partner
Buckingham, Doolittle & Burroughs, LLC

Q1
Is generative AI already being
used in dispute resolution in
the United States?
In the United States, the integration ofgenerative AI into dispute resolution
is gaining momentum. The use ofgenerative AI is not limited to drafting
and research; it is also becoming
instrumental in analysing legal
documents and even in preparing initial
drafts, marking a transformative phasein the legal landscape.
This momentum is supported
by initiatives such as the American
Arbitration Association’s (AAA)AI Working Group. This group’s
endeavours, particularly with thedevelopment of the ClauseBuilder AI(Beta) tool, underscore a significant
shift towards technology-driven legal
processes. The ClauseBuilder AI (Beta)
tool is designed infuse AI into theexisting ClauseBuilder tool to further
aid in crafting arbitration and mediationagreements, illustrating the practicalapplication of AI in complex legal tasks.
“This trend is reflective of the broader
legal industry’s embrace of AI for
enhanced efficiency and accuracy,” said
David Myers, a partner at Buckingham,
Doolittle & Burroughs, LLC who focuses
on data privacy, cybersecurity and AI
governance. “Courts are beginning tograpple with the implications of AI use
in legal proceedings. Many courts have40 | irglobal

misleading or inaccurate content. Whenpublishing a blog post, the impact
could be minor. However, in dispute
resolution, this could be devastating.
For example, two lawyers were fined by
a U.S. federal judge in June 2023 forsubmitting a filing, written by ChatGPT,
that cited completely made-up cases.

begun to require attorneys to disclose
when they utilise AI and verify theaccuracy of the information produced.”

Q2
How do you feel about generative
AI in disputes? Could ChatGPT or
related applications pose a faster,fairer dispute resolution process,or does it pose a serious risk to
the resolution process?
The advent of generative AI in dispute
resolution heralds a new era of legal
processes. AI can speed up dispute
resolution by automating routine tasks.
With the advent of generative AI, theability to draft entire documents could
truly change how dispute resolution ishandled. Disputes could be far quicker
to resolve, at a far lower cost. AI also
has the potential to reduce the influenceof human bias on outcomes.
However, we have all heard thephrase “garbage in, garbage out.”
The application of this concept to AI
is critical. If AI systems are trained on
biased data, the results we can get
will multiply those biases, rather thaneliminate them. It requires a carefulbalance of technological innovation,
oversight, and stringent ethics.
There is also a well-documented
risk of AI ‘hallucinations.’ Hallucinations
occur when generative AI creates

Chris Niekamp is Buckingham, Doolittle & Burroughs,
LLC office partner-in-charge of the Firm’s Akron,
Ohio office. He engages in a diverse Commercial andCorporate Law practice. Chris has represented national
and local banking institutions, large corporations andsmall businesses, debtors and creditors in all phases ofBankruptcy and Collection matters.
+1 3303 765 300
CNiekamp@bdblaw.com
irglobal.com/advisor/chris-niekamp

Andrew Stebbins is a partner who practises in thearea of defamation. He represents businesses andindividuals to restore and maintain their reputation
online. He is a successful litigator who has handled
every aspect of litigation and trial as a lead attorney inboth state and federal courts.
+1 2167 364 233
AStebbins@bdblaw.com
irglobal.com/advisor/andrew-stebbins

Q3
How is the United States preparing
to tackle bias and transparency ingenerative AI tools?
In the United States, we had asignificant moment on October 30,
2023, when generative AI enterednational policy. On this date, President
Joe Biden issued an executive orderon the Safe, Secure, and Trustworthy
Development and Use of Artificial
Intelligence. In this wide-ranging
executive order, President Biden
made multiple references totransparency and bias:• Section 8 of the order specificallystates that to protect American
consumers, patients, passengers,

About us...

Regular evaluation of AI tools for biases andaccuracy is essential, as is fostering collaboration
between technology and legal professionals.
Continuous Learning and Ethical
Discussions: Advocating for continual
training and education on AI in any sector isvital. Encouraging open discussions about
the ethics of AI in dispute resolution will help
navigate this evolving landscape.

and students, regulatory agencies
should review regulations regarding
AI. In particular, regulations should
require regulated entities to “conduct
due diligence on and monitor any
third-party AI services they use”
and to set proper “requirements
and expectations related to thetransparency of AI models andregulated entities’ ability to explain
their use of AI models.”• The order makes multiple mentionsof the need for many government
agencies to take steps to counteract
potential bias through the use of AI.
In the order, the President calls for thedevelopment of policies that protect
against AI bias across numerous
departments including Labor,
Housing and Urban Development,
Health and Human Services, Veterans
Affairs, as well as the Departmentof Defense, the Federal Housing
Finance Agency, the Consumer
Financial Protection Bureau, and
the Architectural and Transportation
Barriers Compliance Board.
President Biden’s executive orderalso discussed other issues, suchas equity, civil rights, privacy, andcivil liberties. But, the focus on how“The advent ofgenerative AI indispute resolution
heralds a new eraof legal processes.”important transparency and bias are to
the future of AI cannot be overstated.

AI’s Use in Smart Contracts
Another use of AI can be found in smart
contracts using a blockchain platform.
While this technology has been aroundfor some time, it may become more
widely accepted as AI is incorporated
into the smart contracts, making thecontracts “smarter.” This technology
employs an automatic system forresolving disputes, with the added
advantage that through blockchainbased payment methods the party thatwins will be paid automatically.
While this may seem attractive, thetechnology is new and not commonlyused in the States or any othercountry with an established judicial
or arbitration system. The process
may employ an appellate process but
there is no proven legal track record toensure that the results will follow any
governing law. This technology is morecommonly used by rogue traders who
prefer confidential transactions, outside
traditional jurisdiction. It is unlikely in thenear future that these contracts will be
used in mainstream transactions unlessthe AI develops a track record, and therewards outweigh the risks.

bdblaw.com

Buckingham, Doolittle & Burroughs is a
corporate law firm that counsels middle-market
executives and business leaders all over
Ohio and beyond. Buckingham has served
Northeast Ohio for more than 100 years throughsophisticated and practical legal services. With80 attorneys in Akron, Canton and Cleveland,Ohio, Buckingham has extensive experience

working with owners of middle-market businesses
in all aspects of their operations. Buckingham’s
mission is to deliver meaningful experiences
through the practice of law, exceed expectationsin terms of service, counsel and business sense,
and to offer continuous value to the industries,
communities and clients they serve.

irglobal | 41

• THE STATE OF AI

VIETNAMMY ADVICE...

Reasons
for caution+84 2838 421 242
hoangchuong.le@letranlaw.com
irglobal.com/advisor/stephen-le42 | irglobal

Globally and in Vietnam, GenAI isstill in its nascent stage when it comesto dispute cases necessitating thedevelopment of existing law, applicationof the law to novel situations, and theabsence of a substantial volume of caselaw. Factors such as the demand forbroader considerations of public policy
and local context further contribute tothis complexity.

Q2

Stephen Le
Founder
Le & Tran Law Corporation
Stephen, a senior trial lawyer and founder of Le & Tran,brings an illustrious career underscored by an impressive
background in litigation, arbitration and criminal defence.
His expertise, coupled with a mastery of Vietnam’s legal
system, positions him as a formidable player in the field.
In 2017, Stephen was awarded the prestigious“Disputes Star of the Year” from AsiaLaw Profiles.
Since then, he has been consistently ranked in reputablepublications such as Chambers Asia Pacific, Legal500
and Benchmark Litigation. Stephen’s expertise has also
been acknowledged by multinational enterprises such
as Petronas (Malaysia), who endorsed Stephen as
the Best Trial Lawyer they have ever worked within Vietnam.
Throughout his career, Stephen has
advised and represented 50+ global
corporations and 200+ individual
clients. His influence also extends
to the business community,
where he actively contributes
to legal discourse throughseminars in collaboration
with AmCham Vietnam.

At the end of the day, AI is not a passing trend
nor an impending apocalypse - rather, it stands
as a nascent tool with the potential to significantly
reshape the landscape of legal work and redefine
revenue streams for law firms. The current state of AI
is akin to its infancy, and while it continues to evolve
beyond its “teenage” phase into a future state of
maturity, it is still wise for us to be cautiously optimistic.

Q1
Is generative AI already being
used in dispute resolution inyour jurisdiction?
Lawyers in Southeast Asia are aconservative bunch, reflecting aprofession and culture that places
a high premium on preparedness,sagacity, and adherence to precedent.
No doubt, there are plenty of cautionary
headlines globally that nudge us in thesame direction.
Simply put, we do haveplenty of good reasons to bewary - the lack of credibility
and transparency of GenAI
providers on their training
datasets, the glaring bias
particularly in areas likerace and gender, the realrisk of ‘hallucination’,the lack of privacy
safeguards andmore. In international
arbitrations, the stakes
are simply too high.

How do you feel about generative
AI in disputes? Could ChatGPT or
related applications pose a faster,fairer dispute resolution process,or does it pose a serious risk to theresolution process?
I would hesitate to form a definitive
black-or-white position on the use of

About us...

GenAI in disputes. I could think ofseveral reasons why it would be helpful
and other reasons why it would bedamaging.
GenAI platforms such as ChatGPTand Google Bard are essentiallypredictive text machines that weretrained on a gargantuan amount ofmaterial from undisclosed sources.
They may seem like fact-churning
sophisticated search engines but are
more accurately categorised as content
creation tools that were designed tocreate new and original content outside
the parameters of their original training
materials. Their priority is not to be“right”, no matter how confident andaccurate they sound.
We’ve seen how ChatGPT canseriously sabotage legal professionals.
GenAI tools were never meant to be
used in this way without the oversight ofthinking, breathing and living experts.
Still, I am not a tech-sceptic lawyer who
is resistant to change. I truly believe that
AI has a place in certain aspects of the
dispute resolution process, particularly
in handling extensive volumes of
documents and data typically handled“We’ve seen how ChatGPT
can seriously sabotage
legal professionals.”by a team of document reviewers,
translation/transcription services,predictive analysis for more thoroughcase preparations, and more. But theseare minor roles and we cannot diminish
the pivotal role of human input andoversight.
In essence, while we findinspiration in the potential of AI, it has
a considerable journey ahead to instil
confidence, particularly within thedispute resolution landscape.

Q3
How is your jurisdiction
preparing to tackle bias andtransparency in generative
AI tools?
The use of AI currently remains largely
unregulated in Vietnam, and it will
be increasingly necessary for thegovernment to implement safeguards
to ensure that it can be used reliably
and fairly. In the meantime, lawyers willneed to be aware of the risks, take acautious approach to using unknownor new AI tools, make sure that theirclients’ data is kept confidential andprotected against unauthorised use,
and take steps to be ahead of thelearning curve.

letranlaw.com

Le & Tran, distinguished as a premier law firm in
Vietnam, has garnered widespread acclaim fromboth the business community and international
legal entities, solidifying their reputation as
preeminent legal professionals in the region.
Over the past 12 years, the team’s unwaveringcommitment to excellence and integrity has
propelled the firm to prominence, establishing Le& Tran as a formidable presence in the realms ofcommercial litigation and arbitration in Vietnam.
The firm consistently receives internationalrecognition, earning accolades from multinational
clients and esteemed organisations like
Chambers & Partners Asia-Pacific and Legal500.
Poised for transformative growth, Le & Tran
has its sights set on evolving into a leadinginternational law corporation, guided by astrategic vision built on three pillars: internationalfinesse, unrivalled local expertise, andoperational mastery.
Internationally, Le & Tran draws on keen
corporate insights from global clients such
as QBE, Marvell Technology, Petronas, andothers, seamlessly aligning international
corporate culture with local governance. Locally,
their proficiency in commercial litigation andwhite-collar crimes is demonstrated through theirimpressive track record in navigating complex
legal scenarios with high levels of precision anddedication. Le & Tran also employs high-tech
automation and systems in their processes,
underscoring their commitment to excellence inlegal service delivery, and putting them at theforefront of innovation and change.

irglobal | 43

US – NEW YORK

About us...
EXPERT VIEW:

Arbitration
versus Litigation
Michael Einbinder
Founding Partner
Einbinder & Dunn LLPI

n my practice, I have tried casesin court as well as in arbitration. I
am also an arbitrator and have held
numerous hearings as both an individual
neutral and as a member of a panel. I
have often discussed with other lawyers
whether arbitration or litigation is thebest method for dispute resolution.
My experience and perspective as an
advocate and an arbitrator lead me to
an inevitable answer: it depends. The
prevailing perception of arbitration is that
it is faster, cheaper, and more efficientthan litigation. This is true, with somecaveats.
In my experience as a litigator andan arbitrator, commercial cases takeabout nine months from initiation tocompletion, with some complex cases
taking even longer. Disputes, whether
in court or an arbitral forum, can befinancially and sometimes emotionallytaxing, and given the time differential
between the two methods of dispute
resolution, the opportunity to minimise
this toll by reducing the length of a caseMichael Einbinder is a founding Partner of Einbinder & Dunn. He is aparticipating member of the American Bar Association Forum on Franchising
as well as the New York City Bar Association. He is also a member of theInternational Franchise Association, the New York State Bar Association
Committee on Franchising, and the Association of the Bar of the Cityof New York (Panel Memberships on Franchise Law, Commercial
Law and Commercial Litigation). He is a Member of the American
Association of Franchisees and Dealers, and is past chair of theAmerican Franchisee Association Legal Symposium Steering
Committee. He is also a member of the American Bar Association
Section of Dispute Resolution, participating in the Arbitration
Committee and Ethics Committee.
+1 2123 919 500
me@ed-lawfirm.com
irglobal.com/advisor/michael-einbinder

44 | irglobal

ed-lawfirm.com

Einbinder & Dunn’s vision today and since its formation
more than 30 years ago, is to offer clients real value by
providing personalised, cost-effective legal services. We
offer a sophisticated practice closely tailored to the needsof each client. Based in Midtown Manhattan, with offices inWhite Plains and Millburn, New Jersey, Einbinder & Dunnserves mid-size and larger companies as well as small
businesses and entrepreneurs.
Our practice focuses on a range of key areas, including
franchise law, commercial litigation, real estate law,business law, fashion law, restaurant law and trusts andestates. This range of highly diverse but interrelated areasof focus represent an array of proficiencies that our firm
utilises to conceive unique, interdisciplinary strategies– the likes of which larger firms lack the versatility toemploy – which are finely tuned to the individual needs ofeach client. Our years of experience in the areas in which
we practice make us a recognised authority in many areas,such as franchising.

should not be taken for granted.
To proceed with an action in the court
system, the parties put themselves at
the mercy of the court’s overcrowded
calendars. Arbitration, on the other hand,offers much more flexibility. Hearings
can usually be scheduled in a mannerthat is convenient for the parties involved.
Further, arbitration’s rules of evidence
are also less strict; these procedural
rules can limit costly and time-consuming
aspects of court cases, such as motion
practice and discovery (for example,
depositions). Because arbitrationis quicker and is a generally lesscomplicated process, legal fees tend tobe lower in cases decided in arbitration.
Importantly, arbitration hearings can be
conducted privately, and decisions
are not public, thereby
affording confidentiality
on top of efficiency.

