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Flexitech Group Pty Ltd Novated Lease Information Kit 1 INDEX INTRODUCTION .................................................................................................................................. 3 BACKGROUND .................................................................................................................................... 3 WHAT IS A NOVATED MOTOR VEHICLE LEASE? .......................................................................... 5 SUMMARY OF NOVATED LEASE BENEFITS .................................................................................................5 ANALYSING THE FINANCIAL BENEFITS OF A LEASED MOTOR VEHICLE USING OUR NOVATED LEASE ...............................................................................................................................................................6 NOVATED LEASE SIMULATOR .......................................................................................................................6 ADVANTAGES OF OUR NOVATED LEASE ....................................................................................................7 LEASE OPTIONS ................................................................................................................................. 8 NOVATED FINANCE LEASE ............................................................................................................................8 NOVATED OPERATING LEASE.......................................................................................................................8 SALE LEASE BACK OF EXISTING VEHICLES ................................................................................................8 LEASE INCLUSIONS ........................................................................................................................... 9 VEHICLE SOURCING / PURCHASING ............................................................................................................9 VEHICLE REGISTRATION ...............................................................................................................................9 COMPREHENSIVE INSURANCE .....................................................................................................................9 VEHICLE SERVICING AND MAINTENANCE ...................................................................................................9 ROADSIDE ASSISTANCE .............................................................................................................................. 10 FUEL ............................................................................................................................................................... 10 NOVATED LEASE PROTECTION INSURANCE ............................................................................................ 11 ADDITIONAL INFORMATION ........................................................................................................... 12 CREDIT APPROVALS ....................................................................................................................................12 LEASE RENTAL PAYMENTS .........................................................................................................................12 TERMINATION OF EMPLOYMENT OPTIONS ............................................................................................... 12 WHAT HAPPENS AT THE END OF THE LEASE TERM? ..............................................................................12 EXCESS KILOMETRE CHARGES..................................................................................................................13 FAIR WEAR AND TEAR (OPERATING LEASE ONLY) ..................................................................................13 GOODS AND SERVICE TAX (GST) ...............................................................................................................14 FRINGE BENEFITS TAX (FBT) ......................................................................................................................14 METHODS OF FBT CALCULATION ...............................................................................................................15 THE STATUTORY FORMULA METHOD ........................................................................................................15 RECOGNITION BY THE AUSTRALIAN TAXATION OFFICE .........................................................................16 LUXURY CAR LEASES (GST EXCLUSIVE) ...................................................................................................16 HOW TO OBTAIN A NOVATED LEASE ........................................................................................... 18 EXPECTED PROCESS TIME FRAMES ............................................................................................ 19 2 8b1cf4e2-29dc-4cde-9023-afcfc2b7588f.doc INTRODUCTION FLEXITECH GROUP PTY LTD has provided you with the opportunity to obtain a motor vehicle of your choice, under a novated lease agreement, subject to the type of vehicle selected complying with Flexitech Group Pty Ltd"s motor vehicle policy and satisfactory completion of the necessary credit approval processes. The cost of the vehicle will be reflected within your remuneration package via a salary sacrifice arrangement, and paid from your pre-tax salary. Subject to eligibility criteria, additional vehicles may be included within your employment package. We are delighted that FLEXITECH GROUP PTY LTD has chosen our company as an approved provider of novated leasing services. Our Novated Lease has been tailored to meet the specific requirements of both you and FLEXITECH GROUP PTY LTD, and will operate in conjunction with your normal salary packaging arrangements. As agreed with FLEXITECH GROUP PTY LTD, eligible employees / contractors who elect to finance a new vehicle with us will benefit from our competitive interest rates as well as discounted vehicle purchasing, maintenance and operating costs at "fleet prices". By selecting a Fully Maintained lease option, all your vehicle operating expenses can be covered including insurance, registration, servicing and maintenance, in order to provide you with lower overall motoring costs. This kit has been designed to provide you with information on Novated Leasing, to assist you with your decision on the most suitable type of vehicle lease for your needs and to facilitate the prompt processing of your application. If you require additional information at any stage regarding your lease, please contact the our Novated Lease Call Centre on: Phone: Fax: E-mail: (03) 9882 9899 (03) 9882 6454 email@example.com BACKGROUND Fleet Australia is a fleet management specialist at the forefront of the Australian fleet leasing and fleet management industry. We provide a diverse range of services to our client base, which includes many of Australia"s large private and public sector corporations. Our origins in Australian fleet leasing and fleet management lie in the formation of Leaseway Transportation Pty Limited in 1986, by its founders who had prior experience in the New Zealand vehicle rental business as far back as 1963. In 1988 Leaseway was appointed the exclusive Fleet Manager for CBFC, the finance company subsidiary of Commonwealth Bank of Australia. That appointment led to the establishment of a business relationship that continues today. Leaseway brought fleet management expertise to the joint venture, whereas CBFC brought financing capability for the underlying leases. 