Changing Inequalities in the Diamond Industry


"I'm extremely optimistic about the future of this industry," says Paul Ekon, an emerging talent and fresh voice in the newly revitalized world of the diamond business. For an industry that has been hit harder than many during the global downturn, these are encouraging words indeed. While all businesses can be portrayed as political pawns, it's hard to imagine one more highly charged than that of the South African diamond community.
What started as frontier prospecting in the 1870's has grown into a multi-billion dollar industry helping to form the economic and political backbone of many South African communities. Diamonds, once so concentrated and monopolized, are now host to a much more diverse network of entrepreneurs and local governments, trying, especially in the last decade, to help communities better benefit from a still tightly controlled marketplace. "Although several companies still essentially control the majority of the business, things are beginning to evolve socially, beyond just profit margins – but it takes time. Since Sierra Leone and the illegal trade and traffic of precious stones have been exposed globally, there has been a new sense of social responsibility emerging in this industry." What Ekon is referring to is the illegal ‘blood diamond' trade which warring guerilla factions have used to terrorize and decimate local communities for decades. But, since the Kimberley Process was established to certify fair-trade diamonds in 2003, things have been changing for the better, although many in the industry feel that much more needs to be done.
The BEE, or the Black Economic Empowerment initiative has been trying to redress the inequality issues inherent in the mining industry for the last decade. Since 2001, black representation in management positions of the industry has more than doubled, and according to Mining Weekly is close to 30%. Of course the recession has slowed the initiatives for both women and blacks down, but now things are starting to rebound. Sandra Burmeister, CEO of Landelahni, in speaking to Mining Weekly, recently suggested that "training and development should start at the graduate level" and "skills development and employment equity are both fundamental to corporate success."
But, recently it was also disclosed that black ownership in the mining industry is still far below targets set out five years ago, leading some to speculate that the diamond industry, along with others might be nationalized. The balance of business, community and social responsibility is still difficult to achieve, especially in such a lucrative and tightly controlled sector.
Paul Ekon, having himself set up charities to help the poor communities of Soweto, believes more companies need to be held accountable for helping their local environment; this sentiment was also echoed by an undisclosed industry insider, commenting on a leaked document (about industry inequality) in a recent Miningmx news piece, "Companies are required to prove their own efforts in improving a mining community. This has led to many companies doing the same things instead of pooling resources and addressing a wider variety of community needs."
What this means is that, despite the recession, the diamond industry must get back to the growth it's seen in the last six months, and at the same time, continue working towards its equality initiatives which began several years ago. There must be a way to positively impact on the immediate environment and continue to prosper in this evolving industry, but like all businesses, it's a balancing act that takes commitment from companies, to both profit and social responsibility in equal measure.

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Best Insurance Company Ratings - The Basics of Health, Auto and Life


Knowing the best insurance company ratings is integral to buying the best possible policies to cover your health, auto and life. It?s not always the cheapest rate that will garner the best policy. Of course we?d all like to spend less money on the necessities of life and more on the fun things but attention needs to be given to the qualifications of the companies and the adequacy of the coverage being supplied.

What Do Rating Companies Look For?

There are three major companies or services that are in the business of rating insurance companies. Independent rating agencies, these financial analysts make sure that the insuring company is financially sound and will be able to reliably meet its obligations when claims are filed. The rating process measures each company?s overall strengths, evaluating ability to pay dividends, meet liabilities and, acting in the role of prophet, projects the company?s future business prospects.

1. A.M. Best Company

Is the best known and most widely recognized of these rating companies. Publishing over fifty information products to do with insurance companies and the insurance industry they are experts in their field. An insurance company deserving of a A++ from A.M. Best Company has shown superior performance and ?has a very strong ability to meet its obligations to policyholders over a long period of time. Their grading system covers the gamut of possibilities rounding out with an F which signifies that the company in question has been placed under an order of liquidation by the courts.

2. Standard and Poor?s

Is a well recognized name with a reputation inspiring confidence in its judgments. S & P ranks the claim-paying abilities of over 300 insurance organizations worldwide in addition to its other more widely recognized data monitoring. They grant a superior company, one able to reliably meet its financial obligations the rating of AAA. Their lowest form of rating is an R and warns the consumer that the company in question is under regulatory action.

3. Moody?s or Moody?s Ratings

Began ranking the economic viability of financial various institutions in 1909. They do not deem a company to be superior but their highest vote of confidence in the form of an Aaa is given to that insurer who they find displays exceptional financial security. C is the lowest rating given and denotes a company that displays poor changes of financial security.

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Appraised Value: The Ups & Downs Of How Much A House Is Worth.

Determining Fair Market Value is an eternal struggle and major balancing act. That’s because buyers want a house to appraise on the low side—to keep the purchase price down. While sellers want the same house to appraise on the high side—to make the sale price higher. And then you’ve got the owners of the house—who also want the appraisal to be on the low side, in order to keep the property taxes down.

So with all these different agendas and points of view, how is the fair market value of a real estate property actually determined?