Arbitrators are also often experts
in the subject matter of disputes theypreside over. In fact, some arbitration
provisions require arbitrators who havesuch expertise. This process puts thechosen neutral in a unique position tolimit costs and time by guiding a more
tailored process.
Finally, parties in arbitration haveagency in the arbitrator-selection
process (whereas there is none in court,
where judges are assigned randomly)
even when not choosing a subject
matter expert. In arbitration, when acase is filed with JAMS or The American
Arbitration Association, these prominent
arbitral organisations usually provide apool of potential arbitrators specific tothe case. After that, parties begin the
striking process, in which both sides
can remove candidates that they see
as problematic. Further, this allows (atleast in theory) the parties to settle on
an arbitrator most likely to leave them
comfortable with the ultimate factfinderand decision-maker.
But for all its efficiency anddiscretion, arbitration also carries“Because arbitration isquicker and is a generally lesscomplicated process, legal fees
tend to be lower.”notable downsides.
To start, despite being generally lessexpensive than litigation, arbitration canstill be costly. Filing fees alone can bevery high. The filing fee with JAMS, forexample, is $1,750 for two-party matters,
and $3,000 for matters with three or moreparties. For AAA, filing fees depend on
the amount disputed in the claim. At aminimum, filing fees are $1,725; at most,they can be (and often are) north of$25,000. In many arbitral organisations,the arbitrators are experienced
practitioners. At JAMS they are often
retired judges. In either case, because
arbitrators are paid for the time they
spend on a case the costs can quickly
escalate. And these costs can triple whena case has to be decided by a panel ofthree arbitrators. Assume the hourly rate
for an experienced arbitrator is $750 per
hour and the hearing is three eight-hourdays long. Arbitrators also charge for thetime prior to the hearing and after thecase is closed (and an award is drafted),
which is often equal to time spent at ahearing. In this hypothetical case, anarbitrator will bill for 48 hours of timeat $750 per hour. The total is $36,000.
If there are three arbitrators, the fee is$108,000. In contrast, there is no costto having a judge and jury hear a case.
Judges are paid by the state or federal
government and the jurors don’t charge
the parties for their time. Even if theestimate is too high, it is easy to see how
the costs of arbitration can be extreme.
That’s true even if the process itself ismore streamlined and it may not be, atleast not all the time.
There are trade-offs to consider indetermining the best place to resolve
cases. These choices are usually
determined at the time a contract
between the parties is drafted. If it has
an arbitration clause, the choice ismade before any dispute arises. Even
when an agreement does not containsuch a clause, the parties can agree
to submit a dispute to arbitration. In
any case, it is important to consider
the relative benefits and downsidesof each method of dispute resolution.
An efficiently run arbitration with anexperienced arbitrator (not a panel ofthree) in a case that is not exceedingly
costly to file can be a great approach.
That said, in larger cases, the costs canoften be as high as a court case.
irglobal | 45

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irglobal | 47

• WEALTH PRESERVATIONISRAEL

Wealth management
in a challenging
climatePhillip Braude
CEO
Braude WealthPhilip Braude, founder & CEO of the Braude Wealthgroup, is an Investment Marketer licensed by the Israel
Securities Authority. He is also a CPA in the US & UK,
and a Trust & Estate Practitioner.
Philip has more than 20 years’ experience in wealthmanagement for expatriates in Israel. He has authoredvarious guides aimed at educating and supporting theIsraeli resident expat such as The Israeli Tax Guide,
Post Aliyah re-structuring Guide, Israeli Regulatory
Compliance Guide and many others.
+97 2299 215 19pbraude@anglocapital.com
irglobal.com/advisor/philip-braude

48 | irglobal“M

ay you live in interestingtimes” is an English
expression that is claimed
to be a translation of an ancient Chinese
curse. We do indeed live in “interestingtimes”, evidenced every time we open
the newspapers and read the headlines.
Added to the uncertainties that we allface on a global level, Israeli resident
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Clients of Israeli banks face major
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• Source of funds – Where was money
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• Tax compliance – Have these funds
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This article aims to explore theeffects of compliance and changing
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New residents in Israel enjoy agenerous 10-year post-emigration Israeli
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• In recent years, the Israeli shekel
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Ex-pat residents in Israel face a more
complex scenario, which may include:• Complying with laws and regulationsin their original country (Americans
resident in Israel are challenged bydual tax reporting requirements andadditional restrictions such as being
limited in investing if PFIC’s – Passive
Foreign Investment Companies).
• International sanctions (such as are
faced by Russian expats due to the

sanctions imposed on Russia).

• Enhanced due diligence (suchas are imposed on South African
residents and expats due to the
FATF grey listing of South Africa due
to South Africa not fully complying
with international standards aroundthe prevention of money laundering,terrorist financing and proliferation
financing).
• Differing tax regimes (such as are
faced by Australian expats who are
exempt from CGT on assets that theyacquired before 20th September
1985 but would be taxable in Israel
after the expiry of their 10 years post
emigration tax exemption).

Compliance Regulations
and Private Clients
Amongst the various complianceregulations faced by Israeli resident
private clients, I would note the following:
Anti-money laundering laws
• Anti-money laundering (AML) refers
to the web of laws, regulations andprocedures aimed at uncovering illicit
funds disguised as legitimate income.
• Financial institutions combat
money laundering with Know your
Customer (KYC) and Customer
Due Diligence (CDD) measures.
Know your Customer (KYC)• Regulatory compliance at financial

institutions starts with a process
called “Know your Customer” (KYC).
KYC determines the identity of newclients, and whether their funds
originated from a legitimate source.
• During the KYC process, financial
institutions will screen new
customers against a list of parties
that pose a higher than averagerisk of money laundering, criminal
suspects, individuals and companies
under economic sanctions andpolitically exposed persons (PEPs)
which encompass foreign public
officials and their family members
and close associates.
Customer Due Diligence (CDD)• KYC extends beyond vetting acustomer in the initial stages of
opening an account. Throughout
the account’s lifetime, financial
institutions must conduct Customer
Due Diligence (CDD) and maintainaccurate and up-to-date recordsof transactions and customer
information for regulatory complianceand potential investigations.
Data Protection• Data protection measures enable
a service provider to safeguard
and make data available under
all circumstances.
• It is also designed to protect
sensitive client information.

Strategies for Private
Clients in Israel
We advise the following strategies
to assist our clients in navigating themultitude of compliance requirements
whilst optimising their financial goals:• Keep paperwork and supporting
documentation.
• Ensure strict compliance with
relevant tax reporting requirements.
• Ensure wills and other legal
documents are kept periodicallyup to date.
• Work with knowledgeable & licensed
professionals in Israel and countryof origin.
Wealth management can bechallenging in uncertain economic
climates such as the one we are
currently experiencing. However, there
are steps that one can take that can help
individuals navigate these challenges:• Diversify investments: A welldiversified portfolio can help reducerisk. Consider investing in a mix
of stocks, bonds, and alternative
investments.
• Diversify currency exposure: Ensure
currency exposure to match yourlong-term spending needs.

About us...

• Reassess risk tolerance: The current
climate might require reassessing
your risk tolerance to ensure yourinvestment strategy aligns with yourcurrent financial situation and goals.
It is advisable to measure actual
performance against identified
goals on a periodic basis.
• Stay informed: Keep up to datewith the latest economic news andmarket trends to make informed
investment decisions.
• Review expenses: In difficult
economic times, it is important toreview expenses and ensure you are
not overspending or wasting money.
• Regulatory compliance: Ensure
your tax affairs and other regulatory
requirements are maintained up todate.
• Consult a professional: Consider
seeking the advice of a financial
professional who can provide
guidance on navigating uncertain
markets and optimising yourinvestment strategy.

Overall, it is essential to stay focusedon your long-term investment goals
and resist the urge to make impulsive
decisions based on short-term market
fluctuations. By taking a balanced
and informed approach, wealthmanagement can still be successfuleven in challenging climates.
The secret of successful wealthmanagement is succinctly summarisedin this well known saying “It’s not how
much money you make, but how muchmoney you keep, how hard it works foryou, and how many generations you
keep it for.” Let Braude Wealth assist
you in achieving your goals in thisprocess.

braudewealth.com/wealth-management

Braude Wealth was founded in 2001. Our specialty is
helping English speakers manage their wealth effectively
in Israel. We hold terms of business with leading financial
institutions in Israel and abroad, providing our clients
access to international investment opportunities that are
not readily available through Israeli financial institutions.
Braude Wealth offers financial planning, investment
management, retirement planning, and tax optimisation,and providing US-compliant investment portfolios.

irglobal | 49

• WEALTH PRESERVATIONPOLAND

Familyfoundations
Magdalena Dymkowska Partner
Magdalena Marciniak Partner
MDDP Michalik Dłuska Dziedzici Partnerzy

ABC of the Polish Family
Foundation

P

General goals
The family foundation serves the
purpose of accumulating property,
managing it in the best interests ofolish regulations are consideredsome of the most challenging.
Swift adaptation to these
dynamically changing regulations isinherently complex and, as a result, costly.
Polish regulations impose numerous
obligations on taxpayers, threatening
substantial penalties for non-compliance.
For instance, in the case of the annual
information on transactions with related
entities, failure to submit this form maytrigger a fine of up to EUR 8 million.
For these reasons, Polish investors
are actively seeking long-term solutions
to secure their wealth, while staying within
the confines of available legal and tax
solutions. In recent years, there have been
notable advancements in income tax
regulations, introducing various measuresdesigned to promote investment. One
such solution is the family foundation.
It is a novelty in our country.
Countries like Liechtenstein,
Switzerland, Austria, Malta, and Monaco
already permit taxpayers to establish
family foundations. Both in Poland andin foreign legal regimes, the primary
purpose of a private foundation istypically not to engage in businessbut rather to focus on the safekeepingof assets, wealth management andproviding benefits – whether in kind orin cash – to the designated beneficiaries.

50 | irglobal

A family foundation is an interesting
solution for managing private wealthand succession planning, allowing
tax-free wealth management andfreely structured inheritance.

the beneficiaries, and ensuring thefulfilment of benefits.
The key advantages of a familyfoundation for the founder include
securing the financial well-being offamily members, separating businessand family affairs, consolidating andsafeguarding assets, facilitating effective
management and growth of assets, andenabling strategic succession planningover multiple generations.
Founder and beneficiaries
The founder can be an individual who
has full legal capacity, which means,among other things, the right to alienate
their property. The founder is expected
to provide the family foundation with aminimum initial capital of EUR 25,000.
The circle of beneficiaries of a familyfoundation and the scope of their rights
should be determined by the founder.
The beneficiary can be: a natural person
or a non-governmental organisation
engaged in public benefit activities.
The beneficiary can also be the founder.

Magdalena Marciniak is a leading expert in Poland
according to the “Women in Tax” ranking, International
Tax Review (2024, 2023). A recognised expert intransfer pricing, she leads MDDP’s team of more than
50 people – one of the biggest and most acclaimed
transfer pricing teams in the Polish market. She
oversees projects on documenting transaction flows
in corporate groups and valuing goods and services
transactions among related entities.
+48 665 746 360
magdalena.marciniak@mddp.pl
irglobal.com/advisor/magdalena-marciniak

Business activity of a familyfoundation — is it possible?
A foundation can operate a business,
be an active entity, and generate
income. However, not every conceivable
activity is eligible for CIT exemption,
which is limited to activities specified
in the approved list. A foundation
may generate income from renting orproviding property, joining companies orpartnerships, participating in investment
funds, investing in foreign companies,
or investing in financial markets. A
foundation may also grant loans, but only
to companies in which it holds shares orto beneficiaries. It’s important to note thata Polish foundation cannot dispose ofproperty acquired with the sole intentionof subsequent disposal.
A few words about tax aspects
The family foundation is subject tocorporate income tax, with specific rules
governing taxation. As long as the familyfoundation generates income from theallowed business, it does not pay income
tax. The tax point arises when thefoundation transfers the benefits to thebeneficiary. In such a case, the market
value of the benefit is subject to a 15%
flat tax (no costs are deductible).
Benefits received by the founder andhis immediate family are not subject topersonal income tax. A 10% or 15% PIT
rate applies to other beneficiaries.
A Polish family foundation canbe dissolved. Those entitled to thefoundation’s assets are the founderor other persons he or she designates,or, in the event of his or her death,the heirs. And here, too, there will be
an income tax of 15%, paid by thefoundation. In this situation, however,the foundation is allowed to deduct fromthe CIT basis the hypothetical tax costs
attributable to assets contributed to thefoundation by the founder.
If the family foundation engages inbusiness activities not formally allowed,
the income generated is subject to a
25% CIT rate.
Don’t forget about transfer pricing
By definition, a family foundation is basedon relationships with related entities (orindividuals). For this reason, there is ahigh probability that transactions madebetween the foundation and, for example,
beneficiaries will be subject to transfer

About us...

pricing documentation and reporting
obligations.
However, transfer pricing needs
to be borne in mind for other reasons,
including the so-called hidden profits(distributions). If transactions between
related parties are established on
non-arm’s length conditions (e.g. in thecase of intangible services, loans, orleases), a 15% flat CIT must be paid by
the foundation on the difference to themarket value.

Non-tax benefits
Family foundation vs founder’sliabilities
A family foundation can serve many
purposes, including safeguarding theprivate wealth of individuals in the eventof economic failure. Limiting the familyfoundation’s liability for the founder’sobligations, can be an interesting wealthprotection tool.
As a general rule, a familyfoundation is liable for the founder’sliabilities only up to the value of theproperty contributed to it by the founder.
Moreover, the condition for accepting
the foundation’s liability for thefounder’s obligations is that they existed
before the foundation was established.
As already mentioned, theestablishment of a family foundation
allows for the separation of private andbusiness assets. Very often, Polishentrepreneurs are fully liable for theliabilities of their companies. This is
primarily due to the form of business.
Many entrepreneurs remain bothshareholders and board members oflimited liability companies, which canalso expose them to liability. This meansthat most entrepreneurs can be liable
for liabilities regardless of whether the

Magdalena Dymkowska has specialised in transfer
pricing since 2009, and received individual distinctions
as one of the best tax experts in the field of transfer
pricing in World Transfer Pricing 2023 and 2024.
Magdalena is head of Working Group no.7 with the TP
Forum in Poland. She is involved in projects related todesigning intra-group settlement models (including those
based on the profit split method) and defending themduring tax audits, preparing transfer pricing policies andfiling applications for Advance Pricing Agreements.
+48 501 108 261
magdalena.dymkowska@mddp.pl
irglobal.com/advisor/magdalena-dymkowska

assets are personal or company assets.
For this reason, the establishmentof a family foundation should beconsidered not only by those planningsuccession, but also by those runninga higher-risk business.