3 8b1cf4e2-29dc-4cde-9023-afcfc2b7588f.doc In 1996, the Commonwealth Bank formed Fleet Care Services Pty Limited (FCS) on acquiring some of the vehicle fleet management business of TNT Australia. This business was acquired independently of the Leaseway/CBFC joint venture. In 1997, the Commonwealth Bank acquired Leaseway Transportation Pty Limited from its founding owners, and with it the principal operating company Leaseway Australia Pty Limited. In 2000, Leaseway Australia Pty Limited changed its name to Commonwealth Fleet Lease Pty Limited. The Commonwealth Bank ran the two operating businesses (ie FCS and Leaseway Australia Pty Limited) through joint management and facility sharing until 2001 when the operations of FCS were transferred into Commonwealth Fleet Lease. During our near 20-year history, we have established ourselves as one of the leading fleet leasing and fleet management providers in the Australian market. Our range of services is comprehensive, encompassing both operating leasing and finance leasing, as well as a full range of fleet management including the management of fuel, maintenance, FBT, tolls and infringements. We have earned an enviable reputation for our novated leases provided to corporate clients, and for our superior customer service in all aspects of operations. On 4 June 2004, the Commonwealth Bank sold its shareholding in the highly successful fleet management business, Commonwealth Fleet Lease, to S.G. Fleet Services Australia Pty Ltd, a subsidiary of Super Group Limited, a company listed on the Johannesburg Stock Exchange. An Australian equity consortium, including Colonial First State Private Equity, is a shareholder in S.G. Fleet Services Australia Pty Ltd. Our ultimate parent, Super Group, operates an integrated supply chain management business whose primary operating activities comprise supply chain management, fleet solutions, cross border transport, motor vehicle dealerships and the wholesale and retail of automotive parts both in South Africa and abroad. Super Group is one of the top 30 industrial companies and 53rd largest company, measured by market capitalisation, listed on the JSE Securities Exchange. At 30 September 2003, based on the six months unaudited results, Super Group"s total assets exceeded R3.7 billion and half-year revenues exceeded R3.3 billion, employing about 8,000 people. Further information about Super Group can be found on their web sites, www.supergrp.com and www.fleetafrica.com. The June 2004 change in ownership represented an exciting phase in the history of our company and provides a new basis for enhanced fleet management solutions for clients: Clients benefit from the intellectual property, knowledge and investment of a parent having specialist fleet management and related supply chain expertise. The Commonwealth Bank remains the principal financier for the underlying leases through its specialist asset finance subsidiary, CBFC Limited, thus continuing to offer highly competitive financing for our clients. Super Group has committed to expand its investment in Fleet Australia, including for development of state of the art systems technology. The business has retained its existing management team and all existing employees and offices, thereby providing continuity of service delivery. 4 8b1cf4e2-29dc-4cde-9023-afcfc2b7588f.doc The Commonwealth Bank has retained the opportunity to refer its Institutional, Corporate and Business clients having fleet leasing and fleet management needs exclusively to us. The Commonwealth Bank has committed to the long-term management of its own "tool of trade" and novated lease vehicle fleets (2,500 vehicles) by Fleet Australia. We are extremely excited about the future. We have an owner who is committed to expanding the product range and views fleet management as integral to its business. We intend to continue to grow while retaining our core values that focus on excelling in customer service. WHAT IS A NOVATED MOTOR VEHICLE LEASE? Essentially, a novated lease is an arrangement entered into by three parties - Employer / Employee Contractor / Financier - which enables the employee / contractor to lease a car of their choice within a negotiated salary packaging arrangement. Under the more specific terms of the agreement, the employee / contractor leases the vehicle from the financier under either an operating or finance lease. In turn, and with the consent of the financier, the employee / contractor novates the lease to their employer. Under this "novation", the obligation to meet lease rentals and other conditions of the lease is transferred to the employer for the term of the novation agreement. The employer in turn usually puts into place arrangements with the employee / contractor to deduct payments from the employee / contractor gross remuneration under agreed salary sacrifice arrangements. During the course of the arrangement, the employee / contractor enjoys use of the motor vehicle as provided for in the lease. Upon advice to us that employment with the employer has ceased, the novation expires immediately, with all future obligations under the lease agreement reverting to the employee / contractor. By its very nature, novated motor vehicle leasing is a central component of personal financial planning, which varies according to the unique legal, financial and taxation profile of each person. Our comments regarding novated leasing are general in nature and should not be relied upon as a substitute for professional personal advice or as a basis for formulating personal financial planning decisions. Because of the frequency of legislative changes, we recommend that you consult an independent expert (eg: Accountant or Financial Adviser) when making these decisions. SUMMARY OF NOVATED LEASE BENEFITS Vehicles may be financed net of GST which may reduce lease rentals (depending on Flexitech Group Pty Ltd"s ability to claim GST Input Tax Credits). You may lease the vehicle of your choice (new or used), subject to employer approval and term and kilometre requirements. Reduced lease payments and FBT liability as vehicles are sourced by us at discounted prices. Professional control and monitoring of maintenance and repairs. Lease payments normally fixed for the term of the lease. Flexible terms in the use of the vehicle. The lease is portable if you leave Flexitech Group Pty Ltd (subject to any new employer"s policies and some lease inclusions may require removal). We can assist in disposing of your existing owned vehicle. Access to our considerable expertise. 8b1cf4e2-29dc-4cde-9023-afcfc2b7588f.doc 5 Depending on individual circumstances, employees / contractors can build "notional" equity in the vehicle (finance lease) whilst also getting the tax benefits of salary packaging their motor vehicle. ANALYSING THE FINANCIAL BENEFITS OF A LEASED MOTOR VEHICLE USING OUR NOVATED LEASE If you like the idea of a novated lease arrangement but are unsure of the financial benefits, the table overleaf may be helpful. This table incorporates all the usual expenses associated with leasing or buying a car, including FBT liability and operating costs. As you can see, the end result confirms the benefits of remuneration packaged leasing across common scenarios. General assumptions of the example overleaf: Financing costs assume a four-year term, 35% residual value and an interest rate of 9.00% p.a. All vehicles are assumed to travel 25,000km p.a. (11% FBT fraction). Annual Operating Costs are assumptions only. Tax rates for 2003/2004 are used and include a Medicare levy of 1.5%. Financing costs exclude any statutory charges that may apply in each state. FBT gross-up factor of 2.1292 has been used. The novated lease finance costs are net of GST due to the input tax credit on the purchase of the vehicle. NOVATED LEASE SIMULATOR For additional information regarding Novated Leasing, Fringe Benefits Tax, Goods and Services Tax or Post Tax Employee / contractor Contributions consult our Website at www.fleetaustralia.com.au Go to "Products", click on "Novated Leasing" for more information and then select the Novated Lease "Calculator". This will enable you to calculate the advantages of a Novated Lease for yourself. 6 8b1cf4e2-29dc-4cde-9023-afcfc2b7588f.doc ADVANTAGES OF OUR NOVATED LEASE Employee's annual gross salary package $40,000 Private Purchase Vehicle purchase price (inc GST) Interest Rate Lease Term Financed costs per annum Operating costs Total costs $25,000 9% 48 $5,598 $5,500 $11,098 Novated Lease $25,000 9% 48 $5,598 $5,500 $11,098 $80,000 Private Purchase $35,000 9% 48 $7,837 $5,500 $13,337 Novated Lease $35,000 9% 48 $7,837 $5,500 $13,337 $100,000 Private Purchase $55,000 9% 48 $12,316 $5,500 $17,816 Novated Lease $55,000 9% 48 $12,316 $5,500 $17,816 Less GST input tax credit on vehicle costs Pre-Tax cost to salary package After tax salary required FBT payable Total pre-tax cost to salary package Equivalent cost from pre-tax income Annual pre-tax savings with Novated Lease Residual value Plus GST at 10% Total residual value $8,750 $8,750 $16,202 $11,098 $1,009 $10,089 $13,337 $2,840 $12,929 $25,898 $1,212 $12,125 $17,816 $3,976 $16,101 $34,594 $1,620 $16,196 $6,248 $22,444 $3,273 $7,955 $795 $8,750 $12,250 $12,250 $9,797 $11,136 $1,114 $12,250 $19,250 $19,250 $12,150 $17,500 $1,750 $19,250 Whole of life pre-tax finance & operating cost Pre-tax residual cost Total pre-tax cost Total savings (pre-tax) whole of life + residual Total savings (after tax) whole of life + residual $64,806 $12,774 $77,580 $51,716 $12,774 $64,490 $103,591 $23,786 $127,377 $64,402 $23,786 $88,188 $138,375 $37,379 $175,754 $89,775 $37,379 $127,154 $13,090 $39,189 $48,600 $8,967 $20,182 $25,029 7 8b1cf4e2-29dc-4cde-9023-afcfc2b7588f.doc LEASE OPTIONS We are able to offer the following lease options to achieve