Further Statement Re US Budget Reconciliation Bill
Burford Capital (BUR) provided an update regarding proposed tax provisions for litigation finance in the US Senate's draft budget reconciliation bill. The revised bill includes a reduced tax rate of 31.8% (down from 40.8%) and a withholding tax rate of 15.9% on gains (reduced from 50% of tax rate on gross proceeds).
According to the Joint Committee on Taxation, the expected tax revenue from these provisions over the next decade has been reduced to $1.4 billion, down from previous estimates of up to $3.5 billion. The company notes that the legislation remains under Senate debate, with uncertain procedural and political steps ahead. Burford states it cannot yet assess the potential impact of these provisions on its future tax position if enacted.
Burford Capital (BUR) ha fornito un aggiornamento sulle disposizioni fiscali proposte per il finanziamento del contenzioso nel disegno di legge di riconciliazione del bilancio del Senato degli Stati Uniti. Il testo rivisto prevede un tasso d'imposta ridotto al 31,8% (in calo rispetto al 40,8%) e un tasso di ritenuta del 15,9% sui guadagni (ridotto rispetto al 50% del tasso fiscale sui proventi lordi).
Secondo il Comitato Congiunto per la Tassazione, le entrate fiscali previste da queste disposizioni nei prossimi dieci anni sono state ridotte a 1,4 miliardi di dollari, rispetto alle stime precedenti fino a 3,5 miliardi. L’azienda sottolinea che la legislazione è ancora in discussione al Senato, con passaggi procedurali e politici incerti da affrontare. Burford afferma di non poter ancora valutare l’impatto potenziale di queste disposizioni sulla sua futura posizione fiscale qualora venissero approvate.
Burford Capital (BUR) proporcionó una actualización sobre las disposiciones fiscales propuestas para la financiación de litigios en el proyecto de ley de conciliación presupuestaria del Senado de EE.UU. El proyecto revisado incluye una tasa impositiva reducida del 31,8% (desde el 40,8%) y una tasa de retención del 15,9% sobre las ganancias (reducida desde el 50% de la tasa impositiva sobre los ingresos brutos).
Según el Comité Conjunto de Tributación, los ingresos fiscales esperados de estas disposiciones durante la próxima década se han reducido a 1,4 mil millones de dólares, desde estimaciones previas de hasta 3,5 mil millones. La compañía señala que la legislación sigue en debate en el Senado, con pasos procedimentales y políticos inciertos por delante. Burford indica que aún no puede evaluar el posible impacto de estas disposiciones en su futura posición fiscal si se promulgan.
Burford Capital (BUR)는 미국 상원의 예산 조정 법안 초안에 포함된 소송 금융에 관한 세금 조항에 대해 업데이트를 제공했습니다. 수정된 법안에는 세율이 31.8%로 인하되었으며(기존 40.8%에서), 이익에 대한 원천징수세율은 15.9%로 낮아졌습니다(총수익에 대한 세율의 50%에서 감소).
공동 세무 위원회에 따르면, 향후 10년간 이 조항들로 인한 예상 세수는 14억 달러로 감소했으며, 이전 추정치인 최대 35억 달러에서 크게 줄었습니다. 회사는 이 법안이 아직 상원에서 논의 중이며, 절차적 및 정치적 불확실성이 남아 있다고 밝혔습니다. Burford는 해당 조항이 시행될 경우 미래 세무 상황에 미칠 잠재적 영향을 아직 평가할 수 없다고 전했습니다.
Burford Capital (BUR) a fourni une mise à jour concernant les dispositions fiscales proposées pour le financement du contentieux dans le projet de loi de réconciliation budgétaire du Sénat américain. Le projet révisé inclut un taux d'imposition réduit à 31,8% (contre 40,8%) ainsi qu'un taux de retenue à la source de 15,9% sur les gains (réduit par rapport à 50% du taux d'imposition sur les produits bruts).
Selon le Comité mixte de la fiscalité, les recettes fiscales attendues de ces dispositions au cours de la prochaine décennie ont été réduites à 1,4 milliard de dollars, contre des estimations antérieures allant jusqu'à 3,5 milliards. La société souligne que la législation est toujours en cours de débat au Sénat, avec des étapes procédurales et politiques incertaines à venir. Burford indique qu'elle ne peut pas encore évaluer l'impact potentiel de ces dispositions sur sa future situation fiscale si elles sont adoptées.
Burford Capital (BUR) gab ein Update zu den vorgeschlagenen Steuerregelungen für Litigation Finance im Entwurf des Haushaltsversöhnungsgesetzes des US-Senats bekannt. Der überarbeitete Entwurf sieht einen reduzierten Steuersatz von 31,8% (statt 40,8%) sowie einen Quellensteuersatz von 15,9% auf Gewinne (reduziert von 50% des Steuersatzes auf Bruttoerlöse) vor.