Conclusions
Despite family foundations being in force
for less than a year, we have witnessed
the registration of over 300, and theinterest continues to grow. This isunderstandable, as a foundation allows
investors to secure your family businessagainst unplanned division/hereditary
succession and provides financial
security for the next generation.

www.mddp.pl/en

MDDP is the leading independent Polish tax
advisory firm, with a presence in the market since2004. Our team consists of nearly 200 experts in
VAT, income taxes, transfer pricing, international
taxes, domestic taxes, tax and court proceedings,
and customs and excise duties. We carry out
innovative, groundbreaking tax cases and projects
in Poland. We actively contribute to consultationsof draft legislation; we are experts for theEuropean Commission, business organisations,and trade associations.
Our experts have written several books andarticles in professional publications. Our transfer
pricing team was founded in the same year as
MDDP itself. Since then, the team has grown to morethan 50 transfer pricing specialists who are readyto answer questions and resolve issues, ensuring
a personal approach to each client’s needs.

irglobal | 51

• WEALTH PRESERVATION

US – OKLAHOMA

Wealth, inflation,and the financial
climateEric Kunkel Founding Partner
Kaitlin Flinn Partner
CCK Strategies, PLLC

Q1
How are inflation and rising costsof living affecting private clientsin your jurisdiction?
In the United States, and the Stateof Oklahoma, inflation and the risingcosts of living are having a pronounced
impact on private clients, especiallyentrepreneurs, who represent essentiallyall our firm’s clients. The nature of these
economic pressures is two-fold, as theyaffect not only the personal finances ofbusiness owners but also the operational
aspects of their enterprises.
One of the direct consequences ofinflation is the increase in interest rates
as the Federal Reserve attempts to cool
the economy. For entrepreneurs, thistranslates into higher borrowing costs,
affecting everything from businessexpansion plans to everyday cash flow
management.
The inflationary environment
also impacts the cost of labour andmaterials. Entrepreneurs are facing adouble-edged sword where on one side,
the workforce demands higher wages
to keep up with the cost of living, andon the other, raw materials and goods
necessary for business operations are
becoming more expensive. The cost oflabour was already at recent high levels
in most industries as a result of changes
to the workforce post-pandemic.
With the cost of doing businessescalating, profits are being squeezed.
Entrepreneurs must now navigate thechallenging terrain of passing on costs
52 | irglobal

to consumers, who are also dealing
with their own financial constraints, orabsorbing the costs, which can erode
profit margins. The capital allocation
towards growth initiatives or investment
in new ventures must be re-evaluatedin the face of higher interest rates anduncertain economic forecasts.
The United States and the State of
Oklahoma are weathering the economic
conditions more favourably than most of
their larger international trade partners
due to United States Federal Reserve

Eric Kunkel is a Founding Partner of CCK Strategies.
He is a Certified Public Accountant, Certified in Financial
Forensics, Accredited in Business Valuation, and a
Certified Valuation Analyst. He is also an appointed
member of the Oklahoma District Export Council by the
U.S. Secretary of Commerce, and its Vice-Chair, Eric has
led CCK’s work with clients in export and international
services areas. CCK has received the following
recognition: 2023 Governor’s Award for Excellence inExporting; 2020 President’s “E” Star Award for Export
Service Recipient; 2017 U.S. SBA Exporter of the Year
State of Oklahoma & Region VI; 2016 President’s “E”
Award for Export Service Recipient; and 2016 Governor’sAward for Excellence in Exporting.
+1 (918) 491-4036
Eric@cckcpa.com
irglobal.com/advisor/eric-kunkel

Policy management and the strengthof the U.S. Dollar. A large portionof our firm’s clients are exporters,or have multinational operations,so the economic considerations ofother jurisdictions have a substantial
impact on their overall profitability andeconomic wellbeing.
Many individuals in the United States
have a substantial amount of their wealthin their home. Current mortgage interest
rates, which are much higher than they
have been for many years, have caused
people not to sell their current homes andreplace them with a disadvantageous
mortgage, which has drastically reduced
the inventory of homes on the market
and kept many people from being able
to buy a first home.
In the State of Oklahoma, the pricesof oil and natural gas are a doubleedged sword, due to the significant
footprint of the industry on the State, ashigh prices are good for business andthe related taxes good for Oklahoma
State revenue, but high prices represent
a negative for consumers.

Q2
What impact is changing financial
climate having on their projections
for the future: maintaining
lifestyle, retirement, wealthpreservation, etc?
The changing financial climate iscompelling high-net-worth individuals

to reassess their financial projections
concerning:• Retirement Planning: Inflationarypressures raise questions about
the adequacy of existing retirementsavings. High-net-worth individuals
may need to boost their retirement
contributions or adjust expectations
about their retirement lifestyle,particularly dependent on theirretirement time horizon.
• Wealth Preservation: Traditional
wealth preservation strategies arebeing challenged. Investments thatwere once considered safe may nolonger outpace inflation, leading toa potential decline in real wealthover time.
• As entrepreneurs, many of ourPrivate Clients have a substantial
part of their cash flow, wealth, andretirement strategy tied to their Private
Business Value, which in many cases
has been negatively impacted by thecurrent economic conditions.
• Immediate Wealth Transfer: With
the possibility of lower thresholds
for tax-exempt gifts occurring
after December 31, 2024, there
is an increased urgency to utilise
existing tax benefits for wealthpreservation. Wealthy clients may
have to consider alternative avenues
for wealth preservation that offer tax
advantages under the new rules.
• The unpredictability of U.S.
Federal Election results and related
Party control over Branches of
the Federal Government hascreated constant uncertainty for
U.S. Business including Federal
Regulation and effective tax rates
that impacts cash flow, wealth, andretirement planning for clients.

About us...

“Prices of oil andnatural gas area double-edged
sword.”
Kaitlin Flinn, Partner at CCK Strategies, holds a
Bachelor’s degree in Accounting from Oral Roberts
University and a Master’s in Taxation from the
University of Tulsa. Kaitlin is dedicated to empowering
entrepreneurs by providing the critical insights
necessary for their success, and guiding them with
tailor-made strategies for growth. Kaitlin offers her
extensive knowledge in entity formation and structure,
strategic tax planning, transfer pricing, R&D incentives,and multi-state compliance. Kaitlin is executive board
chair of the Tulsa Global Alliance.
+1 (918) 491-4036
Kaitlin@cckcpa.com
irglobal.com/advisor/kaitlin-flinn

Q3
What support & guidance areyou giving to high-net-worth
individuals as they manage
their future plans?
CCK Strategies’ services cater tohigh-net-worth individuals who aregrappling with the operational andstrategic challenges posed by thecurrent economic climate. Especially for
entrepreneurs, our support is nuanced
to address both their personal wealthmanagement and their business financial
health. We support our clients through:• Tax planning: Our tax team helps
clients optimise their tax positions
by employing strategies such as
income splitting, income deferral andcross-border strategies to leverage
lower tax brackets, opportunities toclarify income streams as long-term
investment in nature qualifying
for beneficial tax rate treatment,
strategies maximising retirement
contributions, strategically donating
to charities, and setting up trusts
for estate planning. CCK works
with entrepreneurs to structurebusinesses to minimise tax impact.
• Cash Flow Management: Throughour CFO outsourcing services, wegive special attention to managing
cash flow, which is crucial forbusiness sustainability. We employ
strategies that optimise cash
reserves and operational profitability,
control expenses, and forecast
future cash needs accurately.
• Inflation Mitigation Tactics:
Our CFOs work closely withentrepreneurs to develop andimplement tactics that can help
mitigate the impact of inflation on
their businesses. This includes
advising on pricing strategies, cost
reduction measures, and investment
in inflation-resistant assets.

cckcpa.com

CCK Strategies is a unique firm that connects
globally by working with companies headquarteredon four continents, with operations in over 25
countries. CCK export revenue from international
clients has increased approximately 350% over theperiod 2013 to 2023. This increase in internationalsales has been a principal driver in CCK employmentrise over the period to over 125 total staff, making
CCK one of the largest CPA firms in Oklahoma. The

continued growth brings expertise to clients with avariety of business needs in international businessconsulting and planning, IC-DISC implementation,
foreign tax credits, outbound and inbound structure
planning, worldwide tax minimisation planning, IRC
965 Transition Tax compliance, Global Intangible
Low-Taxed Income compliance, transfer pricing
analysis, ASC 740 (FAS 109/FIN 48) and IFRS/GAAP convergence.

Learn more about CCK Strategiesat www.cckcpa.com

irglobal | 53

• WEALTH PRESERVATIONPORTUGAL

The futureof private wealth
Florbela Pires Partner
Vera Figueiredo Partner
CLAREIRA

Q1
How are compliance and changing
taxation impacting private clients?
In terms of investments, we identify two
major regulatory trends. The first is thestrengthening of anti-money launderingand financing of terrorism (AML/FT)
rules, both at the European Union(EU) and at national level. Investors
shall expect to disclose their identity,
residence, professional activity andof course the origin of funds used ininvestments. These rules impact inall transactions: from the opening ofbank accounts to the acquisition ofreal estate or investing in funds.
One of the key elements of thesystem is the mandatory registration of
beneficial owners of legal entities. NonEuropean investors might be startled by
the requests of financial intermediaries
and fund managers (and sometimes
the bureaucracy) but shall know that
non-transparent and complex structures
will delay investments and bear the riskof targeting the eyes of authorities.
Another relevant trend is theinvestment in green activities, projects,
or securities. The market has wellunderstood the appetite of investors
for anything labelled as green. This
generated the risk of greenwashingand created difficulties of classification,comparability, transparency, andcontrol. Again, at EU level major steps
54 | irglobal

were taken. First, the approval of theTaxonomy Regulation which establishes
the background for the developmentof technical criteria for different sectors(through delegated regulations), in orderto classify investments as sustainable,
and more recently the approval of theGreen Bond Regulation with the EU
Green Bond standard.
With the European Green Bond
Standard, the EU is aiming to set a clear
gold standard for green bonds. The
labels EuGB or European Green Bond
will be reserved for entities that comply
with the provisions of the regulation,use of funds must be consistent withthe taxonomy rules and projects andinformation will be verified by external
reviewers registered with European
Securities and Markets Authority(ESMA). This new standard is consistent
with the green bond principles
proposed by the International CapitalMarket Association (ICMA). Anotherentity working in this field is the Climate
Bonds Initiative (CBI), which offers
its own Climate Bonds Standard andCertification.
Governments tend to increase
tax compliance obligations to tackle
tax avoidance and tax minimisation
schemes. However, too burdensome
tax compliance obligations can actuallylead to non-compliance, with taxpayers
willing to risk non-compliance, rather
than provide too much informationor commit to complex procedures orreports. A stable and reliable tax regime

Florbela Pires specialises in internal and cross borderfinancial transactions and contracts. She advises credit
institutions, financial companies and other clients on
regulation and the structuring of securities.
Florbela also advises private and public entities in reprivatisation proceedings and clients in insurance matters.
+35 1213 400 805
florbela@clareira.com
irglobal.com/advisor/florbela-pires

Vera Figueiredo is tax advisor of several groupof companies, domestic or multinational, financial
institutions, and private equities.
Vera has expertise in advising companies and groups
in restructuring operations, domestic or cross-border,
covering all phases from feasibility analysis to planningand implementing the operations. She also has expertisein advising clients in tax structuring its investments in
Portugal, namely in real estate and other sectors.
+35 1213 400 814
vera@clareira.com
irglobal.com/advisor/vera-figueiredo

MY ADVICE...
is one of the most relevant conditions
to attract (foreign) investment. Often thestability of the tax system is left behinddue to political arrangements. In thesesituations of change, it is of utmost
importance to anticipate any adverse
impact at the level of private clients.
When dealing with changes incompliance and in tax regimes/policies
private clients can be more impacted
than corporate clients, since to benefit
from more favourable tax regimes
private clients frequently redomicile
abroad or make important investment
decisions that impact their personal
life. If these benefits are taken awayor revoked, it is not only the financial
impact, but also the personal impactthat needs to be considered.

Use transparent and simple strategies
and structures to invest
Count on detailed KYC/Due Diligenceprocedures that may request
documentation and your presence to proof
identity and signature
Revise annually or bi-annually yourinvestment structure to prevent the
impact of any amendments to local laws/
international laws, as well as changes inpositions of the tax authorities and impact ofcourt decisions

Q2
What steps can they take toprotect their investments
for the long-term?
When structuring a long-term
investment, private investors should
consider all impacts of the three phasesof investment: the investment phase,the exploitation phase, and the exit
phase. Often, only the two first phases
are considered by private clients. It isof utmost relevance to structure anexit route from the beginning of theinvestment. If the route is structured itwill be easier to anticipate changes in
the legal and tax environment ahead.
More specifically, on what concerns

About us...

Closely follow recent trends ininternational/European taxation matters,such as OECD and European Union policies
When investing green beware ofgreenwashing and pick investments that
follow reliable criteria, are transparent in theuse of funds, disclose information and resort toindependent reviewers or certification
Seek assistance from a multidisciplinary
team of financial and tax advisors, andlawyers to help understand the legal framework
and anticipate changes in the financial, legal,
and tax environment

AML/FT compliance, investors shallexpect tighter controls on opaqueownership structures or the ones
resorting to tax heavens.
In terms of green investments,
clients shall look at activities, projects
or securities that follow strict rules oftransparency on the use of funds, that
periodically disclose objective, clear
and complete information, and that
resort to reliable systems of technicaland independent certification or review.

Q3
How are inflation and risingcosts of living affecting privateclients in your jurisdiction? How
can private clients seize the rightopportunities, whether it’s throughinvestment, real estate, etc?

As per official data published, inflation
rate is decreasing (4.3% in 2023, 7.8
in 2022) but it is not likely that thecosts of living will decrease in thenext year(s). Such raise of inflationand costs of living are affecting local
private clients more than foreigners.
Portugal is currently less attractive for
digital nomads, due to inflation andcosts associated with rents, but it is still
very attractive for other private clients.
There are still good opportunities forforeign private clients, namely on realestate and investment funds.
For example, investments for atleast 5 years of €500,000 in investment
funds or private equity funds authorisedin Portugal and which policy sets
out that at least 60% of the fund will
be invested in the capitalisation of
Portuguese companies, will qualify
for the Portuguese Golden Visa
programme, among other investment
possibilities.

clareira.com

CLAREIRA is a meeting point, debate, evolution
and a vision of the future.
Agility to get results: CLAREIRA combats
complexity with knowledge and a pragmatic
approach to advocacy.
We intend to act on the most important current
issues in business and public life. We know how
organisations live and function, both in the private
and public sectors.
We are experienced and connected. Throughour partnerships we are at the centre of thelargest transnational operations.
We work in a variety of industries andapproach issues from a variety of angles. Our
multidisciplinary understanding of law is an asset
to our public and private clients.
Dedicated to providing legal advice to public
and private entities from various sectors, Clareira
has the right scale.
The one that allows us a close relationshipwith our clients, the focus and care that legal
issues require.

irglobal | 55

• WEALTH PRESERVATION

US – NEVADAMY ADVICE...

Helping
wealthsurvive
Lou Robinson
CEO and President
Alliance Trust Company

Q1
How are inflation and rising costsof living affecting private clientsin your jurisdiction? What impact
is the changing financial climate
having on their projections for the
future?
Lou Robinson is responsible for the overall vision, strategy, and culture ofAlliance Trust Company of Nevada. He is proud to lead a firm that is culturally
different from peers, focused on serving others and solving problems forclients and their families.
Lou has significant experience providing tax planning and estateadministration to US and global clients. Lou is a graduate of the University of
Nevada, Reno, and he is a member of Society for Trust and Estate Practitioners(STEP) and holds the Trust and Estate Practitioner (TEP) designation.
+1 7752 984 302
lrobinson@alliancetrustcompany.com
irglobal.com/advisor/lou-robinson

56 | irglobal

To be honest, inflation and cost of living
have not had much impact on our highnet-worth clients or their projection of
spending in the future, however thesefactors have impacted their portfolio
management behaviours. Thereis a pivot back to fixed income, aninvestment which has not been in favour
since the last low interest rate cycle.
Should the market drop andnegatively impact net worth, then we
expect to see changes in spending.

Q2
Is shareholder activism driving
appetite for M&A? What is thebuy-side in your jurisdiction
looking for in terms of global
acquisition?
In the U.S., trends post-Covid show adecline in overall M&A activity and adecrease in the number of shareholder
activism campaigns focused on M&A.
In general, many M&A opportunities
are financed, and rising interest
rates are making the financing costs
relatively high. Predictably, manybuyers are waiting to see what interest
rates are going to look like in the next
13-14 months. There are still strong
Nevada buyers out there looking foropportunities to pick up companies ata bargain.

Q3
What guidance are you giving tohigh-net worth individuals as they
manage their future plans?
At Alliance Trust Company of Nevada,
we highly recommend that both U.S.
and global clients utilise Nevada trust
laws to set up a Nevada Dynasty trust
for the benefit of multiple generations.
Nevada trust laws allow for this powerfulestate planning tool with benefits that
include:• Minimisation or elimination ofincome taxes, estate taxes,
inheritance taxes, transfer taxes, andother future potential taxes.
• An excellent degree of asset
protection for beneficiaries for up to
365 years.
• Estate tax benefits for an extended
period.
• Accessibility, as both domestic andinternational families can establish
Dynasty Trusts.
The creator or grantor of the Dynasty
Trust has significant control over assets,
beneficiaries and rights.