maximum flexibility and convenience: Novated Finance lease Novated Operating lease NOVATED FINANCE LEASE In a finance lease the employee / contractor takes the risk on the residual value of the vehicle similar to that which would apply for a loan. The residual value is structured into the lease, generally at a specific percentage, according to Australian Tax Office guidelines and is payable on the date of lease expiry. A finance lease may be especially attractive to employees / contractors interested in ownership of the vehicle at the end of the lease period. It is not unusual for an employee / contractor to make an offer to buy the vehicle at the nominated value, rather than return the vehicle to the financier for sale and subsequent settlement of any variance from the nominated residual value. Generally a lessee cannot pay a lump sum deposit, such as from the proceeds of the trade-in of an existing vehicle, towards a lease as the establishment of equity, from a tax perspective, contradicts the nature of a lease. Our finance lease residual value guidelines Lease Term 12 Mths 24 Mths 36 Mths 48 Mths 60 Mths Residual Guidelines 65.00% 55.00% 45.00% 35.00% 25.00% NOVATED OPERATING LEASE An operating lease is similar to a car rental arrangement in that we take the risk on the residual value of the vehicle at the end of the lease period. The residual value is determined by us based on our experience in the used motor vehicle market. At the end of the lease the employee / contractor simply returns the vehicle to us and is only responsible for any damage to the vehicle and any end of lease adjustments. This carries no residual value risk to the employee / contractor, however we will consider an offer to purchase the vehicle at the market value at the end of the lease. An operating lease provides the flexibility for those looking to update vehicles at regular intervals, and it is particularly attractive for those who want no residual value obligation at the end of the lease. SALE LEASE BACK OF EXISTING VEHICLES With our Novated Lease you even have the option of selling your (unencumbered) existing vehicle to us and we will lease it back to you via an operating or finance lease. However, the maximum age of the vehicle cannot exceed a stipulated age (as determined by us from time to time) at the end of the lease. [Note – because an Input Tax Credit may not be available on the purchase of your own vehicle, the tax consequences of this type of transaction may vary and not be as favourable as a similar vehicle purchased through a dealer]. 8 8b1cf4e2-29dc-4cde-9023-afcfc2b7588f.doc LEASE INCLUSIONS VEHICLE SOURCING / PURCHASING Due to the volume of vehicles we purchase under finance and management arrangements, we are able to negotiate with our network of Key Dealers on the purchase price of your new vehicle and organise trade-in valuations if you have a vehicle you wish to dispose of. However, proceeds from the trade-in cannot be used to reduce the amount financed in the lease. We normally use around three dealers for each major manufacturer in each capital city to ensure quality service, availability and price. Vehicles supplied by our key dealer are delivered under strict guidelines that we specify. Accordingly, it is our recommendation that you contact us in the first instance to enable us to obtain a competitive purchase price on your behalf. By doing this we may be able to help you to avoid paying too much for your new novated lease vehicle. VEHICLE REGISTRATION Registration and Compulsory Third Party (CTP) Insurance may be included for the full term of the lease including the initial registration of the vehicle. Vehicles are registered in the employee / contractor's name and care-of our address. This ensures that all renewals are forwarded direct to us for payment before distribution to the employee / contractor. COMPREHENSIVE INSURANCE You can comprehensively insure your vehicle in your name through a third party insurer that has a special policy for our novated fleet. This way the insurance premiums can be included within the monthly lease rental and paid for from pre-tax salary. A separate document is available which specifically outlines the benefits of this comprehensive insurance policy. When arranging this insurance, we act as an authorised representative of insurance broker, Marsh Pty Limited. It is not compulsory to accept this offer to include the insurance premium within the lease rental. However all vehicles must be comprehensively insured, with proof of insurance to be provided before vehicle delivery. VEHICLE SERVICING AND MAINTENANCE It is the driver"s responsibility, and in their best interest, to ensure the vehicle is serviced and maintained at the correct intervals, throughout the term of the lease agreement. Each vehicle under a managed maintenance lease is provided with a Driver's Handbook outlining procedures when booking the vehicle in for service at the nearest dealer service outlet. The vehicle is simply booked in for service in the name of Fleet Australia. All service/maintenance work to be completed is identified, and the service centre contacts our Maintenance Control area for the necessary authorisation. Invoices from the service centre are then directed to us for payment. We will be responsible for the cost of all maintenance necessary for the proper and efficient operation of the vehicle (but not refurbishment or repairs occasioned by neglect or abusive operation of the vehicle). 9 8b1cf4e2-29dc-4cde-9023-afcfc2b7588f.doc Under a Fully Maintained lease, all manufacturer's scheduled servicing, normal wear and tear, mechanical repairs including batteries and a specified number of replacement tyres are included within the lease rentals with costs incurred being underwritten by us. The major benefits of selecting a Fully Maintained Lease include: Repairs and maintenance costs are included within monthly lease repayments, as a fixed monthly fee usually paid from pre-tax salary. Costs are underwritten, (guaranteed), by us. No risks of over spending due to high cost repairs. Prevents cost "blow-outs" due to inflation and price increases. Ensures GST input tax credits are captured. Input Tax Credits will be clearly identified and claimed. Actual repair costs are invoiced at Trade pricing structures, which reduces overall vehicle operating costs. All repairs are authorised by qualified Maintenance Controllers. Provides the ability of a fully transportable novated lease, including repairs and maintenance. Eliminates the need for employees / contractors having to physically pay for operating costs and then seek reimbursement for costs incurred. We will structure a Fully Maintained Operating or Finance Lease for a maximum lease period of five years. ROADSIDE ASSISTANCE Membership of Fleet Australia Roadside Assist is provided if the vehicle manufacturer does not provide a similar cover eg. Holden have a roadside assistance program referred to as Holdenwise. Our roadside assistance program is exclusive to our customers, ensuring that your vehicle receives the 24-hour/7 days roadside service with minimum delay. FUEL Fleet Australia/Caltex Fuel Card We have an arrangement with Caltex Australia to offer our customers a Caltex StarCard to purchase fuel for their novated lease vehicle. Fuel purchased on the co-branded StarCard will be provided at the pump price or the discounted "card price", whichever is the lowest. The Caltex card price is a benchmarked daily price that enables Caltex to offer a rebate to their valuable commercial customers. The card price is calculated daily, based on the company"s wholesale price for fuel supplied to service stations and market movements in pump price across any card pricing territory. Generally there is a Caltex card price for each capital city and its surrounding major regional towns. For example, Sydney, Wollongong and Newcastle have the same card price. The StarCard system will automatically compare the difference between your card price discounted rate and the prevailing pump price, and in the unlikely event the pump price is lower than the card price, you will be charged the lower of the two prices. The daily Caltex card price can be obtained by calling StarCard on 1800 819 325 or by visiting the Caltex Australia website at www.caltex.com.au. The Caltex StarCard will provide you access to the largest fuel provider network nationally, with 2,415 sites, compared with the next largest network with only 1,611 sites (source, Caltex Australia, current November 03). 