Once a year, your county sends all area homeowners official notices that put a dollar value on their property. And property taxes are based on those dollar values. But before those notices get sent out, a long, detailed process usually takes place. First, the land is valued as if it’s vacant—an empty lot, in other words. Then any improvements are described and measured. Improvements consist of the house and any other structures, pools, sheds, garages, and so forth. Next, most counties check the Marshall Valuation Service Cost Guide. It’s a standardized nationwide guide for determining the value of the cost per square foot to build a building that fits the description of the improved property. Next, if the house isn’t brand new, the replacement cost is considered, as well as depreciation; the year the house was constructed and the condition of the property are factors here. Appraisers then must take the critical step of comparing the value of the house with recent selling prices of similar homes in the neighborhood. At this point, the appraisal might stand “as is”—or it might be adjusted upward or downward.

Market Value is a theory, in other words—not an unchanging fact.

In a perfect world, you have to have willing buyer and a willing seller. Neither is under duress. Both are in a position to maximize gain and are trying to do this. But in the real world, things are rarely that simple and equally balanced. Which is why people feel differently about the appraisal value of a house. It really depends how strong their position is as a buyer or seller.

Does the local economy come into it at all? You bet it does.

Ask a successful Realtor about that! He or she will tell you they’ve noticed that the Rio Grande Valley’s fast-growing economy is attracting people from other areas who consider real estate here a bargain. That helps fuel increases in property values.

So—now you know where that Grand Total comes from.

You’re armed with the information you need to make a better house-buying decision. For instance, you can understand how two virtually identical houses that are in two different neighborhoods could be very far apart in price and appraised value. And why your choice of the right house in the right neighborhood could be worth a not-so-small fortune to you right now—and years down the road.

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UK Taxation Treatment For Rental Income

Property Rental Income for Individuals

UK Rents and licence's are regarded as UK land and property. Land and property income is all income deriving from such property as if it were a trade. Therefore this is calculated as all income being assessed in the tax year on an "accruals" basis. This means that income is taxed on an "arising" basis in the year of assessment, i.e. income that is due in the year, and not necessary income that is actually paid by the tenant.

For example if a tenant per the tenancy agreement is obliged to pay ?495 a month, the taxable income is ?5,940 a year, irrespective of the fact the tenant might say pay late for their rent.

Since rental income is an assessment like trade, all income from the different rental properties are pooled together, creating one income stream. Hence profits and losses of the same UK properties are amalgamated together to create the net profit or loss. In essence losses from one property is netted off against profits of the other.

If they are losses overall after pooling all the properties together, then these losses can be carried forward against future profits of property income. These losses cannot be set off against other income, e.g. employment income or self employed income. However, if losses arise due to "capital allowances" this may then be relieved against other general income.

Capital allowances is the allowable decrease in value of the assets each year that are used in the properties. For e.g. fridges and ovens. Capital allowance rates will be 20% or 25% a year depending on current capital allowance rates.

Expenses are allowed to be deducted if they are incurred "wholly and exclusively" for the purposes of the property.

The treatment for limited companies broadly follows the same rules as for UK individuals.

Income from Overseas Property for UK Residents and Domicile

A UK resident or domiciled person will be taxed on income arising on overseas property and hence must be declared on the UK self assessment return. A tax credit may be given dependant on double taxation treaties for tax suffered in the overseas country on that rental income.

On the other hand, non-resident individuals will not be taxed on overseas property income in the UK. Non domiciled individuals will also not be assessed on this income, but only assessed on a "remittance basis", whereby the income is only taxed if it is brought in the UK.

Recent rules affecting non-domicile individuals that have been resident in the UK for 7 years or more may have to pay tax on there overseas income, unless they choose to pay an annual tax charge of ?30,000, if they wish to adopt the remittance basis in the future.

Income from properties overseas is treated like a separate business to that of income arising from UK properties. Hence losses for overseas properties can only be offset against profits from overseas properties arising in the future and cannot be offset against UK property income.

Rent a Room Relief

This is a relief is given for renting a room in one's main residence. This relief is not available for a property that is not occupied by the owner as their main residence, and hence fully let properties are not eligible for this relief. However, lease holders whose name is on the lease, can claim this allowance for their lodgers, providing of course the lease allows them to take on lodgers.

The relief is not available for commercial lets of the property i.e. home as office, or letting part of the property to a company.

Relief is given up to ?4,250 per tax year. Rents from lodgers at or below this amount is not taxable. This is a total allowance for the property is not apportioned per room. If income is received over and above the rent a room relief, then the amount above is taxable, and is declarable in the self assessment return.

The advantage of the rent a room relief is that it does not affect the principal private residence relief when coming to sell the property. If the property was let outside this allowance, and actual rental income and costs were declared in the normal way, then that element of the property being rented would not be exempt for capital gains tax, and hence capital gains tax would be chargeable on that apportionment of the property. Letting relief however may be available up to a maximum of ?40,000.

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