Every conversation about wealth preservation
should start with planning. The best laid
intentions are sure to go awry without a solid
estate plan that checks all the following boxes:
Addresses legacy intentions, asset
protection, tax mitigation strategies.
Is implemented by a financial advisor awareof your goals and portfolio objectives.
Is periodically reviewed and updated,particularly after significant life events.
Is known and understood by your family/
heirs who are PREPARED TO INHERIT.
Our industry does a great job of preparing
assets for families, but we need to ask ourclients how prepared the family is for the assets.
Most of us have seen the statistics that there is$68 trillion in multigenerational wealth expected
to transfer in the next 25 years, and that 70%

of wealth won’t survive a second generation.
Additionally, studies have shown that 1 in 3
families have done nothing to prepare the next
generation to receive the wealth.
We can’t underscore enough theimportance of communication and preparing
heirs to inherit wealth. We absolutely encourage
family meetings and conversations about
estate planning (e.g. philanthropic goals, family
values, fair vs. equal, disposition of assets suchas real estate, retirement goals) and get anunderstanding of the financial acumen of family
members.
Many clients are reluctant to discuss money
matters due to privacy concerns or concernsthat heirs aren’t mature enough. We stand firmin our belief that openness and communication
lead to solving concerns and in identifying
potential issues to address. It is much better tohave these conversations up front when times
are good, rather than during one of the moststressful events of an heir’s life, the death of a
loved one.

“Many clientsare reluctant todiscuss money
matters due toprivacy concerns
or concernsthat heirs aren’tmature enough.”
About us...

alliancetrustcompany.com

Alliance Trust Company of Nevada is an independent
trust company. We take time to know our clients and arecommitted to delivering the very best trust administrative
services to every client, every time.
The seasoned professionals at Alliance pride
themselves as subject matter experts and we recruit thebest and brightest in the industry. We have continued to
grow our client base due to our long-standing relationships
around the world, our ability to deliver on broad trustee
services and our client-focused culture.

irglobal | 57

FEATURING...

Globalmobility
Geopolitical events are vastly impacting global
mobility. Climate concerns and government policy
are influencing global migration and employment
relocation more than ever before.
Our thought leaders discuss the impact of thesefactors within their respective jurisdictions, offeringvaluable insights and practical recommendations
on how to stay ahead of the curve.
Global uncertainty prompts individuals to seek
safety, security, and opportunities for growth.

58 | irglobal

Thomas Paoletti describes how immigration
patterns have been influenced in the UAE, with
the nation’s welcoming policies attracting skilled
professionals from conflict and non-conflictzones alike. This contrasts emigration trends in
Portugal, where economic downturns resulting
from sanctions and trade barriers have prompted
Portuguese citizens to seek opportunities
abroad, according to Rui Esperança and InêsLeitão de Oliveir. This highlights the need forongoing attention to legal frameworks
governing emigration.
Furthermore, climate anxieties haveled countries like Malta to create climate
policies and strategies, explains Chris
Armstrong. Malta’s approach includes
a 30-year strategy aimed at achieving acarbon-neutral economy, with initiatives
such as promoting low-emission vehicles
and enhancing sustainable transport systems.

P62

ENGLANDPaul Beare
Paul Beare Ltd

P66

MALTA
Dunstan Magro
WDM International

P66

MALTA
Erika Baldacchino
WDM International

P68

MAURITIUS
Vimal Damry
Premier Financial Services Limited

P70

MEXICO
Edmundo Escobar
Escobar y Gorostieta, S.C Abogados

P72

PORTUGALInês Leitão de Oliveira
Bind

P72

PORTUGAL
Rui Esperança
Bind

P74

GERMANY
Dr. Gerd Müller-Volbehr
Müller-Volbehr Hitzer Rechtsanwälte

P76

SWITZERLAND
Monika Naef
DUFOUR – Advokatur

P78

UAE
Thomas Paoletti
Paoletti Legal Consultants LLP

P80

ANGUILLA
Nina Rodriguez
Webster LP

P82

MALTA
Chris Armstrong
Papilio Services Limited

irglobal | 59

• GLOBAL MOBILITY

ENGLAND“Since the UKformally leftthe EU in 2020,
the issue of
immigration –both unskilled
and skilled – hasbecome a major
political issue.”Paul Beare,
Paul Beare Ltd

Moving up
Paul Beare
FounderPaul Beare Ltd

Global mobility rules havebecome more complex inrecent years, particularly in the
UK. But with the right advice, you canensure you stay within the guidelines.
The rules and regulations
surrounding work mobility in the UK
can – to the untrained eye – appear
byzantine. They are also subject tochange: since the UK formally left the
EU in 2020, the issue of immigration– both unskilled and skilled – hasbecome a major political issue. As aresult, the UK government has tended
to make changes to the rules to suit theprevailing direction of public opinion.

The bigger picture
The wider geopolitical backdrop has
had an impact on UK policy in this area,with the UK government aiming to boost
inward investment but at the sametime, clampdown on the unrestrictedmovement of lower-paid workers. With
that in mind, PM Rishi Sunak recently
announced some important changes
to the rules around eligibility for thoselooking to come to the UK to work or
set up a business.
Migrants coming to the UK on the
Skilled Worker route currently face ageneral threshold (assuming they don’t
have an exemption) of £26,200, andBrits or settled people who want tolive in the UK with their partners must60 | irglobal

Networking
opportunities
at an IR Global
conference

currently earn £18,600.
However, among the measures
set to be introduced in spring 2024
is an increase in the ‘general’ salarythreshold for both long-term work visas
and British or settled people applying
to bring their partners to the UK. Bothwill increase to £38,700, higher than the
median salary for full-time employees(£35,000), although for workers there
are many exemptions.
Clearly, the major change regarding
Sponsorship Licences is the increase
to the threshold salary for a Skilled
Worker. This was announced on the 4th
December 2023 when the UK Home
Secretary confirmed the thresholdwould rise to £38,700.
However, workers on the Health andSocial Care Visa route will be exempt
from this new salary threshold. The UK
Home Secretary also confirmed, more
recently, that there will be transitional
provisions to be set out in due course to
stagger how and when this new salarythreshold will be introduced.
However, it has been confirmedthat this change to the salary threshold
will not be retrospective. So, any
migrants who have a visa under thecurrent salary thresholds or those whocomplete their application before thesalary thresholds are implemented, will
not be required to increase their salary
to match the new policies.
This will have some impacts for
those either seeking to relocate to takeup a job, or those running a businessPaul Beare has been immersed in the corporate services
sector since he was 15 and is still relatively young to beheading up such a business. His vast experience allows him
to act as a trusted advisor to clients, taking care of a rangeof services, from opening a bank account to setting up a
payroll system.
He developed his experience of international
accountancy services working for his father’s business.
Having started and grown his own firm in London and thesurrounding area, he has since expanded to Australia and
New Zealand. He is currently a resident of Auckland but
remains a frequent visitor to the UK and still has strong
family and personal ties to the UK and has a home in
London.
He describes himself as passionate and flamboyant, andcommitted to helping his clients no matter what they need.
+44 2071 838 786
paul@paulbeare.com
irglobal.com/advisor/paul-beare

irglobal | 61

• GLOBAL MOBILITY

ENGLAND

About us...

MY ADVICE...
Give yourself enough time: the regime
governing working mobility moves
slowly. Anyone looking to secure the correct
Visa should allow for between three and fourmonths.
Prepare to pay fees: the UK government
is not shy about collecting its take fromthe visa process. While the headline cost may
appear low, there may be hidden fees to pay
along the way.

and planning on bringing individuals
over to fill roles. And while the new
regime hasn’t necessarily made it moredifficult to obtain the necessary visas,
the changes to the salary thresholdchange might.
Certainly for companies looking toemploy people on salaries of between£25,000 and £35,000 (a large cohort for
growing businesses), they would now
see those applications rejected, meaning
they’d either have to increase the salaryor find another way to get to the UK.
These changes made to thepolicies are designed to discourage
UK Businesses from employing skilledindividuals from overseas rather than
recruiting from within the UK. It follows
the Government’s initiative to decrease
net migration to the UK. It may seemslightly counter-productive after leaving
the EU and claiming the UK is open forbusiness and looking for investment
from overseas. Certainly, some would
argue more overseas businesses may
be discouraged from setting up a UK
subsidiary if they are unable to employ
the key individuals they require toestablish their business in the UK.

A wider view
There are other rules coming intoplay that directly affect those startingor running their own businesses. For
instance, from 31st January 2024,
the current prohibition on visitors
undertaking intra-corporate activities
directly with clients will be removed,
provided the client-facing activity
is incidental to the visitor’s
employment abroad and
62 | irglobal

Plan long-term: given the time and cost
involved, think carefully about whether
bringing in employees from overseas is theright way to go. If you have a short-term issue
to solve, employing someone already in the
country may be easierGet the right help: This can be an
exhausting and time-consuming process,so it can definitely save time and aggravation to
get expert help along the way.

does not amount to the offshoring ofa project or service to their overseas
employer. This will now be included in
the permitted activities for a Standard
Visitor.
In addition, visitors will now be
permitted to work remotely whilst they
are in the UK, but remote working mustnot be the primary purpose of their visit
to the UK. Speakers at conferences
will be permitted to be paid (this will be
included in the list of Permitted Paid
Engagements (PPE)).

“In somecases, businessfounders may
find it useful toconsider applying
for an Innovator
Founder visa.”It’s worth noting that the provisions of
the PPE Visitor route will be moved into
the Standard Visitor route (so all visitors
will be able to undertake PPE without
the need for a different type of visa).
However, visitors intending to undertake
PPE must still have arranged their PPE
activity prior to travel to the UK, and thismust be undertaken within 30 days of
their arrival in the UK as a Visitor.

Special cases
In some cases, business founders may
find it useful to consider applying for an
Innovator Founder visa. This is a special
visa that, while a little more complicatedto obtain, can open up a path if you
want to set up and run an innovative
business in the UK. To qualify for thevisa, your business must be different
from anything else on the market, must
be endorsed by an approved body(also known as an endorsing body),
and you must meet the other eligibility
requirements.
The authorities will expect applicants
to have a business plan, which isscrutinised by one of the endorsing
institutions listed and approved by
the Home Office, which will act as asemi-sponsor of your business plan, if
you convince this institution that yourbusiness plan is valid. Under the termsof the visa, founders can stay in the UK
for six months and complete businessactivities as well.

Paul and his team support the needs of overseas
companies setting up and operating in the UK.
One element is paramount with every client – they
all need support and expert guidance. Paul and his
team advise clients on the appropriate legal entity,
payroll, VAT, banking and company secretarial
services. Clients range from publicly-quoted
companies through to owner-managed businesses.
Paul travels frequently to Australia, New Zealandand the US, and has been heavily involved in IR
Global for nine years. He uses the support network
for clients when they are focusing on expanding their
UK company. Clients will use this as a foundation
for further expansion into Europe and beyond. Paul
Beare has particular expertise in helping clientsdecide on the best structures to use when setting
up and growing a business in the UK — for instance,
guiding clients towards the right choice between
using a UK branch or a UK subsidiary.
paulbeare.com“We build a
relationshipwith our clients,
providing a pointof contact, whomthey know well.
Whom they trust.”
irglobal | 63

• GLOBAL MOBILITY

MALTA

MobilefuturesDunstan Magro Managing Partner
Erika Baldacchino Tax Manager
WDM International

Q1
How are global geopoliticalevents affecting mobility in yourjurisdiction?
Over the past few years, global politicaland economic developments havetaken centre stage. Going back to
COVID-19, passing through the war
in Ukraine right up to the Middle East
crisis, and ending with the tackling ofclimate change and inflation, one cansay that many countries, including
Malta, continue to face the perfectstorm of disruptive forces.
Although Malta’s growing economy
still outpaces a number of fellow EU
member states, the small island nation
still faces difficult choices in a numberof critical areas, mainly:• tackling inflation• avoiding any widening of inequality
gaps• the panning out of an inclusive andsustainable growth path• balancing energy demands withdecarbonisation pledges• an efficient and effective
management of resources.
Historically Malta has always
boasted a resilient economy and
64 | irglobal

despite the seemingly never-ending
disruptions, current forecasts continue
to show that over the next few years, thecountry’s economic growth is likely tooutperform that of the Euro area. Thus
there is still a strong labour demandacross all sectors, and this keeps
pushing for the maintenance of a highpace of employment and eventually
population growth. In order to curb any
abuse arising from the influx of foreign
workers to Malta, as of April 1st 2024,
the Government of Malta is introducing
rigorous new regulations to target
ethical employment. The regulations
have been drafted to re-emphasise
the importance of maintaining highstandards within the industry.
Rated as one of the safest places
to live, with excellent healthcare,educational services and a familyfriendly environment, Malta is still
considered a desirable destination of
choice by many HNWIs. Complemented
by the carefully drafted residence andcitizenship programmes, particularly
the Malta Residence Programme,
the Global Residence Programme,
The Residence Programme, and the
Citizenship for Exceptional Services
by Direct Investment, amongst others,
such individuals are guaranteed thenecessary peace of mind should
they wish to create a new reality away

Erika Baldacchino is an up-and-coming tax manager
at WDM International, specialising in VAT. With a keeneye for detail and a passion for helping businesses
navigate complex tax regulations, Erika is making asignificant impact in the field.
Erika started her journey in taxation in 2015
following seven years providing accountancy services
to the firm’s clients. Erika has developed a deep
understanding of tax laws and regulations, particularly
in VAT and international tax, whilst also acquiringexpertise in residency and migration.
+356 2123 2096
ebaldacchino@wdm.com.mt
irglobal.com/advisor/erika-mizzi

Dunstan Magro is the Managing Partner of WDM
International and is a Masters graduate of the Universityof Malta. During his early career, Dunstan carried out
numerous audits across different industries. Over the past
25 years, he has also advised many local and international
clients on tax, corporate and business advisory matters,
whilst lecturing on various tax and regulatory compliance
topics. He is an active committee member of the Malta
Institute of Accountants, a member of the Malta Institute of
Taxation, and a member of the Malta Institute of Financial
Services Practitioners.
+ 35 6212 320 96
dmagro@wdm.com.mt
irglobal.com/advisor/dunstan-magro“ Historically Malta
has always boasted
a resilient economy,
despite the seemingly
never-ending disruptions.”
Dunstan Magro,
WDM International

irglobal | 65• GLOBAL MOBILITY

from headaches caused by the global
political and economic developments
referred to above.
Last but not least, Malta’s pitch as a
hub for financial services, aviation, digital
gaming, advanced manufacturing, life
sciences, IT and blockchain services
does not seem to have been negatively
impacted by such events.

Q2
Climate concerns are increasingly
becoming a decision-making factor
in global migration – how is this
impacting your jurisdiction?
Malta has been recognised by theInternational Centre for Climate Mobility
as a climate mobility champion leader
during an activity organised during
COP28 in December 2023. Malta’s workin the climate change and its impact on
small islands have received widespreadpraise. Eurostat statistics also show that
Malta is the EU country with the lowest
emissions per working person.
However, these accolades, although
indeed positive and welcome, cannot
hide the fact that Malta is located rightin the centre of the Mediterranean,a region which has been particularly
vulnerable to the impacts of climatechange. Over recent years, theMediterranean has seen heatwaves,wildfires, and storms wreaking havoc
throughout the region. This has also
prompted Med 9 country leaders torecognise the disproportionate impactof the climate crisis in the region.
Yet so far, Malta’s climate continues
to be made up of mild, rainy winters anddry, hot summers. The mean monthly

About us...

MY ADVICE...
Each global mobility strategy looks different. Thisis because there is no single template which canbe applied, even more so when considering themultiple effects of changes to the geopoliticallandscape. So whether it is a company relocating
its employees, foreign workers seeking to be
employed in a different jurisdiction, or HNWIs
relocating to a new country, it is important that
one invests both time and resources before
considering such a move.
With respect to my recommendations andgeneral tips on the subject matter, it is importantthat one:temperature for the summer season was
35°C over the past century. The hottest
month is July during which, at times,
temperatures tend to exceed this value
for short periods during the month. On
the contrary, temperatures have neverreached freezing point in Malta, with thelowest monthly average temperature forthe past century being 11°C, in the wintermonths (January and February). There
were instances when air temperatures
dropped below 11°C, but only for shortperiods. Although exceptional extremesof 1.4°C and 43.8°C have been recorded
in Malta, on average, the climate is stillpleasant, with rainfall precipitation being
the highest between November andFebruary and the average number ofdaily sunshine hours being eight.
From a climate perspective,
therefore, Malta still provides thenecessary stability required by global
migrants when choosing a destination.
This is supported by the ever-increasing
number of tourists visiting the island,and by the number of foreigners
deciding to relocate and settle in Malta.