10 8b1cf4e2-29dc-4cde-9023-afcfc2b7588f.doc It should be noted that a standard transaction fee would also apply. Subject to agreement between us and Flexitech Group Pty Ltd, a fuel provision may be established and included within the lease rentals based upon estimated fuel consumption for the vehicle and the kilometres to be travelled under the lease. An annual reconciliation will be conducted on the provision versus actual fuel used for the vehicle, with any surpluses/shortfalls being to the account of the employer for adjustment to the employee / contractor"s salary. NOVATED LEASE PROTECTION INSURANCE An insurance premium payable to an external insurer can be included within the monthly lease rentals to cover you in the event that you are involuntarily made redundant from your position. If this should occur you have the option to return the vehicle, with the lease break costs up to specified maxima being covered, or retain the vehicle for a period of up to four months, in order to find alternate employment, and have a maximum of three lease rentals paid for you. If you are still unable to locate alternate employment after four months, you may return the vehicle and have the lease break costs, up to specified maxima, paid. This insurance policy also covers the lease break costs to specified maxima in the event of death or total and permanent disablement. When arranging this insurance, we act as an authorised representative of insurance broker, Marsh Pty Limited. Further details regarding this offer can be obtained from the policy document. 11 8b1cf4e2-29dc-4cde-9023-afcfc2b7588f.doc ADDITIONAL INFORMATION CREDIT APPROVALS Approval is subject to our standard terms and conditions. Applicants are assessed on their personal financial position. Decisions are normally available within 48 hours of receipt of an application. Fees and charges may apply. LEASE RENTAL PAYMENTS Your first monthly lease rental will be billed to Flexitech Group Pty Ltd at the time of delivery of your new vehicle and will be due for payment immediately. Each subsequent lease rental will then be billed th at the commencement of each new month and will be due for payment by the 15 of that month. TERMINATION OF EMPLOYMENT OPTIONS Upon our receiving advice that an employee / contractor has ceased their employment, the novation is cancelled and all future obligations, including lease payments become the responsibility of the employee / contractor. Should this situation occur the following options are available: The lease can be re-novated to a new employer (subject to the consent of that employer and ourselves) by execution of a new novation agreement. You may wish to make an offer to purchase the vehicle and terminate the lease. A purchase price can be obtained by contacting us. The vehicle can be returned to us. You will be liable for any shortfall between the lease payout and the market price of the vehicle. The lease may be restructured to reflect the vehicle's new usage patterns. Fees may apply for the above. Please note, should a fuel provision be applicable to your lease, the fuel arrangement will be cancelled upon cessation of employment. WHAT HAPPENS AT THE END OF THE LEASE TERM? Under a Novated Finance Lease You indemnify us for the agreed residual value. You have no right under the lease contract to purchase the vehicle at the lease end. However, in practice, we will consider an offer from you to purchase the vehicle for the residual value. Under a Novated Operating Lease You simply return the vehicle to us, without obligation for the residual value but subject to payment for any excess kilometre charge or unfair wear and tear damage. While you do not have a right to purchase the vehicle, we will consider an offer to purchase the vehicle at the current market value as determined by us. 12 8b1cf4e2-29dc-4cde-9023-afcfc2b7588f.doc EXCESS KILOMETRE CHARGES A vehicle"s contracted kilometres is one of the factors used to determine the total lease rental to be charged as distance/usage affects both the cost of maintenance and the "second hand" value of the vehicle. If your vehicle travels in excess of the lease kilometres you may be liable for an excess kilometre charge at the end of the lease period. This excess kilometre charge will simply represent the decreased value of the vehicle and/or the additional maintenance required as a result of the vehicle travelling more kilometres than originally anticipated. The excess kilometre rate is defined in the lease agreement. If, after a reasonable evaluation period, it appears as though your vehicle is likely to either exceed or under achieve the anticipated lease kilometres, it is possible to restructure your lease to more correctly reflect the revised usage patterns (subject to a restructure fee). It should be noted however that any under achievement of anticipated kilometres might also affect the FBT liability in respect of your vehicle. FAIR WEAR AND TEAR (OPERATING LEASE ONLY) When returning a vehicle to us at the end of an operating lease, you will be liable for any damage to the vehicle through neglect or abuse. The only exceptions to this will be for minor car park dents, stone chips or scratches that have a total estimated repair cost of less than $350. These will be considered as being fair wear and tear. Broken or missing parts such as windscreens, mirrors, aerials, wheel covers, spare wheels and tools are considered as being unfair wear and tear regardless of the values involved. The lease contract defines the condition in which vehicles should be returned and what constitutes "Fair Wear and Tear". We promote the Australian Fleet Lessors Association (AFLA) "Fair Wear and Tear" Guide as a reference document to aid in the understanding of this important area. Copy of this document is available on our website (www.fleetaustralia.com.au). 13 8b1cf4e2-29dc-4cde-9023-afcfc2b7588f.doc TAXATION ISSUES GOODS AND SERVICE TAX (GST) Lease rentals and lease related charges, will generally be taxable. This means that the financier will charge GST (10%) on normal lease rentals and other fees and charges. GST will also be payable on the residual value and any "payout" of the lease agreement. As ownership of the leased vehicle rests with the financier, the financier claims an input tax credit on the vehicle purchased. This means that the lease rentals and residual value are based on the cost price of the vehicle net of GST. FRINGE BENEFITS TAX (FBT) The employer-provided motor vehicle is one of the few salary package items that continue to attract concessional taxation treatment. FBT is a Federal Government tax imposed on employers on the value of certain fringe benefits that have been provided to employees / contractors (or to their associates) in respect of their employment. The FBT year runs from 1 April to the following 31 March. Under the FBT "gross up" rule, the value of the benefit is increased so that it is equivalent to the after tax salary sacrificed amount of the benefit plus FBT at the marginal rate of tax. This is intended to neutralise the tax benefit of receiving either a salary or salary benefit. However, motor vehicles remain an attractive component of a remuneration package because they are concessionally taxed for FBT purposes. The introduction of GST has also impacted the FBT relating to motor vehicles. The intention of the Federal Government is for the impost of GST to be borne by the consumer, which in the case of a novated lease is the employee / contractor. However, the GST liability of employers can impact upon the cost of motor vehicles (and other salary package items) to the employee / contractor. Accordingly, the FBT regime introduces two FBT gross-up rates with the intention of delivering tax neutrality that results from the varying GST liability of employers. Where an employer is not able to claim a GST input tax credit for the costs associated with the vehicle, the original pre-GST FBT gross-up rate will be applied – 1.9417 (type 2 benefit). If the employer is entitled to a GST input tax credit, it will effectively reduce the cost of the benefit by the amount of the GST input tax credit, thereby reducing the tax revenue to the Government. Accordingly, to ensure the Government receives its intended revenue, a higher FBT gross-up rate of 2.1292 will apply (type 1 benefit). The 2.1292 FBT gross-up rate only applies to the calculation of an employer"s FBT liability. Employers will continue to use the 1.9417 gross-up rate when determining an employee / contractor"s "reportable fringe benefit amount" disclosed on their payment summary. Certain employers such as Public Benevolent Institutions are exempt or entitled to claim a rebate on their FBT liability, lowering the cost of the benefit to the employee / contractor. The FBT introduces a cap on the concessional treatment. Generally, a cap of $30,000 on the grossed-up taxable value applies, although a lower threshold of $17,000 exists for certain employees / contractors within the public hospital system and for non-profit hospitals. However, not all items are included when determining whether an employee / contractor"s threshold is exceeded. 