Dem Gemeinsamen Steuerausschuss zufolge wurden die erwarteten Steuereinnahmen aus diesen Regelungen in den nächsten zehn Jahren auf 1,4 Milliarden US-Dollar gesenkt, zuvor wurden bis zu 3,5 Milliarden geschätzt. Das Unternehmen weist darauf hin, dass die Gesetzgebung weiterhin im Senat diskutiert wird und noch unklare prozedurale und politische Schritte anstehen. Burford erklärt, dass es die potenziellen Auswirkungen dieser Regelungen auf seine zukünftige Steuerposition bei Verabschiedung noch nicht abschätzen kann.
- Proposed tax rate reduced to 31.8% from initially proposed 40.8%
- Withholding tax rate decreased to 15.9% of gains from previous 50% of tax rate on gross proceeds
- Expected government tax revenue reduced to $1.4B from $3.5B, suggesting lower industry impact
- Uncertainty regarding final bill approval and implementation
- Company unable to assess impact on future tax position
- New tax provisions could still significantly affect litigation finance business model
In revisions to the bill over the weekend, the proposed tax rate has been reduced to
In response to those changes, the nonpartisan Joint Committee on Taxation reduced its estimates of the expected tax revenue the provisions could generate over the next decade to
The Senate continues to debate the legislation, and there remain a number of uncertain procedural and political steps both for the litigation finance provisions and the bill itself before enactment could occur. The outcome of those steps, including the failure to enact the provisions at all, remains unpredictable. Moreover, as discussed in the prior statement, Burford is not yet able to assess the impact of those provisions, if enacted in their current form, on its future tax position.
About Burford Capital
Burford Capital is the leading global finance and asset management firm focused on law. Its businesses include litigation finance and risk management, asset recovery and a wide range of legal finance and advisory activities. Burford is publicly traded on the New York Stock Exchange (NYSE: BUR) and the London Stock Exchange (LSE: BUR) and works with companies and law firms around the world from its global network of offices.
For more information, please visit www.burfordcapital.com.
This press release does not constitute an offer to sell or the solicitation of an offer to buy any ordinary shares or other securities of Burford.
This press release does not constitute an offer of any Burford private fund. Burford Capital Investment Management LLC, which acts as the fund manager of all Burford private funds, is registered as an investment adviser with the US Securities and Exchange Commission. The information provided in this press release is for informational purposes only. Past performance is not indicative of future results. The information contained in this press release is not, and should not be construed as, an offer to sell or the solicitation of an offer to buy any securities (including interests or shares in any of Burford private funds). Any such offer or solicitation may be made only by means of a final confidential private placement memorandum and other offering documents.
Forward-looking statements
This press release contains "forward-looking statements" within the meaning of Section 27A of the US Securities Act of 1933, as amended, and Section 21E of the US Securities Exchange Act of 1934, as amended, that are intended to be covered by the safe harbor provided for under these sections. In some cases, words such as "aim", "anticipate", "believe", "continue", "could", "estimate", "expect", "forecast", "guidance", "intend", "may", "plan", "potential", "predict", "projected", "should" or "will", or the negative of such terms or other comparable terminology, are intended to identify forward-looking statements. Although Buford believes that the assumptions, expectations, projections, intentions and beliefs about future results and events reflected in forward-looking statements have a reasonable basis and are expressed in good faith, forward-looking statements involve known and unknown risks, uncertainties and other factors, which could cause Burford's actual results and events to differ materially from (and be more negative than) future results and events expressed, projected or implied by these forward-looking statements. Factors that might cause future results and events to differ include, among others, those discussed in the "Risk Factors" section of Burford's Annual Report on Form 10-K for the year ended December 31, 2024 filed with the US Securities and Exchange Commission on March 3, 2025. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements contained in the periodic and current reports that Burford files with or furnishes to the US Securities and Exchange Commission. Many of these factors are beyond Burford's ability to control or predict, and new factors emerge from time to time. Furthermore, Burford cannot assess the impact of each such factor on its business or the extent to which any factor or combination of factors may cause actual results and events to be materially different from those contained in any forward-looking statement. Given these uncertainties, readers are cautioned not to place undue reliance on Burford's forward-looking statements.
All subsequent written and oral forward-looking statements attributable to Burford or to persons acting on its behalf are expressly qualified in their entirety by these cautionary statements. The forward-looking statements speak only as of the date of this press release and, except as required by applicable law, Burford undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
View original content:https://www.prnewswire.com/news-releases/further-statement-re-us-budget-reconciliation-bill-302494222.html
SOURCE Burford Capital Limited
FAQ
What are the new proposed tax rates for Burford Capital (BUR) in the US Senate's budget reconciliation bill?
How much tax revenue is expected from the litigation finance provisions in the US Senate bill?
What is the current status of the US Senate's budget reconciliation bill affecting Burford Capital?
How will the new tax provisions affect Burford Capital's future tax position?
What changes were made to the original tax proposal in the US Senate bill?