“Malta has been recognised by theInternational Centre for Climate Mobility
as a climate mobility champion leader
during an activity organised during
COP28 in December 2023.”
66 | irglobal

MALTA

clarifies and defines the relocation
process
considers how to overcome
cultural differences
reviews local laws, particularly thoserelating to employment and taxation,
so as to better understand your obligations
and compliance requirements
prioritises effective wellbeing when
making the moveseeks professional advice to help navigate
the complex matters arising from global
mobility

Q3
How is government policy
influencing mobility in yourjurisdiction – particularly inregard to employment relocation?
Malta’s 2023 attractiveness survey
anticipates that over the next 5 years,
investors believe that Malta’s prominent
business sectors will be tourism andleisure, digital gaming and artificial
intelligence, a trend confirmed inprevious attractiveness surveys. To thisend, Malta’s migration policy for thisdecade has been reshaped to cater
more for high-level and skilled workers,
thus alleviating the need for specificskills in the Maltese labour market whilst
consolidating the vision for Malta’s
economic growth model without putting
excessive pressure on the country’s
resources, infrastructure and primary
health care systems.
In addition to this, during December
2022, Malta has also unveiled its
Sustainable Development Strategy for2050. Taking into account the lessons
learnt from the 25% increase in the
country’s population since 2013, mainly
through the influx of foreign workers and
HNWIs settling in, and the UN’s Global
Goals and 2030 Agenda for Sustainable
Development, Malta’s strategy will befocusing its efforts towards ensuringthat social cohesion, the protection of
the environment, and economic growthFounded in 1994, WDM International is a Maltabased multidisciplinary firm offering audit, tax, legal,
corporate, compliance, outsourcing, and businessadvisory services.
WDM International strives to create value throughfocused excellence and constantly aims to continue
growing, not only organically, but even by attracting
new clients who could benefit from our approach.
The Firm prides itself on a wide client portfolio
over a range of industries, including financial
services, manufacturing, leisure and entertainment,
food and beverage, aviation and maritime, retail,film, construction, and more. WDM International
also assists various business entrepreneurs tointernationalise their business and provides advice
to high-net-worth individuals on immigration,
residence, and relocation.
WDM International delivers a tailor-made service
throughout, turning our clients’ business dreams
into reality. We have the know-how and practicalexperience to guide clients throughout, whilst taking
advantage of all the benefits Malta has to offer.
wdm.com.mt

move forward in a coherent and mutually
beneficial way. The 5 strategic goals
identified comprise:• transitioning towards a climateneutral green and blue economy• preservation of sustainable urban
development and cultural heritage• ensuring healthy lives and well-being
for all• acceleration of digitaltransformation, smart mobility andconnectivity• achieving social fairness andprosperity for all

The principles of sustainable
development encapsulated in Malta’s
strategy document are wide andoverarching, and incorporate all theelements that make up the country’s
environment, economy, and society
as a whole. Achieving economic
growth and developing a healthy andcohesive society while safeguarding
the environment is, however, no easytask and requires a strong concerted

commitment from everyone.
Both Malta’s Sustainability
Development Strategy and the updated
migration policy play a crucial part inhaving every sector and actor actively
involved throughout the entire process
to transform the Maltese Islands into
a country that can meet current andfuture needs and one that is capable ofsuccessfully overcoming any emerging
challenges and threats.
irglobal | 67

• GLOBAL MOBILITY

MAURITIUS

MobileMauritius
Vimal Damry
Managing Director
Premier Financial Services Limited

Q1
How are global geopoliticalevents affecting mobility inyour jurisdiction?

Vimal Druvnath Damry BA (Hons.), DIP (ITM), LLB (Hons.), LLM (Business
Law), TEP. Vimal is the Managing Director of Premier Financial Services
Limited, he is a senior trust and offshore practitioner, a Law graduate fromthe University of London, a Graduate in Economics from Sri Ram Collegeof Commerce (SRCC) - University of Delhi, holds a Masters in Business
Law (De Montford Leicester University), Postgraduate in International TrustManagement from Society of Trust and Estate Practitioners (STEP) andCentral Law Training UK, Member of STEP, Member of International Tax
Practitioners Association (ITPA) and other professional bodies.
+23 0245 670 3
vimal@premier.mu
irglobal.com/advisor/vimal-damry

68 | irglobal

Mauritius as a destination has been
always very popular for tourism. We
have as many tourists as the numberof inhabitants. We are a very open
country with visas on arrival for manynationals whether coming as tourists
or on business. We are ideally placed
between Africa and Asia.
There is a lot happening on the
global geopolitical front, with a mixtureof different events such as politicalinstability, or changes in government
policies, like some neighbour countries
pushing some of their residents tomigrate elsewhere or looking for asecond home. Regionally, we have
many southern and eastern Africans
who have taken residency in Mauritius.
We have also had the COVID-19
outbreak, which has made people
go back to their home country, whilst
others have taken residency here, so
there is ‘two-way traffic’.
It is quite interesting to see how
people reacted differently to this crisis.
This pandemic has created a lot of

MY ADVICE...
The whole world is now a global village.
We have seen how an event in China(Covid-19) got spread to the whole world
within weeks. However, the global village also
has its benefits, and Mauritius has certainly
benefited as well. Our immigration rules arevery interesting and flexible. The Government
has done a lot to encourage immigration.
Entrepreneurs looking to set up their businessare very much encouraged to set up in
Mauritius. With an investment of only USD
50,000, these entrepreneurs get occupation
permits for up to 10 years, together with theirdependent families. This measure has attracted
a lot of entrepreneurs to relocate to Mauritius.
We have very good international educational
systems based on the English or Frenchmodel which does not disrupt the education

distortions with unemployment andinflation being the major factors thatmake people migrate. Climatic changes
have affected many small islands andMauritius has not been spared. We havecyclones and floods every year which isanother factor people consider.
Trade policies have createdmigration such as from India and Africa.
We also have the Russia-Ukraine war
which has also seen Russians andUkrainians migrating with families,
including to Mauritius.
Needless to say, there are also
people moving out of Mauritius todestinations such as Canada, Australia,
and Europe. That said, Mauritius is avery open country and many who hademigrated have in fact returned aftera few years abroad. It’s a constantsituation of people moving in and out,
which is quite an interesting mobility
phenomenon.

Q2
Climate concerns are increasingly
becoming a decision-making factor
in global migration – how is this
impacting your jurisdiction?
It is a common fact, that the whole worldis impacted by climate change. We cansee how countries are regularly affectedby tsunamis, cyclones, drought, andof children relocating.
Mauritius also gives opportunities toforeign students who have studied in a tertiary
education institution in the country to work
here. They are eligible for a maximum of 3 years
occupation permits.
Foreigners are also now allowed to buy local
properties (something which was very restricted
before). Mauritius is well placed to become an
option for foreigners to relocate to Mauritius
on a long-term basis. We have everything here
to encourage them. We are a robust financial
centre with a very good banking and tax
system. We have a very busy airport with daily
connections to Europe, Asia and Africa.
These are what makes Mauritius a star and keyof the Indian Ocean and a highly recommended
country for relocation.

floods in different parts of the world.
The effects of these can no longer
be underestimated. These climate
concerns bring with it migration as
people move to safer places. Mauritius
has accepted migrants from countries
who have emigrated due to climate
concerns. Our travel and visa policies
are, in fact, very good, with no major
barriers to such travellers.
That said, we do also have our
cyclones and floods every year, but
we are used to it. These are not major
factors for Mauritians to emigrateelsewhere. However, we can say that in
Mauritius we have not seen immigrants
settling here due to climate change
concerns.

Q3
How is government policy
influencing mobility in yourjurisdiction – particularly inregard to employment relocation?
Mauritius has always innovated in
issuing work and residence permits forforeigners looking for employment on
the island. In the past decade, there
has been a relaxation of the criteria for
employment eligibility. At present, wehave what we call ‘Occupation Permits’which are residence and work permits
issued to foreign employees. Foreigners
can take jobs here and the employers
will apply for these permits. The
application is straightforward, and a lot
has been done to make it a hassle-freeand streamlined exercise.
Foreign employees need to havethe necessary qualifications andexperience, commensurate with thejobs they are applying for. There is alsoa minimum salary for which employers
can employ a foreigner which has been
lowered over the years. These permits
are not only issued to the employee but
also to his dependent family members
including parents.
A spouse is also eligible to apply fora work permit and get employed. Many
families have relocated to Mauritius asa result. The occupation permits can befor up to 10 years which is renewable. A
lot has been done to encourage foreign
employment and relocation to Mauritius.

“Climatic changes have affected many small
islands and Mauritius has not been spared.”
About us...

premier.mu

Premier Financial Services Limited is a fast-growing
licensed and regulated Management Company/Trust
Company by the Mauritius Financial Services Commission
servicing private clients, listed and private companies. Its
group companies and associates are based in Mauritius,
Singapore, UK, and Seychelles. Premier’s Promoters andDirectors have been in financial services for more than adecade and have managed companies and trusts holding
assets of more than USD1 billion in aggregate.

irglobal | 69

• GLOBAL MOBILITY

MEXICO

Uniquely
strategic Mexico
Edmundo Escobar
Partner
Escobar y Gorostieta, S.C AbogadosT

he complexity of global
geopolitical events significantly
influences mobility patterns in
Mexico, especially in light of the intricate
migration issues with the United States.
Various factors such as changing
economic policies, escalating tradetensions, and broader geopolitical shifts
critically impact not only trade andeconomic activities within Mexico but
also deeply influence human migration
patterns.
Mexico’s unique and strategic
position as a crucial transit anddestination country for migrants from
Latin American countries, who are aiming
to reach the U.S., places Mexico in achallenging and complex scenario. Thissituation necessitates a careful navigation
between maintaining diplomatic relations,addressing humanitarian concerns,
and managing pressures from the U.S.
to implement stricter controls on illegal
migration. These dynamics are further
complicated by economic instability inregions affected by global trade tensions,which can drive individuals to migrate
in search of better opportunities, with
Mexico serving as both a destination anda transit country.
Moreover, the increasing trend ofnearshoring, which is driven by thesegeopolitical shifts, presents Mexico withsignificant economic opportunities.
However, it also poses challenges inmanaging the dynamics of migration
as it potentially makes Mexico an
attractive destination for migrants fromvarious regions seeking employment
opportunities. Consequently, Mexico
is tasked with the delicate balance
70 | irglobalof capitalising on economic growth
opportunities through nearshoring,
while simultaneously addressing thecomplex and multifaceted challenges
associated with migration in a mannerthat is both humane and effective.

Climate Concerns Impacting Mexico
The pressing issue of climate change isincreasingly becoming a significant factor
in global migration decisions, and its
impact on Mexico is particularly notable.
Mexico is confronted with its own unique
set of environmental challenges, suchas severe water shortages, especiallyin its northern states, which are crucial
industrial and agricultural centres.

These environmental issues areaggravating living conditions and could
potentially lead to the displacement ofcommunities, thereby triggering internalmigration within Mexico. Moreover,the exacerbation of extreme weather
events due to climate change, such as
intensified hurricanes and prolonged
droughts, threatens to disrupt
agricultural productivity, further straining
Mexico’s rural economies. This may
result in increased migration towards
urban areas or even across international
borders in search of better livelihood
opportunities. On a global scale, Mexico
is increasingly becoming a refuge forindividuals from Latin America and

Edmundo Escobar has over 35 years of experience inlabour and employment including human capital management,
including selection, recruitment, and personnel administration,
this professional holds a Law degree from the National
Autonomous University of Mexico, with specialised studies
in Civil Law, Administrative Law, and Taxation from thePanamerican University. He also pursued Public Accounting
at the Autonomous Technological Institute of Mexico andcompleted a Diploma in Management for Lawyers at Yale
University, USA. Currently managing senior partner at
Escobar y Gorostieta, S., active member in the Mexican Bar
Association (BMA), the International Bar Association (IBA), hasrepresent the World Employment Confederation (WEC) at theInternational Labour Organization (ILO). Additionally, was Vice
President of the Latin American Employment Confederation(CLEM) and was professor at the National Autonomous
University of Mexico (UNAM) Law School for over a decade.
+55 4196 400 0
e.escobar@eyg.com.mx
irglobal.com/advisor/edmundo-escobar

About us...
the Caribbean who are fleeing thedevastating impacts of climate-induced
disasters in their home countries. This
trend is likely to intensify as climaterelated disasters become more frequentand severe, placing additional burdens
on Mexico’s already strained resources
and infrastructure.
Given this scenario, it is imperativefor Mexico to undertake a strategic shift
in its policy framework to effectively
integrate considerations of climate
resilience with migration management.
This approach is essential to ensuresustainable development and tosafeguard human security in the faceof the escalating challenges posed byclimate change and migration.

Government Policy and
Employment Mobility in Mexico
The Mexican government’s decree,published on June 5, 2023, aimed atpromoting investment in the Isthmus of
Tehuantepec, is having a pronounced
effect on employment mobility within
the nation. By offering substantial
tax incentives to key sectors such as
electronics, automotive, clean energies,
and medical devices, the government
intends to attract new investments
and stimulate the development of
manufacturing plants within the region.
This strategic initiative is expected
to drive significant economic growth,
create numerous job opportunities,
and enhance the competitiveness andefficiency of operations for taxpayers.
The targeted focus on these highpotential sectors, coupled with theextensive tax benefits delineated in thedecree, including a 100% income tax
credit and immediate deductions forinvestments in new fixed assets, is set totransform the Isthmus of Tehuantepec
into a vibrant hub for manufacturing
and industrial activities. This aligns
with the broader objectives outlined in
the National Development Plan and ispivotal in directing employment mobility
towards these designated development
poles, thereby fostering regional
economic development.
The operationalisation of theInteroceanic Train, a significant
infrastructure project by the
Mexican government, enhances theattractiveness of these investments
by providing improved logistics andeyg.com.mx

Escobar y Gorostieta, S.C Abogados isa highly specialised legal firm in labour law,offering our clients:• Preventive counselling• Corrective counselling• Litigation
This is based on over 30 years of experience,
primarily serving the business sector,
governmental entities, or officials. Our teamof lawyers operates under the premise ofresolving conflicts by adhering to the bestpractices and recommendations for our clients.

connectivity across the Isthmus,
further bolstering Mexico’s position
as a strategic nearshoring hub.
This development, along with acomprehensive assessment oflocal infrastructure, energy supply,and labour training capabilities, isessential for ensuring investments are
well-positioned to leverage Mexico’s
nearshoring potential and achieve
long-term sustainability.
Additionally, the subsequent act
released on October 11, 2023, which
extends tax incentives to key exporting
industries, further emphasises thegovernment’s commitment to leveraging
nearshoring as a strategic means
to foster economic growth. These
policy measures, while instrumental
in enhancing Mexico’s position in the
global marketplace, must be judiciously
evaluated against potential challenges
such as implications for tax revenue
and the need for comprehensive
infrastructural development. This
underscores the necessity for a targeted
approach to reinforce Mexico’s export
capabilities and to ensure a sustainableeconomic trajectory in the face of global
manufacturing shifts and the imperative
for resilient supply chains.