14 8b1cf4e2-29dc-4cde-9023-afcfc2b7588f.doc METHODS OF FBT CALCULATION Once you have established the FBT gross-up rate to the employer and its employees / contractors, there are two methods available for calculating FBT for motor vehicles: statutory formula method; or operating cost method. The statutory formula method makes no distinction between private and business use. It is therefore the more appropriate method to use where a vehicle has high private use content. This is especially the case where the employee / contractor"s car never needs to be used for business purposes, and still has a high kilometre use overall. THE STATUTORY FORMULA METHOD The statutory formula values employer-provided cars for FBT purposes at a percentage of their initial cost, inclusive of GST but excluding registration and Stamp Duty. The actual percentages for discounting the car"s value vary according to the total kilometres travelled each year. For example, a vehicle valued at say $30,000, travelling 25,000 kilometres a year, has an FBT value of $3,300 ($30,000 x 11% = $3,300). FBT will be calculated and payable on the grossed-up motor vehicle value of $7,026.36 (3,300 x 2.1292). Therefore: Taxable FBT value = $3,300 FBT calculation = $7,026.36 ($3,300 x 2.1292) FBT payable = $3,407.78 ($7,026.36 x 48.5%) An amount of $6,407.61 ($3,300 x 1.9417) will also be included on the employee / contractor"s payment summary as a reportable fringe benefit. Statutory formula method – applicable discount percentages (based on kilometres travelled) More than 40,000km 7% 25,000 to 40,000km 11% 15,000 to 24,999km 20% Less than 15,000 km 26% 15 8b1cf4e2-29dc-4cde-9023-afcfc2b7588f.doc All operating costs such as fuel, insurance, registration and servicing are not liable for FBT. However, it is also worth noting that any after tax salary payments made by the employee / contractor towards the cost of the vehicle will reduce the FBT liability. For those employees / contractors or their families that travel long distances, the statutory method of calculating FBT is particularly attractive. RECOGNITION BY THE AUSTRALIAN TAXATION OFFICE For some time taxation ruling IT 2509 has set out the income tax and fringe benefits tax implications for novated motor vehicle leases. The ruling has been relied upon by many employers, including governments and financial institutions, for a number of years. Although taxation rulings (particularly TR1999/15) have subsequently been issued which narrow the range of arrangements qualifying for concessional tax treatment as novated leases, our Novated Lease documentation has been approved by the Australian Taxation Office (ATO). Our Novated Lease arrangement generally constitutes "split-full novations" for the purpose of TR1999/15, which ensures that the motor vehicle is deemed to be "held" by the employer for FBT purposes, while the vehicle is perceived to be "owned" by the employee / contractor. The lease payments are not intended to represent income in the employee / contractor"s hands nor is the employee / contractor entitled to claim them as a tax deduction. The employer will normally be entitled to an income tax deduction for the lease rentals and other costs such as fuel, registration, insurance and servicing. Where the employer is registered for GST purposes they should be able to claim an input tax credit on the GST paid on the lease payments. However, some employers because of the nature of their business will not be able to claim an input tax credit (eg. Life Insurance Company). LUXURY CAR LEASES (GST EXCLUSIVE) The luxury car lease rules apply where the cost of the vehicle is greater than the threshold set by the ATO. For the year ending 30 June 2005, the threshold will be $57,009. For tax purposes, luxury car leases are treated as a sale to the employer by the financier with a corresponding loan provided by us. The employer is entitled to depreciation (within limits set by the ATO) and interest deductions during the lease term. Upon termination, expiry, extension or renewal of the lease, a tax liability equal to a balancing charge and a notional loan adjustment may arise. These amounts may increase or decrease taxable income depending upon the facts of the particular case. These do not arise where the employee / contractor purchases the vehicle. The balancing charge is the difference between the "adjusted consideration" on disposal and the tax written down value of the vehicle. The "adjusted consideration" is simply a proportion of the residual value, calculated in accordance with the following formula: Residual Value x Tax Depreciation Limit/Original Cost of Car The notional loan adjustment reflects the fact that the termination amount may differ from the residual value used to calculate the accrued amounts. Some employers may decide to include this amount in the employee / contractor"s package. However, as the amount is not known until the end of the lease, 16 8b1cf4e2-29dc-4cde-9023-afcfc2b7588f.doc it may prove difficult or require mutually acceptable assumptions. This adjustment may produce an allowable deduction for the employer in certain circumstances, for instance, where the market value is greater than the residual value. The amount of the adjustment is the difference between (A) the sum of total lease payments and the market value of the car (at termination) and (B) the sum of the notional loan amount (original cost of the car) and notional interest charges on the lease. Where a lease is renewed or extended, the vehicle"s residual value is calculated. The vehicle is then deemed to be sold and reacquired for this value. The notional depreciation and interest charges still apply and future tax depreciation is worked out on the "adjusted consideration" mentioned earlier. Furthermore, the notional loan adjustment, discussed above, is included in the taxable income of the employer and the financier. The luxury car lease rules are complicated and you should seek your own advice in relation to the tax implications of such leases. 17 8b1cf4e2-29dc-4cde-9023-afcfc2b7588f.doc HOW TO OBTAIN A NOVATED LEASE What do I need to do? 1. Complete the Novated Lease Quotation Request form. If you are unsure of the type of vehicle or lease details you require, please contact us on (03) 9882 9899, for assistance. Forward the completed Quotation Request form to us on either: FAX (03) 9882 6454, or E-MAIL on firstname.lastname@example.com We will provide you with a Lease Quotation and in some circumstances an estimation of total salary sacrifice for the vehicle and lease that you have selected. When you are ready to accept a lease quotation, fax the following to us on (03) 9882 6454: Completed and signed Quote Acceptance - the lower section of the lease Quotation Statement of Personal Financial Position Supporting documentation eg council rates notice & current home loan statement (for each property if applicable) Letter of Employment – this should confirm your commencement date and current salary and be signed by your Human Resources (HR) department. 2. 3. 4. 5. After credit has been approved, the Lease Agreements and Novation Agreements will be drawn up and forwarded to you for execution. A Novated Lease Protection Insurance (NLPI) application form will also be forwarded to you for completion, if applicable. All three copies of the Lease documents are to be executed by you and then forwarded to your HR department for execution, together with the NLPI application form, if applicable. For second-hand vehicles, also provide a copy of registration papers and a tax invoice from the dealer/vendor for the amount in question. 6. 7. Your HR department will execute the lease documents as required and return them to us on your behalf. If Comprehensive Insurance has not been placed with the third party insurer that we can arrange, then you must submit to us proof of insurance cover for your motor vehicle, prior to delivery. Please note that Comprehensive Insurance on your novated lease vehicle is compulsory. The vehicle is ordered and then delivered to you by the nominated motor vehicle dealer. We will pay the dealer directly for the vehicle. A copy of the completed lease documents are then returned to you for your records together with a Vehicle Schedule, after delivery of your motor vehicle. 8. 9. 10. 11. 