The Law Lounge

20/08/2024

Signing a Contract? Read This First!

Before you commit yourself, be sure you’re not missing out on these crucial tips:

1) Read it carefully. Do not glance through or scanned through. Also, get a legal eye to read through it for you. A lawyer would spot clauses you can
never spot.

2) Identify your rights and obligations clearly.

3) Take several looks at the penalty clause. What loss
will your business suffer if it fails to perform its obligations?

4) Be sure that what is written down reflects the terms of negotiation.

5) Make sure there is a termination or exit clause as
well as a dispute resolution clause.

6) If there is a clause in the contract that refers to
another document, please read that document thoroughly to make sure there are no conflicts between
that document and the contract you are signing.

7) Complete all blank spaces. You leave spaces blank
in a contract at your own risk. The other party can fill
those blanks after you have signed and you will have
yourself to blame for inputs that were not part of the
initial agreement.

Contracts can be tricky—stay smart and protect yourself! Need help?

Reach out to us for expert advice.

Contact the Law Lounge today.
0772972856

14/08/2024

The Government is considering two tax proposals in its efforts to amend the personal income tax structure, President Ranil Wickremesinghe said.

Stating that the Government is currently looking at making adjustments to the tax thresholds, intending to provide relief to taxpayers, the President said that Sri Lanka is currently entertaining two proposals.

“We are now in the next stage of discussing tax thresholds. We have had a strong economic performance this year and hope to maintain it next year. We are considering adjustments to the personal income tax structure to provide relief to taxpayers,” the President said.

The first proposal has been put forward by the Treasury, while a counter proposal has also been tabled by the International Monetary Fund (IMF), the President revealed.

“The Treasury’s proposal maintains a tax-free threshold of Rs. 1.2 million, widens the tax band from Rs. 500,000 to 720,000, and keeps the top tax rate at 36%,” President Wickremesinghe detailed.

The counter proposal by the IMF proposes that the tax-free threshold remains at Rs. 1.2 million as well, the President said. “But the first tax band is widened from Rs. 500,000 to 1 million rupees, shifting all tax bands up by 500,000 rupees, with subsequent bands remaining at Rs. 500,000 rupees and the top tax rate remains at 36%,” he said.

“We are evaluating these proposals and working towards one that provides relief,” he added.

President Wickremesinghe stated that he is considering the IMF proposal, but the final decision will be based on what is best for the country and its people.

The President made these remarks delivering the keynote address at the University Lecturers’ Conference held in Colombo on Wednesday. (Newswire)

13/08/2024

Useful tips for startups, to help ensure your business operates within the bounds of the law.

1. Select a structure ( eg- sole proprietorship, partnership or a limited liability company ) that aligns with your business goals, risk tolerance and compliance requirements.

2. ⁠Register your business with the appropriate government authorities.

3. ⁠indemnify and obtain any licenses, permits or certifications required to operate your business legally in your industry.

4. ⁠secure your intellectual property rights by registering trademarks, copyrights and patents as necessary to protect your brand, products and inventions.

5. ⁠use well drafter contacts to formalize relationships with employees, contractors, suppliers, customers and partners, specifying rights, obligations and dispute resolution mechanisms.

6. ⁠Keep accurate and upto date corporate records, including meeting minutes, reductions, financial statements and other important documents, to demonstrate compliance with legal requirements and corporate covernance standards.

7. ⁠Stay informed about changes in relevant laws, regulations and industry standards that may affect your business , and seek legal advise from qualitied legal professionals to address compliance issues and mitigate risks proactively

Protect your business with our expert guidance.
Contact The Law Lounge today.

📱0772972856

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