General Advice for Foreign
Investors in Mexico
For foreign investors aiming to relocate
or expand their operations in Mexico,the current policy framework offers
significant opportunities, particularly
in manufacturing sectors earmarked
for national economic growth andnearshoring initiatives.
Recent legislative reforms, such as
the decrees to foster investment in the
Isthmus of Tehuantepec and within key

Our expertise includes:• Attention to and monitoring of lawsuits• Counselling on labour relations

management• Consultation for the implementationof hiring schemes• Risk analysis• Training for legal or human resources
departments• Corporate restructuring due to mergers
or acquisitions

exporting industries, have established
an inviting landscape for foreign
investment. It’s crucial for investors
to align their investment strategies
with government-prioritised sectors
like electronics, automotive, clean
energies, and medical devices, which
are bolstered by strong investment
support and attractive tax incentives.
To fully leverage these incentives,
investors must navigate the regulatory
landscape with precision and aligntheir investments with the designateddevelopment areas and sectors outlinedin these new policies.
Additionally, it’s vital to address
broader infrastructural and logisticalchallenges that could influence
operations, including local infrastructure
adequacy, energy supply, and skilled
labour availability. Confronting thesechallenges is essential for the long-termsustainability and success of investments
in Mexico. Furthermore, in the context ofthe competitive strengths of the Mexican
economy and potential hurdles, investors
should adopt a holistic and informed
approach to their investment decisions.
This approach should encompass
understanding the benefits provided
by the United States-Mexico-Canada
Agreement (USMCA), especiallyregarding labour issues, which enhancelabour rights protections and could
influence supply chain dynamics andlabour cost considerations in Mexico.
Incorporating insights into nearshoring
trends, supply chain resilience, and thebroader economic and political climate
in Mexico will empower investors tointegrate into the local economy, foster
sustainable development, and secure
enduring success in their ventures more
effectively.
irglobal | 71

• GLOBAL MOBILITYPORTUGAL

Climate, Immigrationand Labour in Portugal
Rui Esperança, PartnerInês Leitão de Oliveira, Associate Lawyer
Bind

Q1
How are global geopoliticalevents affecting mobility in yourjurisdiction?
In this regard, considering the current
situation in Portugal, global geopoliticalevents have significantly influenced
mobility within the country’s jurisdiction,
impacting both immigration andemigration patterns.
Firstly, the ongoing global
geopolitical tensions, such as conflicts
and economic instability in various
regions, have led to an increase inasylum seekers and refugees seeking
safety in Portugal. The country, known
for its relatively welcoming stanceon immigration, has seen a rise inapplications for asylum, influenced by
global crises. This increase had legal
implications, requiring the Portuguese
government to adopt asylum andrefugee policies with immediate effect,
including the processing of applications,
integration measures and guarantees
of compliance with international humanrights legislation. This also meant anincrease in pressure on the government
services responsible for processing
applications, which had already been felt
since the pandemic, and which led to thePortuguese government having to act toextend visas and authorisations alreadyissued, given the services’ inability tocope with applications.
The geopolitical landscape has
72 | irglobal

also indirectly affected emigration from
Portugal. Economic sanctions andtrade barriers can lead to economic
downturns, prompting Portuguese
citizens to seek opportunities abroad.
Legal frameworks facilitating emigration,bilateral agreements on labour mobility,
and the protection of Portuguese citizens
working overseas are areas that requireongoing attention and adjustment inresponse to these global changes.
In summary, global geopoliticalevents have a multifaceted impact
on mobility in Portugal’s jurisdiction,affecting immigration and emigration
trends. These impacts necessitatea dynamic and responsive legal
framework that addresses humanitarianneeds, economic demands, andsecurity concerns, while aligning withEU policies and international law.

Rui Esperança has more than 25 years’ experience
as a lawyer. Rui was also an advisor in the Office of theSecretary of State for Labour between December 2002
and July 2004 and an assistant in the Office of theAssistant Secretary of State for Labour between July
2004 and March 2005, in Portugal.
+351 968 522 142
re@bindrl.pt
irglobal.com/advisor/rui-esperanca

Q2
Climate concerns are increasingly
becoming a decision-making factor
in global migration – how is this
impacting your jurisdiction?
Under the lens of Portugal’s legal
framework, climate concerns as a factor
in global migration are increasingly
impacting the nation’s jurisdiction inseveral ways.
Portugal, like many other countries,
is witnessing an increase in what can beInês Leitão de Oliveira has a law degree from theFaculty of Law of the University of Lisbon and a master’s
degree in Law and Legal Practice - Speciality inLegal and Forensic Sciences, from the same Faculty,
since 2021. Her experience focuses on Labour Law,
Litigation and Arbitration.
+351 213 10 41 20
ilo@bindrl.pt
bindrl.pt/en/team/ines-leitao-de-oliveiratermed “climate refugees” – individuals
and families displaced by climate-related
disasters or the gradual effects of climatechange. Although international law does
not currently recognise the legal statusof “climate refugee”, the growing numberof these migrants is beginning to leadto proposals from political parties within
the framework of these asylum andimmigration policies. This may involve
broadening the criteria for humanitarian
protection or developing specific legal
frameworks to respond to the needsof people displaced by environmental
factors.
Portugal’s relatively mild climate
makes it an attractive destination
for individuals from regions severely
affected by climate change. This isleading to a shift in immigration patterns,
with a growing number of migrants
from regions experiencing extreme
weather events, sea-level rise, or otherclimate-related issues. The legal system
is adapting to accommodate these shifts,
potentially creating special visas for
those affected by climate change.
From another perspective, climatechange is affecting agriculture invarious parts of the world, including
Portugal. This has implications for thelegal framework governing seasonal
and agricultural employees. Changes
in crop yields and harvesting periods
due to climate variations may lead toadjustments in the demand for seasonallabour, which in turn influences
immigration policies for temporary
agricultural employees.
In conclusion, as climate concerns
become a more significant factor
in global migration, the Portuguese
legal system is still beginning thenecessary adaptation to the complex

About us...

challenges posed by climate-induced
displacement. This involves revising
immigration policies, accommodating
new migration patterns, ensuring socioeconomic integration and participating
in international efforts to address theglobal challenge of climate migration.

Q3
How is government policy
influencing mobility in yourjurisdiction – particularly inregard to employment relocation?
Currently, government policy inPortugal is significantly influencing
mobility within its jurisdiction,
especially concerning employment
relocation. The government’s strategic
approach to attracting foreign talentand encouraging internal mobility isreflected in several key policy areas.
For instance, the Portuguese
government has implemented
incentives for foreign professionals
with policies aimed at attracting
skilled professionals from abroad.
This includes tax incentives, such as the
Non-Habitual Resident (NHR) regime,
which offers reduced tax rates for new
residents for a period of ten years.
Additionally, there are streamlined visa
processes for highly skilled workers,
including those in technology, science,and research sectors. These measures
aim to bolster Portugal’s workforce withinternational expertise, particularly inareas facing skill shortages.
On the other hand, recognising thegrowing trend of remote working, Portugal

bindrl.pt/en

BIND - Esperança, Vaz Osório e Associados, Sociedadede Advogados is an independent, medium-sized law
firm based in Lisbon, focusing on the following areas:• Litigation and Arbitration• Employment Law• Portuguese nationality• Medicine, Health and Pharmaceuticals• Public, Administrative and Regulatory Law

has adapted its visa policies to cater todigital nomads. This policy attracts a
global workforce that can work remotely
while residing in Portugal. It not only
diversifies the skill base in the country
but also stimulates local economies,
particularly in less urbanised areas.
Moreover, the government
provides support for start-ups andentrepreneurial ventures, encouraging
both domestic and international
entrepreneurs to establish theirbusinesses in Portugal. This includes
initiatives like startup visas, whichfacilitate the entry and stay of non-EU
entrepreneurs who plan to launch
start-ups in Portugal. Such policies
attract foreign investment and talent,
contributing to job creation andeconomic growth.
From an internal perspective, toaddress regional disparities and preventthe depopulation of rural areas, thePortuguese government has initiatedpolicies to encourage internal mobility.
This includes incentives for businesses
and individuals relocating to lessdense regions, such as tax benefits,
grants, and support in infrastructuredevelopment. These initiatives aim
to balance economic growth acrossdifferent regions of Portugal.
As a member of the European
Union, Portugal aligns with EU-wide
policies that facilitate labour mobility
within member states. This includes
adherence to principles of freemovement, allowing EU citizens to workin Portugal without the need for a work
permit, thus simplifying the process forboth employers and employees.
In conclusion, government policies
in Portugal are actively shaping thelandscape of employment relocation.
By creating an attractive environment forforeign professionals, supporting digital
nomadism, fostering entrepreneurial
growth, and encouraging internal
mobility, Portugal is enhancing its
position as a dynamic and diverse
hub for employment opportunities.
Nevertheless, despite policies toattract foreign talent, the fact is thatwhen it comes to internal talent, there
is a high outflow of qualified workers,
given the low internal competitivenessand low salaries. This outflow trend
contrasts with the inflow trend of
unskilled labour.
irglobal | 73

• GLOBAL MOBILITYGERMANY

Remotepossibilities
Dr. Gerd Müller-Volbehr
PartnerMüller-Volbehr Hitzer Rechtsanwälte

Dr Gerd Müller-Volbehr studied at the Universities ofMunich, Augsburg and Paris II (Panthéon-Assas) andis a founding partner of ACURIS Rechtsanwälte. He
advises in labour law, corporate law, commercial law
and data protection.
In the field of labour law, he advises international
companies on restructuring, designing operational
structures and managing work processes. In this context,
co-determination (negotiations with works councils) andcollective bargaining law are strongly relevant. He also
specialises in compliance and data protection, company
pension schemes and employee leasing.
+49 89 2500 7833 1
mueller-volbehr@mvh-law.de
irglobal.com/advisor/dr-gerd-muller-volbehr

74 | irglobal

Covid-19 crisis as a catalyst
for mobile working
The Covid-19 crisis was the central
event for employee mobility in the years
2020 to 2022. Many employees were
given the opportunity to work remotelyfrom home within a very short spaceof time. Meetings were no longer
held in the company, but via videoconferencing. This form of working
was immediately embraced by many
employees, and after the Covid-19
crisis, many companies continued thisform of working.
Recently, many companies,
especially large companies, havebeen rethinking their approach, as
mobile working also has downsides.
Much of the normal communication
between employees is lost, and this has
considerable consequences for theflow of information within the company,
and social interaction, company loyalty,
and innovation are weakened. The
consequence of this critical view ofworking entirely from home is thatmost large companies are calling theiremployees back to the workplace andonly accepting 1-2 days of remote
work per week, which is now common
practice.
Mobile working also opens up the
possibility of addressing the shortageof skilled workers and employing
staff whose place of residence isa considerable distance from thecompany headquarters.
Against this background, thelegal requirements for mobile working
must be examined for each individual

place of work. In the case ofalternating work (e.g. two days a week
in the home office and three days a week
in the company) and mobile work, theemployee must bear the costs for thejourney to the company himself if there isno contractual provision to the contrary.
Mobile working abroad• Applicable lawcase, which includes questions of
employment, social security law,tax, and residence law, as well as
registration and verification obligations.

A supplementary agreement isstrongly recommended for mobile
working abroad. This agreement
should, for example, specify the law
applicable to the employment contract.
In principle, the employment law of thecountry in which the employee’s usual
place of work is located applies. For
short stays abroad, the place of work
should still be in Germany. In the caseof longer stays, the law of the country
in which the employee is staying could
apply without regulation.

Selected Highlights• Residence law requirements andMobile working in Germany
Mobile working in Germany generally
has few special features compared
to working at a fixed workplace in thecompany. In principle, the employee has
no claim to be able to work remotely.
Rather, the employer can determine
whether and to what extent the employee
can work on a mobile basis within thescope of its right to issue instructions.
As the employee cannot be obliged
to work remotely, the implementationof mobile working ultimately requires
agreement between the employer andemployee. The question of whether
the employer is entitled to order theemployee to return to work from thehome office against the employee’s
will or whether a contractual provision
is required in this regard has not beenclarified.
It is also advisable to clarify whether
the employee may use his own work
equipment and whether any additionalcosts incurred, such as for internet,
electricity or hardware, are to be
reimbursed.
Furthermore, travel costs from thehome office to the company or to the first
customer or from the last customer backto the home office must be reimbursedby the employer if there are no deviating
contractual provisions and the homeoffice is the only contractually agreed

other reporting obligations
If an activity has a foreign connection,
employers must always bear in mind
possible reporting obligations. These
exist in almost all countries and varyfrom state to state. Timely information
helps to avoid sanctions!

• Right of residence

and residence permit
If an EU citizen works in a member
state of the European Union, they enjoy
the privilege of freedom of movement.
This means that EU citizens can travel
to and work in any member state.
Mobile work in an EU member state istherefore possible under residence law

About us...

(at least for a period of three months)
without any major obligations to provide
proof of residence.
When working in so-called third
countries (countries that are notmembers of the European Union),
residence is generally only possible
with a corresponding residence permit(such a regulation has also applied to
UK nationals since January 1, 2021
as a result of the Brexit).

• Social security law

The social security obligation isdetermined according to the so-called
country of employment principle. Thismeans that the social security law of thecountry in which the employee actually
performs the work applies. The only
exception is in the case of secondment.
This is the case if the employee of a
German company works abroad inanother member state on the instructionsof the employer and this activity does notlast longer than 24 months.
Whether the employee’s request formobile work abroad can be equatedwith an instruction from the employer
is controversial. If this is the case,the social security classification in
the Member State of residence cancontinue to apply in accordancewith Art. 13 of Regulation (EC) No.
883/2004, provided that 25% of thework activity is carried out abroad
during the year.
In addition, the so-called
A1-certificate is essential for workin the European Union. It provides
information on whether an employee
is covered by social security in his
home country when working abroad.

The A1-certificate should therefore beapplied for before every stay abroad.

• Tax law

Taxation is based on the place of
employment principle. According to theapplicable double taxation agreements,
income from non-self-employed work is
generally attributable to the country ofactivity. The OECD Model Tax Convention,for example, stipulates that the country ofresidence has the right of taxation if
1. the employee does not spend morethan 183 days in the host country,
2. the employer paying the
remuneration is not resident in the
country of employment and3. the remuneration is not
economically borne by a permanentestablishment of the employer in the
country of activity.
In addition to the 183-day rule, it isessential to ensure that no so-called
permanent establishment is created in
the respective country of activity. This
would not only have consequences forthe employee’s income tax, but also forthe company’s other tax obligations.

Summary
Mobile working is rightly popularwith employees and has become an
integral part of everyday working life.
However, the implementation of mobile
working affects a large number of legal
areas and raises numerous questions,particularly in the case of foreign
assignments. Employers must examine
and approve each individual case toensure that their employees’ activities
abroad are legally compliant.

mvh-law.de/#uber-uns

Müller-Volbehr Hitzer is a law firm specialisingin labour law, based in Munich. We have many
years of outstanding expertise in this field andrepresent companies, supervisory boards, board
members, managing directors and executives.
We advise our clients in all matters of individualand collective labour law and represent them incourt throughout Germany and out of court.
Our clients include corporate groups andmedium-sized companies from the information
technology, automotive, metal and electronics

industries, medical and laboratory technology,
finance, media, education, fashion, wholesale
and foreign trade, as well as the construction andgastronomy sectors. We also advise charitable
institutions and NGOs.
We maintain a long-term, trusting cooperation
with our clients. Together with our clients,
we develop individual solutions that take into
account the business environment, the strategic
scope and the situation of the people affected.

irglobal | 75

• GLOBAL MOBILITYSWITZERLANDMY ADVICE...

The Law and Politics
of Swiss Immigration
Monika Naef
Partner
DUFOUR – Advokatur+41 6120 503 03
monika.naef@dufo.ch
irglobal.com/advisor/monika-naef

76 | irglobal

In general, Switzerland is still quite
liberal in terms of employment laws
and immigration, despite the restrictions
outlined above. However, legislation and its
implementation are becoming stricter, particularly
with regard to international mobility of the workforce, with protectionist tendencies on the rise.

Q2
Q1
How are global geopoliticalevents affecting mobility in yourjurisdiction?