18 8b1cf4e2-29dc-4cde-9023-afcfc2b7588f.doc EXPECTED PROCESS TIME FRAMES Where possible, we will endeavour to provide information and documentation within the following time frames. Please note that the majority of functions performed by us are reliant upon information and documentation being provided by various outside sources beforehand. Lease Quotations provided for new locally manufactured passenger vehicles within two working days of receipt of lease quotation requests. Lease Quotations provided for all other new vehicles within three working days of receipt of lease quotation requests. Lease Quotations provided for all second hand vehicles within four working days of receipt of lease quotation requests. Credit applications to be processed within two working days of receipt of application. Lease documents drawn up and dispatched to employee / contractor within two working days of receipt of credit application. Vehicle Orders to be placed with supplying Dealer within two working days of receipt of signed lease agreements. Confirmation of Salary Sacrifice to be provided within five working days after the receipt of the Vehicle Invoice and Registration papers from the selling Dealer. Fuel Cards ordered within one working day of receipt of registration papers from selling Dealer. Fuel Cards dispatched to employee / contractor within one working day of receipt by us. 19 8b1cf4e2-29dc-4cde-9023-afcfc2b7588f.doc Novated Lease Quotation Request New Vehicles FLEXITECH GROUP PTY LTD FAX TO: ATTN: DATE: 03 9882 6454 or email to firstname.lastname@example.com CUSTOMER SERVICE PERSONAL DETAILS Full Name Business Telephone Mobile Telephone Fax E-Mail Are You Entitled to an Employer Provided Vehicle? Employee / Contractor Number VEHICLE DETAILS Make Model Body Type Engine Type Sedan/Wagon etc 4/6/8 cylinder B( ) M ( ) Yes No Vehicle 1 Vehicle 2 Engine Capacity ltr Transmission Auto/Manual Accessories/Options eg. Air Conditioning, Tow Bar, Auto Manual Auto Manual LEASE DETAILS Lease Type Lease Term/Klms Location Vehicle Accident in Last 2 years Dealer Quote Obtained Basis of Quote (Fully Maintained Lease Inclusions) Finance Months: State: Yes Yes (attach copy) Fully Maintained Maintenance Roadside Service Comp. Insurance Fuel Provision 20 Operating Annual Klms: Garage Postcode: No No Future Registration Replacement Tyres Redundancy Cover Y / N 8b1cf4e2-29dc-4cde-9023-afcfc2b7588f.doc Novated Lease Quotation Request Second Hand Vehicles FLEXITECH GROUP PTY LTD FAX TO: ATTN: DATE: 03 9882 6454 or email to email@example.com CUSTOMER SERVICE PERSONAL DETAILS Full Name Business Telephone Mobile Telephone Fax or E-Mail Are You Entitled to an Employer Provided Vehicle? Employee / Contractor Number B( ) M ( ) Yes No EHICLE DETAILS Make Model & Rego Number Body Type (Sedan/Wagon) Engine Capacity & Type (eg. 3.8 ltr petrol) Transmission (Auto/Manual) Color Accessories and options (e.g. air conditioning, tow bar etc) Purchase via: Dealer Private Financier Proposed Lease Start Date Build Date (month & year) Next Rego Due Date (Date, Month & Year) State of Registration Odometer Reading Odometer reading Date CFL Purchase Price (Incl GST) GST Amount $ Is vehicle currently registered in driver's name. Does Purchase Price include Registration Transfer Costs? Finance Months: State: Yes Yes (attach copy) Fully Maintained Maintenance Roadside Service Comp. Insurance Fuel Provision 21 LEASE DETAILS Lease Type Lease Term/Klms Location Vehicle Accident in Last 2 years Dealer Quote Obtained Basis of Quote (Fully Maintained Lease Inclusions) Operating Annual Klms: Garage Postcode: No No Future Registration Replacement Tyres Redundancy Cover Y / N 8b1cf4e2-29dc-4cde-9023-afcfc2b7588f.doc Statement of Personal Financial Position This application is to be accurately and fully completed by the applicant Vehicle Description PERSONAL DETAILS Given Names Address Occupation Marital Status Bank/Branch Surname Quote Number Date of Birth How long at this address? Ph: How long in current employment Number of Dependents STATEMENT OF ASSETS AND LIABILITIES Liabilities Owing on house to Owing on other property to Owing to bank Credit Cards (provide details) Hire Purchase with Other (provide details) TOTAL LIABILITIES $ Assets House / Deposit on house at Other property at Aggregate balance of all bank accounts Other investments (provide details) Motor Vehicle Registration Number Furniture Life Policy (Estimated surrender value) Other (provide details) TOTAL ASSETS (LESS) TOTAL LIABILITIES SURPLUS / DEFICIT $ I am currently acting as Guarantor for financial liabilities totalling $ For the following person(s): MONTHLY COMMITMENTS AND INCOME (NEXT 12 MONTHS) Commitments Credit Card / Store Account Mortgage / Rental Payments Taxes (excluding P.A.Y.E) Rates Insurance (car, house, life etc) Superannuation Hire Purchase / Lease payments Other Loans $ Income Salary (after tax) Other wages & drawings Rental Property Income Family Allowance / Other pensions Other Income (provide details) $ TOTAL ANTICIPATED INCOME (LESS) TOTAL COMMITMENTS TOTAL COMMITMENTS SURPLUS / DEFICIT I declare, that the information given is in all respects a full and true statement of my present financial position, and my anticipated income and outgoings for the next twelve months. I acknowledge that: Personal information is collected for the purpose of assessing my application for credit, and that failure to provide sufficient information may mean my application cannot proceed; Personal information may be disclosed to credit providers, who may in turn disclose the personal information to its related entities for prudential and administrative purposes; Credit checks may be carried out and personal information disclosed to a credit reporting agency, and they may access their personal information at any time. Signature_______________________________________ 22 8b1cf4e2-29dc-4cde-9023-afcfc2b7588f.doc Company Authorisation Example / Draft Company Letterhead Fleet Australia Pty Ltd PO Box 3080 Auburn VIC 3123 Date Novated Lease for XXXXX Manager We certify that «FirstName» «Surname» is employed by «Company» in the capacity of «Title» and has been employed by «Company» since remuneration is $__________. . Their current gross annual A specimen signature of appears below. . Specimen Signature . Witness Signature . Full name and Position of Witness . Signed For And On Behalf Of XXXX ___________________________ (Signatory) 23 8b1cf4e2-29dc-4cde-9023-afcfc2b7588f.doc For more information visit our website at: www.fleetaustralia.com.au Or contact our Customer Service Centre on: EMAIL: firstname.lastname@example.com PHONE: 03 9882 9899 FAX: 03 9882 6454 Fleet Australia Pty Limited ABN 15 003 429 356 reserves the right to require leasing arrangements to be made with CBFC Leasing Pty Limited ABN 89 008 520 965, or any subsidiary or Commonwealth Bank Group entity, or an alternative financier. The information provided in this Information Kit is copyright to Fleet Australia Pty Limited unless otherwise stated. The views expressed are not necessarily those of Fleet Australia Pty Limited and the company makes no claim to their accuracy. Information in this Kit may contain technical inaccuracies or typographical errors. Information may be changed or updated without notice. Fleet Australia Pty Limited accepts no responsibility for any loss occasioned to any person acting or refraining from action as a result of material published in this Kit. The information on taxation is of a general nature only and is based on the continuation of present taxation laws, rulings and their interpretation. As individual circumstances differ, you should seek assistance from your taxation advisor. FAU958 24 8b1cf4e2-29dc-4cde-9023-afcfc2b7588f.doc
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Originally written on Packers Notes | Last updated 2/10/13
Young Brandon Bostick could be part of a two-headed monster at tight end in 2013 If the Green Bay Packers decide to part ways with tight end Jermichael Finley, the assumption is that GM Ted Thompson would either sign a replacement in free agency or draft one in April. But I'm not so sure about that. I think Finley's successor, or should I say successors, might already be on the roster. The more video I watch from the 2010 and 2011 seasons and the more I study my notes from last summer's training camp, the more I'm starting to believe that the combination of veteran Andrew Quarless and young Brandon Bostick might be the answer at tight end. Let's call this player Andron Quarlstick. Quarless missed all of this past season while recovering from a torn ACL suffered in December 2011, but he's expected to be fully healthy come July. If so, the former Penn State standout would provide the running game with a tight end capable of whipping a defender at the line of scrimmage – something neit...