Monika E. Naef is Partner & Owner of DUFOUR
Advokatur AG (Dufour Attorneys). Her focus areas are
employment and business law, business development
and M&A, international business relations and tradelaw. After earning her law degree from the Universityof Basel and passing her bar exam in Basel-Land,
Monika became in-house legal counsel for a
multinational pharmaceutical and chemical group, with
global leadership responsibilities. She also headed
the multifunctional M&A review team as well as theTrademarks Department. In 2005, she moved into
private practice by establishing DUFOUR Advokatur
together with other partners at its current domicile.
Monika attended INSEAD (International Executive
Programme) and is a Certified Global Negotiator(CGN-HSG).

of, which could lead to tax and social
security issues, where there are notreaties in place. Switzerland has not
yet passed specific legislation for
digital nomads, but there are certain
visa options available for high-net-worth
individuals or entrepreneurs.

Switzerland is the highest ranked
country in terms of average wealthper adult, surpassing even the USA.
Its unemployment rate is low, lessthan 2.5% in 2023. In addition, theaverage tax wedge on labour income in
Switzerland for individuals is quite low
in comparison to the OECD average.
Switzerland has opted for permanent
neutrality as a guiding principle for
its foreign policy. However, recent
geopolitical events are challenging this.
With the outbreak of the war in
Ukraine, Switzerland registered a spikein the number of asylum seekers. As arule, refugees are not permitted to work
until their request for asylum has been
granted. However, in 2022, more than
75,000 refugees from Ukraine were
granted special status “S”, allowing
them to enter the workforce immediately.
This special status was introduced into
legislation in 1998 as a reaction to the
refugee flows from the wars on the
Balkans, but has never previously been
activated. The current special refugee
status “S” will expire in March 2024.
According to the UN Refugee
Agency, in mid-2023 more than 110
million people have been forcibly
displaced, including for reasons ofclimate change. Half of these displaced persons originate from justthree countries: Syria, Afghanistan
and Ukraine. The number of displaced

force. Individuals from these countries
require a residence, a work permit anda visa. The residence and work permits
are divided into different categories
and are of varying duration. They are
restricted in number by annual quotas
allocated to the individual twenty-six
Cantons by the Federal Government. To
obtain a work permit for a third country
national, an employer needs to show
and document that despite their best
efforts, no suitable Swiss, EU, or EFTA
national could be found to fill the vacant
position. There are detailed regulations
regarding the type of documents need
to be submitted to obtain a valid permit,
and processing time is usually between
four to eight weeks.

Climate concerns are increasingly
becoming a decision-making factor
in global migration – how is this
impacting your jurisdiction?
persons is on the rise and were expected
to reach 130 million by the end of 2023.
In total, in the year 2022, Switzerland
registered 100,000 new refugees in total.
2023 figures are not yet available.
In addition to the migration of
displaced persons, Switzerland allows thefree movement of EU or EFTA nationals,
though these agreements are currently
being renegotiated. The number of
immigrants is a contentious matter in
Swiss politics. Being an attractive country
to work and live in, with high incomes, low
tax rates, a well-functioning infrastructure
and political stability, many people chose
to live here. Of the approximately 9 million
people living in Switzerland, about one
quarter are foreign nationals, two thirdsof which are EU/EFTA nationals (about
1.59 million). Roughly 700,000 havenationalities from other countries, so
called third countries. Post Brexit, UK
nationals are now also considered asnationals from third countries and require
a work and residence permits to live andwork in Switzerland. UK nationals residing
in Switzerland prior to Brexit, benefit
from the safeguard of their prior rights
under the EU freedom of movementagreements. Strong immigration has led
Switzerland to become very restrictive in
issuing residence and work permits, with
fixed quotas granted by the Swiss federal
government every year.
Since the Covid-19 Pandemic,
home working has flourished. Foreign
employers are employing Swiss or EU/
EFTA nationals and sometimes third
country nationals living in Switzerland
who work remotely. There are a numberof challenges in this arrangementthat an employer needs to be aware

Certain parties contend that millions ofclimate refugees will migrate to Europe
in the next 25 years. They argue thatthe population explosion will lead toa Swiss population of 10 million,
negatively affecting quality of life,straining infrastructure and supplies,
and leaving locals alienated. Thoseparties are pushing for more restrictive
rules, and campaigning against the
renewal of the bilateral treaties.
Others are more relaxed and do
not believe that Europe will be severely
affected by climate refugees, because
those most affected by climate change do
not usually have the financial resources toflee over long distances to Europe.
Currently, climate change is not
an accepted reason to grant refugee
status. Given the rise in popularity ofconservative politicians through-out
the world, this will not likely change inthe short term. Thus, in Switzerland,
the normal immigration restrictions
for third country nationals remain in

About us...

Any relocation, whether by a company as awhole or for an individual, needs to be carefullyplanned. Particularly, legal and tax advice
should be obtained prior to deciding andimplementing such measures and ensure thatany permits required are obtained in time prior
to setting up shop.

Q3
How is government policy
influencing mobility in yourjurisdiction – particularly in regard
to employment relocation?
Switzerland boasts a stable politicalenvironment, a reliable tax regime, andgood infrastructure, which make it an
attractive venue for companies to set

up operations and for people to wantto live. One of the current issues thatthe country is facing is a shortage ofskilled workers and specialists. This has
led to the use of cross-border workers
for individual assignments for projects.
To avoid salary dumping, undercutting
the high salaries in Switzerland,
legislation forces such providers toabide by minimum salary and minimum
working conditions. Foreign providers ofservices and goods who do not comply
can be fined and blacklisted.
Additionally, high labour, material,and energy costs in Switzerland havealso forced many industries, particularlyin the manufacturing space, to outsource
their operations to more affordable
third countries. When restructuringor downsizing, there are several legal
challenges, such as the rules on massdismissals, which require negotiations
with the employee representatives.
Current legislative changes
are affecting the high cost base in
Switzerland even further. As of January
1, 2024, the VAT rate has increased to
8.1% (from 7.7% in 2023) in order tofinance the state social security for old
age and survivors’ pensions. Several
Cantons have introduced minimum
wages above those set out in any
collective bargaining agreement.

dufour-advokatur.ch

DUFOUR Advokatur AG wanted to offer morethan just legal advice from the beginning. We
created a quite unique consulting culture – withunconventional ideas, an excellent team spirit
and competence that extends beyond the legal view
to include the social and emotional aspectsof a mandate.
Today DUFOUR successfully advises many
companies, private individuals, foundations, nonprofits, and pension funds. In the field of pension

funds, charitable funds, foundations and NPOs,
DUFOUR has established itself as the top specialist
in Switzerland. We offer comprehensive legal advice
and have a team of recognised experts with coreskills in employment, corporate, licensing and trade
law as well as matrimonial property and inheritancelaw. In addition, DUFOUR has excellent knowledge
in the legal aspects related to the following
industries: pharmaceuticals, chemicals, medtech,trade & logistics, construction and the art market.

irglobal | 77• GLOBAL MOBILITY

UAE

Destination
UAE
Thomas Paoletti
Founder & Managing Partner
Paoletti Legal Consultants LLP

Q1
How are global geopoliticalevents affecting mobility in yourjurisdiction?
Geopolitical instability generally
influences mobility. However, emigration
does not come exclusively from conflictzones, and can be purely economic.
The immigration policies of the UAE
intend to attract skilled professionals.
The policy has helped the UAE attract
exceptional talent.
The UAE has a safety index of 84.9
and is considered one of the safest
countries in the world. Three of its
cities are in the top five safest globally.
The major attraction that immigrants
find in the country is its openness andcommitment to pluralism, and it is home
to a 90% foreign population, and over
200 nationalities.

Q2
Climate concerns are increasingly
becoming a decision-making factor
in global migration – how is this
impacting your jurisdiction?
The entire GCC region is likely to facea climate crisis as many climate-related
studies have pointed to the fact that
there shall be an increase in temperature
78 | irglobal

up to 5 degrees in the GCC region by
the end of this century, meaning that
local populations, including in the GCC,
will face major health and livelihood
challenges in the coming future. As
many as 400 million inhabitants of the
Middle East will be at risk of exposure to
extreme heat waves that may also stokesocial and political tensions.
The UAE’s government has beenvery keen to address global concerns
over climate change and has acted
to reduce its carbon footprint and thedependence of its economy on fossil
fuels. The same is evident from theUAE hosting the recently held COP28(United Nations Climate Change
Conference or Conference of theParties of the UNFCCC).
The UAE has been at the forefrontof acting on climate policies and has
set the target of 2050 for the goal of net
zero emissions. However, resource-richcountries like the UAE will experience
an increase in the rate of immigrationfrom poorer regions despite their own
forecasted climatic challenges. The
GCC could potentially receive some of
the 143 million climate migrants fromSoutheast Asia, Sub-Saharan Africa,and Latin America, that the World Bank
expects could be displaced by 2050.

Thomas began practising law in Rome. After a client
requested assistance with a matter in Dubai, he began
visiting the city regularly and soon discovered there was aunique drive for innovation and forward-thinking leadershipthat embraced globalisation.
After working with a local law firm for five years, Thomas
founded the Paoletti Law Group in 2014. Initially licensed
in Ras Al Khaimah, Thomas soon moved his operations to
Dubai, eventually opening a branch in Abu Dhabi.
Thomas believes legal representation is more than justproviding advice and documentation – it’s a supportive
relationship that empowers a business throughout its
entire lifecycle. His own extensive experience working withcompanies from across the globe has shown him how vital
the right legal support system can be for businesses tothrive in any market.
+97 1266 734 33
tp@paoletti.com
irglobal.com/advisor/thomas-paoletti

MY ADVICE...
For those thinking about moving to
the UAE, the country’s thoughtful
immigration policies and efforts to attract skilled
professionals make it an attractive choice.
Recent global changes, combined with the
UAE’s reputation for stability and openness,make it appealing to those seeking security andbusiness prospects.
When it comes to climate concerns,
recognising the UAE’s commitment
to addressing environmental issues is also
important. The government’s actions to reducecarbon emissions and host international climate
conferences (COP28) show a strong dedication
to environmental sustainability. Indeed, while there
might be climate challenges, the UAE’s proactive
measures contribute to its long-term viability.

Q3
How is government policy
influencing mobility in yourjurisdiction – particularly regarding
employment relocation?
The UAE government has introduced
massive changes to its labour laws
through Federal Decree Law No 33 of
2021. The new law aims to enhance
the nation’s labour market’s elasticity,
resilience, and sustainability and promotea flexible and competitive businessenvironment for the next 50 years.
Additionally, with these new laws
and visa regulations, the UAE is working
to create a welcoming environment
for foreign individuals and investors,
further solidifying the UAE’s position as
an attractive destination for living andconducting business.
The law prohibits discrimination,
forced labour, harassment and bullying;some of the other new developmentsin the labour laws that shall apply
to private sector employees is theintroduction of temporary and flexible
work models to allow flexible hiring andworking practices.
Furthermore, recent legislativechanges have seen an increase inmaternity leave provisions, reflecting thegovernment’s commitment to supporting
family life and gender equality.
Additionally, other initiatives, such asenhanced quality-of-life measures, have

Looking at government policies
affecting mobility, especially in
employment relocation, it’s essential to stay
updated on recent law changes. The UAE’s
modern labour laws, visa rules, and programs
like the Golden Visa and Green Visa offer
diverse opportunities for various individuals,
from skilled professionals to entrepreneurs
and investors.
In terms of taxes, understanding thebenefits of the UAE’s tax structure is an
important key for managing finances well anddeciding where to invest. While it’s not entirely
tax-free with the introduction of a 9% corporatetax, the country’s tax rules offer advantages
that can positively impact lifestyles andfinancial well-being.

been introduced to create a holistic andinclusive environment, making the UAE
an even more desirable destination for
individuals seeking not only professional
opportunities but also a higher qualityof life.
Further, the UAE government has
made it easier for freelancers to migrate
to the jurisdiction by introducing
Freelancer Visa. This Visa allows
self-employed individuals to sponsor
themselves. Workers in the UAE andoverseas in specialised fields such as
blockchain, AI, and digital currencies
can access the freelancer visa.
The new labour law also lays certain
obligations on employers, which include
providing accommodation, training
and other means to ensure the safety
and welfare of the employees throughinsurance, healthcare costs andother entitlements to the employee’s

About us...

family upon his or her death. Workers
are also expected to maintain good
behaviour, observe the health and safety
instructions and constantly develop theirskills. The law has fixed ordinary working
hours at a maximum of 48 hours per
week and 8 hours per day. An employee
can only work two hours’ overtime perday, and the total working hours shall not
exceed 144 hours in three weeks.
Among the several schemesannounced is the newly introduced
Green Visa, which allows residency
for five years for individuals aiming
to build a future in the country. The
Green Visa will be available to investors,
entrepreneurs, highly skilled individuals,
top students, and graduates. Green Visa
holders can sponsor themselves, theirparents, and children under 25.
The introduction of the Golden
Visa in the UAE represents a significant
milestone in the country’s efforts to
attract global talent and investment.
The Golden Visa initiative allows foreign
individuals and their families to obtain
long-term residency in the UAE, providingthem with the opportunity to live, work,
and invest in the country. This strategic
move is designed to enhance the UAE’s
appeal as a hub for professionals,
entrepreneurs, and investors, fostering
economic growth and diversity.
All of these reforms to the labour law,along with the introduction of easier visa
norms to attract not just skilled employees
but also freelancers, businessmen,
etc, have promoted the immigrationof exceptional talent to the country.
The UAE’s tax structure isalso attractive, with advantageous
regulations with which individuals
can optimise their financial resources.

paoletti.com

PROTECTION FOR GROWTH: We deliver pre-emptive
legal solutions to prevent disputes from negatively
impacting your business.
CONSISTENT AND ACCESSIBLE SUPPORT: We use
our knowledge and experience to provide practical legal
assistance and open, accessible support our clients rely
on for their businesses’ success.
Clients depend on our specialised knowledge andexpertise to support their businesses around the world.

irglobal | 79• GLOBAL MOBILITYANGUILLA

Anguilla’s “.ai” domain
and Anguillian Mobility
Nina Rodriguez
Associate
Webster LP

Q1
How are global geopoliticalevents affecting mobility in yourjurisdiction?
AI Sector Development
The development of ChatGPT andother technological advances has thepotential to contribute significantly to
global mobility and economic growth.
In particular, the ownership of the “.ai”
domain, in the context of Anguilla, canplay a role in positioning the country asa hub for AI-related activities.
The ownership of the “.ai” domain by
Anguilla can serve as a unique identifierand brand for the country in the global
AI landscape. This can attract attention
to Anguilla as a player in the AI sector
and may encourage the establishmentof AI-related businesses and initiatives
within the country.
COVID-19 Pandemic
The COVID-19 pandemic had aprofound impact on global mobility.
Travel restrictions, lockdowns, andhealth protocols significantly disrupted
international travel and migration patterns.
As the world gradually recovers
from the pandemic’s effects, there isa resurgence of enthusiasm for travel.
People are embracing a renewed senseof wanderlust, eager to explore andexperience new destinations. This surge
in travel excitement signals a positive
rebound for Anguilla’s tourism industry.
80 | irglobal

BrexitThe United Kingdom’s withdrawal
from the European Union has resulted
in changes to immigration policies
and regulations. These changes
have implications for the mobility of
individuals between the UK and EU
member states, directly affecting
Anguillian nationals due to Anguilla’s
status as a British Overseas Territory.

Q2
Climate concerns are increasingly
becoming a decision-making factor
in global migration – how is this
impacting your jurisdiction?
Climate concerns are increasingly
becoming a pivotal factor in global
migration, and this phenomenon isnotably influencing our jurisdiction. While
not tied to a single event, the impact

Nina Rodriguez is an associate at Webster Legal in theProperty and Private Client Departments. She completed
the Legal Practice Course at BPP Law School in
London with Distinction. She was admitted to the Rollof Solicitors of England and Wales in 2018 and wascalled to the Anguilla Bar in 2022.
Specialising in real estate, she has a breadthof experience advising clients on the acquisition,
disposal, leasing and development of commercial
and residential property.
Her practice also includes offshore privateclient and trust services. She is involved in thecreation of trusts, estate planning and advisingon general matters of trust law.
+1 264 497 2060
nrodriguez@Websterlawbwi.com
websterlp.com/people/nina-rodriguez

of climate change is emerging as asignificant driver of migration. Factors
such as rising sea levels, extreme
weather events, and environmental
degradation are compelling populations
to seek safer living conditions.
In the context of Anguilla, an island
heavily dependent on marine resources,
climate change presents a serious
challenge for the fishing industry. Rising
sea temperatures, ocean acidification,and extreme weather events disrupt
fish habitats and diminish fish stocks,
affecting the livelihoods of local
communities dependent on fishing.
As the traditional fisheries sector
faces a decline, the economic strain
and reduced opportunities may drive
migration among these populations.
This highlights the complex interplay
between environmental changes andhuman mobility in the face of climate-

MY ADVICE...
Organisations can navigate the complexities
of global mobility in a changing geopoliticallandscape, ensuring resilience, adaptability,
and sustainable practices by embracing thefollowing recommendations:
Understand how political shifts, conflicts, andinternational relations may impact mobility
trends on both a global and local scale.
Leverage technology to enhance theefficiency and adaptability of global
mobility processes.

related challenges.
Moreover, the increased risk ofsevere hurricanes in the summer
adversely impacts Anguilla’s tourism
sector, limiting its growth to the winterand spring. This has a significant effecton our economy, given that tourism is themain industry on the island of Anguilla.

Q3
How is government policy
influencing mobility in yourjurisdiction – particularly in regard
to employment relocation?
Government policies play a pivotal rolein influencing mobility in our jurisdiction.
Several key initiatives highlight thisinfluence:

About us...

Consider and mitigate the environmental
impact of global mobility and strive to adopt
sustainable practices.
Foster strong networks and collaborations
with international partners, governmental
agencies, and industry peers to navigate
challenges collaboratively.
Stay well-informed about immigration
regulations and policies in different regions
and adapt swiftly to regulatory changes.
Invest in talent to create a resilient andadaptable workforce.

Residency by Investment
Programmes:
The Government of Anguilla has recently
introduced two Residency by Investment
Programmes: Residence for Tax Purposes
and the Residence by Investment
Programme for Permanent Residency.
These initiatives are appealing to high-networth individuals seeking a tax-efficient
residence or for those desiring relocation
to a secluded, tropical paradise.
The Residence-by-Investment
Programme provides a mechanism toestablish a second home in Anguilla aswell as a pathway to British nationality.
The Residence for Tax Purposes
Programme serves as a tax planningsolution for globally successful citizens,international investors, and entrepreneurs.
In addition to offering one of themost attractive tax regimes, Anguilla isa regulated offshore jurisdiction withmodern and flexible financial planningsolutions for both businesses andindividuals such as the creation oftrusts, foundations, investment funds
or international companies.
Mobility in the local workforce
In a deliberate effort to safeguard
the interests of its nationals, theGovernment of Anguilla has
implemented stringent policies
regarding the issuance of work permits
to foreigners. These measures aim
to ensure opportunities for the local
workforce. Acknowledging Anguilla’s
small size, the Government is also
mindful of the need to attract global
talent. There is a renewed focus on
fostering a dynamic working culture
and enhancing the economy by actively
seeking skilled individuals globally.
Striking a delicate balance between
protecting local opportunities andembracing international talent, theGovernment is committed to creating
a robust and competitive workforce,
contributing to the nation’s growthand prosperity.
Digital Nomad VisaIn response to the prevailing trend of
remote working, Anguilla is embracing
digital nomad visas. The jurisdiction isincreasingly open to attracting skilled
remote workers. This initiative aligns
with the evolving nature of work andfacilitates the influx of diverse talents
contributing to the growth and vibrancyof Anguilla’s workforce.

websterlp.com

Webster LP stands as a leading law firm in
Anguilla and Nevis, distinguished by its global
reach through esteemed associations worldwide
and an unwavering commitment to delivering thehighest standards of advice and service.
The firm specialises in a comprehensive
array of legal domains, including internationalcommercial litigation, corporate and commercial
law, real estate, estate planning, governmental
and constitutional affairs, intellectual property, andoffshore finance and also provides registered officefacilities through its affiliate Registered Agent.
Webster LP provides cross-border advice toAnguillian, Nevisian and international clients.
Its approach to problem-solving and strategicplanning is marked by creativity, ensuring that its
services are crafted to meet the unique needsof each client, regardless of the nature of theirmatter or transaction.
As the exclusive Anguillian member firm ofprestigious global networks, such as Lex Mundi, theState Capital Group, IsFin, World Services Group,and the MSI Global Alliance, Webster LP recognises
and deeply appreciates the value of cross-bordercooperation between professional service firms.
Webster LP is uniquely qualified to assess thepolitical and constitutional forces that may impact
its clients’ commercial activities in Anguilla. The
firm is dedicated to safeguarding clients’ interestsand providing unparalleled legal expertise.

irglobal | 81

• GLOBAL MOBILITY

MALTA

Mobilityin Malta
Chris Armstrong
Director
Papilio Services LimitedIn today’s interconnected world,
global mobility is an ongoingchallenge. The solution to this iscomplex and involves many factorsthat have an impact on businesses
and governments. Global mobility issignificantly impacted by geopoliticalevents on a global scale, which leads
governments to implement policies
aimed at mitigating and overcoming
their effects. Migration patterns arebeing increasingly impacted by theworldwide issue of climate change.
Global mobility is, therefore, botha challenge and an opportunity that ismore readily available to companies andindividuals now than it has ever been.

Global Geopolitical Events
Affecting Mobility in Malta
Malta is an English-speaking, small island
republic in the Mediterranean Sea with apopulation of approximately half a million
people. It is a member of the European
Union (EU) and the Schengen Area,
which means that people and goods
enjoy the freedom of movement. Due to its
pleasant temperature, fascinating history,
varied culture, and alluring residence andtax plans, Malta is a well-liked destination
for both tourists and expats.
However, Malta’s global mobility has
also been affected by some of the recent
global geopolitical events, such as:• The COVID-19 pandemic has
disrupted the global mobility ofpeople and goods, as many countries
imposed travel restrictions, lockdowns,
quarantines, and testing requirements
to contain the spread of the virus.
82 | irglobal

Stay Informed. Keep abreast of thelatest geopolitical events, climate change
developments, and government policies. This
will help you anticipate changes and adapt yourbusiness strategies accordingly.
Understand Local Regulations.
Each jurisdiction has its own set of
regulations and policies, and also you need tofactor in the cultural differences. Understanding

has been felt in sectors such as
finance, fintech, e-commerce, andgaming, where many companies
have traditionally relied on the easy
movement of the workforce between
Malta and the UK and ulilised theopportunity to mitigate the impactof Brexit by registering a company
in Malta, used as a stronghold tooversee business activities within
the EU market.

• Over the past few years, several

global conflicts and controversies
have arisen or intensified. These
conflicts have exacerbated theregion’s challenges for international
collaboration and engagement on
a variety of problems, including
migration, trade, energy, security,and human rights.
• Brexit, or the UK’s decision to quit theEuropean Union, had wide-ranging
effects which were felt on businessand mobility, especially with regard
to migration and job relocation.
These geopolitical events amplify
the importance of global mobility andhighlight the need for businesses
and individuals to stay abreast of thechanging global landscape.
Malta has also seized some of theopportunities that emerged from global
mobility, such as:• Positioning itself as a flourishingdigital island, to attract high-valuedriven industries and harness
technological prowess, bycreating a favourable environment
for innovation, creativity, anddigitalisation.
• Promoting its tax and residency
schemes, to appeal to international
companies and individuals who arelooking for a stable and competitive
jurisdiction for their investments,
by offering various benefits andincentives, such as advantageous
corporate tax rates, global residence
and retirement programmes.
• In Malta, the impact of Brexit

MY ADVICE...

Climate Concerns Are Increasingly
Becoming a Decision-Making
Factor in Global Migration

Chris started his career in London working for several
blue chip and FTSE-listed companies which harnessed
his strong financial and commercial background.
Relocated to Malta in 2008 and worked for international
companies that specialised in financial planning andtaxation advisory for international clients, high net-worth
individuals and entrepreneurs advising on a variety ofcompliance, corporate, residence and tax issues.
Chris has a strong understanding and knowledgeof financial accounting and reporting standards;
taxation and compliance matters in a variety of different
industries. He is a chartered certified accountant andholds a Diploma in Fund Administration. He also holds
qualifications in Trusts and Estate planning including theuse of foundations.
He is a member of the Institute of Financial Services
Practitioners (IFSP), the Association of Chartered
Certified Accountants (ACCA) and The Society of Trustand Estate Planners (STEP).
+356 2258 2000
Chris.A@papilioservices.com
irglobal.com/advisor/chris-armstrong

Climate change is now an importantfactor that affects global migration
decisions. Malta has taken climate
concerns into account when shaping
its policies and making decisions. The
influence of climate change on migration
patterns cannot be ignored, as various
global factors such as climate change,
conflict, and demographic changes playa role in shaping future migration trends.

About us...

these can help you operate more effectively andavoid potential pitfalls; therefore, always seek
advice from local experts with multilingual andmulticultural experience.
Leverage Government Initiatives.
Many governments offer incentives forbusinesses that contribute to sustainability
goals which creates unique opportunities
and a competitive entrepreneur edge.

One of the key strategies is Malta’s
first 30-year strategy leading towards acarbon-neutral economy. This strategy
includes a green paper titled “Towards
Cleaner Vehicles on our Roads”. The aim
is to encourage the use of low-emission
vehicles, thereby reducing Malta’s carbon
footprint by developing and improving its
sustainable transport systems, reducing
its carbon emissions and enhancing its
regional and local mobility, by investing inelectric vehicles, multimodal links, smart
parking, and urban mobility plans.
In addition, Malta is shifting froma linear to a circular economy. This
involves implementing tangible reforms
in sensitive sectors such as construction
and planning, with measures andincentives that will push the necessarychange. This shift is expected to reduce
waste and promote the efficient use ofresources, which are key aspects ofclimate change mitigation.
Furthermore, the Maltese
government has developed the “2030

National Energy and Climate Plan”.
This comprehensive plan outlines thecountry’s commitments to reducing
greenhouse gas emissions, increasingenergy efficiency, and promoting
renewable energy.

Government Policy Influencing
Global Mobility
Malta is a significant player in the
global mobility scene, especially with
its recently updated tax regulations
to support digital nomads and its
renowned programmes such as the
Malta Global Residency Programme(for non-EU citizens), The Residence
Programme (for EU citizens), the Malta
Highly Qualified Person Rules, theUnited Nations Pensions Programme(UNPP) and The Malta Retirement
Programme (MRP). These policies aim
to attract investors, retirees and remoteworkers to the country, fostering the
local economy and promoting diversity.

Papilio Services Limited: Your
Partner in Global Mobility
Papilio Services Limited, a leadinginternational corporate service provider,offers essential business support andcorporate solutions, specialising in
corporate, tax compliance and residency.
With a holistic approach, Papilio provides
local expertise where it matters, assistingwith corporate service matters including
company formation, re-domiciliation,
branch establishment, mergers andacquisitions, trusts, and foundations.

papilioservices.com

Papilio was founded in 2012 and has grown tobecome a trusted partner to international clientsfrom all over the world. As a leading service
provider, we develop and maintain business
relationships with our clients by offering essential
business support and corporate solutions andspecializing in corporate, tax, residency, andcompliance. We offer a holistic approach with apersonal touch providing local expertise where
it matters.
As an international company, we provide awide range of solutions that fit your business
requirements. From company formation andregistration to mergers and acquisitions orbusiness re-domiciliation through to trusts andfoundations and branch establishment, we help
businesses wherever they are in the world, fromstart-ups to international enterprises, across a
range of sectors. Our specialists, highly qualified
teams of professionals, made up of accountants,
lawyers and tax advisors across key strategic
locations, including Malta, the Netherlands and theCzech Republic, offer expert local knowledge and‘on-the-ground’ support to help clients establish
business operations or corporate structures, whilst
ensuring that the complex legal and compliancerequirements, in each jurisdiction, are adhered to.
Therefore, when consulting with Papilio, you
can trust that we will find the best answer for you
and your business.

irglobal | 83

• CONTACTS

Isabella Bertani BERTANI
irglobal.com/advisor/isabella-bertani

Kenji Kuroda Kuroda Law Offices
irglobal.com/advisor/kenji-kuroda

Chris Armstrong Papilio Services Limited
irglobal.com/advisor/chris-armstrong

Haley Legg CCK Strategies, PLLC
irglobal.com/advisor/haley-legg-cpa

Erika Baldacchino WDM International
irglobal.com/advisor/erika-mizzi

Dunstan Magro WDM International
irglobal.com/advisor/dunstan-magro

Paul Beare Paul Beare Ltd
irglobal.com/advisor/paul-beare

Magdalena Marciniak MDDP Michalik Dłuska Dziedzic i Partnerzy
irglobal.com/advisor/magdalena-marciniak

Phillip Braude Braude Wealthirglobal.com/advisor/philip-braude

Dr. Gerd Müller-Volbehr Müller-Volbehr Hitzer Rechtsanwälte
irglobal.com/advisor/dr-gerd-muller-volbehr

Adrienne Braumiller Braumiller Law Group, PLLC
irglobal.com/advisor/adrienne-braumiller

Monika Naef DUFOUR – Advokatur
irglobal.com/advisor/monika-naef

James Conomos James Conomos Lawyers
irglobal.com/advisor/james-conomos

Chris Niekamp Buckingham, Doolittle & Burroughs, LLC
irglobal.com/advisor/chris-niekamp

Thomas H. Curran Thomas H. Curran Associates, LLC
irglobal.com/advisor/thomas-h-curranInês Leitão de Oliveira Bindbindrl.pt/en/team/ines-leitao-de-oliveira

Vimal Damry Premier Financial Services Limited
irglobal.com/advisor/vimal-damry

Claes Ottoson Independia Law Firm AB
irglobal.com/advisor/claes-ottosson

Magdalena Dymkowska MDDP Michalik Dłuska Dziedzic i Partnerzy
irglobal.com/advisor/magdalena-dymkowska

Thomas Paoletti Paoletti Legal Consultants LLP
irglobal.com/advisor/thomas-paolettiMichael Einbinder Einbinder & Dunn LLP
irglobal.com/advisor/michael-einbinder

Florbela Pires CLAREIRA
irglobal.com/advisor/florbela-pires

Edmundo Escobar Escobar y Gorostieta, S.C Abogados
irglobal.com/advisor/edmundo-escobar

Lou Robinson Alliance Trust Company
irglobal.com/advisor/lou-robinson

Rui Esperança Bind
irglobal.com/advisor/rui-esperanca

Nina Rodriguez Webster LP
websterlp.com/people/nina-rodriguez

Vera Figueiredo CLAREIRA
irglobal.com/advisor/vera-figueiredo

Steven De Schrijver Agio LEGAL
irglobal.com/advisor/steven-de-schrijver

Kaitlin Flinn CCK Strategies, PLLC
irglobal.com/advisor/kaitlin-flinn

Andrew Stebbins Buckingham, Doolittle & Burroughs, LLC
irglobal.com/advisor/andrew-stebbins

Elaine Gylling Independia Law Firm AB
irglobal.com/advisor/elaine-gylling

Stephen Le Le & Tran Law Corporation
irglobal.com/advisor/stephen-leStuart Hendry HecoAnalytics Ltd
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Dr. Jesszika Udvari Buzády & Udvari Law Firm
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Eric Kunkel CCK Strategies, PLLC
irglobal.com/advisor/eric-kunkel

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IR Global has both invested heavily and collaborated with members throughmultiple initiatives. To address human rights violations, illegal extractivism
and providing the tools/resources to Indigenous peoples on the frontlines ofprotecting the environment.
We are proud to lead this program in support of Treesistance platform and gratefulto the 6 member firms who joined us in this initiative. This is great example of the
network making meaningful impact and leaving a legacy that goes beyond business.

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