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VIEWS: 19 PAGES: 6 CATEGORY: Childrens Literature POSTED ON: 11/29/2009 Public Domain
RUTGERS COOPERATIVE EXTENSION NEW J ERSEY AGRICULTURAL E XPERIMENT STATION New Jersey 4-H Leader Training Series How How to Write a News News Release Newspapers, radio, and television are excellent media for letting the public know about 4-H and the accomplishments of participants. A news release is an effective, accepted way to share information about 4-H with the media. One can be easily prepared by 4-H staff as well as volunteers. Here is an overview of the main considerations in preparing and distributing a news release: News Story News Story vs. Story Feature Story There are two main types of stories. A feature story typically covers a human interest subject and is more in-depth. A news story gets right to the point with news. This is an important distinction. Anyone can write a news release to send to local media, but a feature story is usually done by a reporter. However, a news release written by you may alert a reporter to write an in-depth feature story about the news you have announced. news? What is news? News is different things to different people. However, the decision as to what makes the news in the media will be decided by the reporters and editors of the media. Before you prepare a news release, try to consider the story from the reporter's perspective. Make sure it's newsworthy. Pay attention to what the media see as important and try to give them stories that fit their interests and needs. Remember to focus your efforts on local media first. Local weekly newspapers and small, local radio and cable television stations are much more likely to cover your story than larger, daily, regional newspapers, or big-city radio and television stations. Written by: Keith G. Diem, Ph. D., Affiliate Extension Specialist in Educational Design, 1990, revised 1994 Section III: Enriching the Club Experience 351 news Two kinds of news releases News releases can be written to promote an upcoming event or as a follow-up report to something that already happened. Although many media people prefer the advance-notice stories, some events, such as the receiving of an award, can only be reported after they occur. Find out which type of articles your local media prefer. Either way, plan ahead and be sure to give enough notice. After all, old news is no longer news at all! Develop Develop a list of local media Create an accurate list of local newspapers, as well as radio and television stations. Don't forget other organizations and institutions which may be interested in your news. Examples might include schools, local government, etc. Your county 4-H office may already have such a list. If not, there are also various printed directories of local media. You can also check the telephone directory or look for the address of where to send news to local newspapers in the newspapers themselves, and call radio and television stations for this information. Be sure to keep your list up-to-date: media people typically change positions and employers frequently. news Prepare news releases "inver verted using an "inverted pyramid" style An inverted pyramid means that you put all the most important information first in the news release. It helps the editor/reporter decide quickly if the article is newsworthy. It later helps readers decide if the story is relevant to their interests. Here are some tips in preparing a news release using the inverted pyramid style: 1. 2. 3. 4. Date the article. List a contact person's name, address, and telephone number. Devise a suggested title or headline for the article. The first paragraph should include all the necessary information, referred to as the "five W's" • Who • What • When • Where • possibly Why and How. 5. Succeeding paragraphs can include additional details of How and Why. 6. Include local names and city of residence whenever relevant. Local media especially like to mention names in their circulation/broadcast area. 7. Be sure to include the contact person's name and address/ telephone number in the article as appropriate. 352 Section III: Enriching the Club Experience 8. Besides more information about the 4-H club or event being featured, include the address and/or telephone number of the county 4-H office. In other words, promote all of 4-H while you have the opportunity. 9. Integrate the non-discriminatory statement somewhere into your news release. 10. Some radio and cable television stations will require a specific format, usually in shortened, outline form instead of a standard news release. Follow-up personall sonally Follow-up personally your news with your news release Most times you will be mailing your new releases. However, if you can (or if the story is extra important), deliver it personally to the local media office. If you don't, follow-up your mailing with a telephone call to the local reporter or editor for best results. To do this, it is helpful to know these people: so make it a point to get to know them. Involve media people Inv regularly you regularly in what you do The best way to help attract and maintain positive coverage of your events and activities is to involve local media representatives in your program all year long. Don't just invite them to attend; invite them to come and do something. Examples include judging 4-H projects and contests, serving as emcees for special events, members of advisory boards, etc. for working Other tips for working with mass media • • • Return calls from mass media representatives as soon as possible. Call them back again if you have to get facts. Write constructive letters to editors to thank them for good coverage/accurate stories as well as to "correct" inaccurate stories. In an interview situation, try to redirect a misguided question to give your story. Avoid making long statements that might get cut in length and, therefore, be printed/aired out of context. Think sound bite (10-20 word thoughts at a time). news Examples of news releases Examples of pre-event and post-event news releases are included in this information sheet. Typing your news releases will increase the acceptance of your information. However, if you absolutely cannot type them, either print very neatly or telephone the information in. Section III: Enriching the Club Experience 353 SAMPLE #1 (Advance-notice article) 4-H NEWS RELEASE May 17, 1992 Contact: Chris Clover, Leader of Greentown 4-H Club 4 Clover Way, Greentown, NJ 44444 (555) 444-4444 Greentown 4-H Club To Hold Open House, June 19 The Greentown 4-H Club will hold an Open House on Friday, June 19, from 7:30 to 9:00 pm at the club leader's home on 4 Clover Way. The purpose is to attract new members. The admission is free and refreshments will be served. Parents are encouraged to attend with their children. The club normally meets the first and third Tuesday of each month at 7:30 p.m. at Clover's home. The club's projects include woodworking, science, and bicycling. They also conduct community service projects like one they were honored for recently, and also have many fun activities like parties, trips, and camps. The club currently has eight 4-H members, boys and girls ranging from grades 4-10, from Greentown and several neighboring towns. However, any boy or girl, grade 4-13, from anywhere in Green County is welcome to join. For more information about the Open House or the Greentown 4-H Club, call Mr. Chris Clover at 444-4444. For other 4-H Clubs in Green County, contact the 4-H Office of Rutgers Cooperative Extension of Green County, at 555-4141. Membership in 4-H is offered to all kids, grades 1-13 (one year out of high school), without regard to race, color, national origin, sex, disability or handicap. K. Diem, 5/92. 354 Section III: Enriching the Club Experience SAMPLE #2 (Follow-up article) 4-H NEWS RELEASE January 29, 1991 Contact: Chris Clover, Leader of Greentown 4-H Club 4 Clover Way, Greentown, NJ 44444 (555) 444-4444 Greentown 4-H Club Members Cited for Environmental Work The eight members of the Greentown 4-H Club received a special plaque from the Greentown Town Council last week for their efforts in cleaning up Greentown Park, three local roadsides, and the banks of the Green River during the past year. The club members thought of the idea when they were planning their activities for the year back in September, said Chris Clover, volunteer club leader, of Clover Way. They wanted to do something to help the environment and the community, so these projects were perfect. The club members worked with the club leader and parents to get the permission and equipment needed, and spent most of their weekends this fall doing the work. Mary Jones, age 13, club president, accepted the award from Mayor Tom Smith on behalf of the entire club in a special ceremony held at the Town Hall. Jones lives on Maple Avenue. Other members of the club include Fred Schmidt age 11 of Oak Court; John Norton, age 10 of Main Street; Sue Lipfeld, age 13 of Clover City; Alex Baldwin, age 14 of Silverton; Mohammed Andrea, age 14 of Telltov Street; Mitzi Appleton, age 15 of Gurty Avenue; and Bill Ramos, age 16 of Clover Boulevard. The club meets the first and third Tuesday of each month at 7:30 p.m. at Clover's home. The club's projects include woodworking, science, and bicycling. They also conduct community service projects like the one they were honored for recently, and also have many fun activities like parties, trips, and camps. For more information about Greentown 4-H Club, call Mrs. Clover at 4444444. For other 4-H Clubs in Green County, contact the 4-H Office of Rutgers Cooperative Extension of Green County, at 555-4141. Membership in 4-H is offered to all kids, grades 1-13 (one year out of high school), without regard to race, color, national origin, sex, disability or handicap. K. Diem, 1/91. Section III: Enriching the Club Experience 355 356 Section III: Enriching the Club Experience
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Originally written on ESPN | Last updated 10/20/11
MELBOURNE, AUSTRALIA - JANUARY 22: Stanislas Wawrinka of Switzerland plays a backhand in his third round match against Marin Cilic of Croatia during day five of the 2010 Australian Open at Melbourne Park on January 22, 2010 in Melbourne, Australia. (Photo by Mark Dadswell/Getty Images)
Third-seeded Stanislas Wawrinka of Switzerland and fourth-seeded Juan Ignacio Chela of Argentina lost Thursday in the second round at the Stockholm Open.
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TV Ratings: 'CSI,' 'Grey's' Share Thursday Spoils
CBS led the night's overall race with an 8.0 rating/13 share. ABC finished second at 7.0/11. FOX, 5.4/8, came in third, a point ahead of
ABC grabbed the top spot among adults 18-49 with a 3.9 rating. CBS took second at 3.3, just ahead of NBC, 3.1. FOX scored a 2.7 for fourth, and The CW pulled down a 1.4.
The first of two "Bones" episodes won the 8 p.m. hour for FOX with a 6.1/10. An
CBS moved in front at 9 p.m. thanks to "
Ratings information is taken from fast national data, which includes live and same-day DVR viewing. All numbers are preliminary and subject to change.


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The competition from the Android side appears content to cluster at the low end. So yes, there is a reason Apple can keep its tablet prices high.
With a variety of new Dell tablets, laptops, and tablet/laptop hybrids, we've rounded up the most impressive of the bunch.


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A periodic bulletin keeping small businesses informed about current developments in securities law and related matters.
By way of background, pursuant to Section 5 of the Securities Act of 1933 (Securities Act) and state securities laws, any offer and sale of a security must be registered with the Securities and Exchange Commission (SEC) and any applicable state securities regulators, or exempt from such registration. On the heels of its adoption in July of rules that allow for wide and public solicitation and advertising in certain exempt private offerings, and pursuant to new Sections 4(a)(6) and 4A of the Securities Act, as added by Title III of the Jumpstart our Business Startups (JOBS) Act, the SEC has proposed its much-anticipated rules that would exempt from registration certain sale of securities via "crowdfunding." According to the proposing release, available here [PDF], "[c]rowdfunding is a new and evolving method to raise money using the Internet. Crowdfunding serves as an alternative source of capital to support a wide range of ideas and ventures." According to the release, "[a] crowdfunding campaign generally has a specified target amount for funds to be raised, or goal, and an identified use of those funds" and "typically seeks small individual contributions from a large number of people." Currently, crowdfunding campaigns offer contributors a sample of the item the company seeking the capital is developing or, for example, in the case of a crowdsourcing campaign to produce a movie, a credit in the movie or tickets to the premier. However, such crowdfunding campaigns cannot offer stock or other equity in the company raising the funds as that would implicate federal and state securities laws, and crowdfunding does not currently qualify for an exemption from registration under such laws. In accordance with the JOBS Act, the dollar figures in the proposed rules would be subject to periodic adjustment for inflation.
Under the proposed rules, in order to qualify for the crowdfunding exemption issuers would have to (i) comply with specified requirements, including limits on the amount raised from any one investor and by the issuer in any 12-month period, (ii) conduct the offering through a registered intermediary, (iii) comply with the rule's informational requirements, and (iv) comply with certain other requirements set forth in the proposed rule. This Bulletin discusses the requirements of the proposed crowdfunding exemption in more detail below.
Pursuant to Section 18(b)(4)(B) of the Securities Act, securities sold in a crowdfunding offering under the new rules would be exempt from state registration, subject to any state requirements to file any documents submitted to the SEC in this regard, including annual reports, discussed below.
Consistent with Section 4(a)(6), the proposed rules limit the amount an issuer may raise under the crowdfunding exemption to $1 million in any 12-month period. The proposing release makes clear, however, that the limit applies only to offerings under the proposed crowdfunding exemption, and that amounts raised through other methods, such as an exempt private placement conducted under Regulation D of the Securities Act or through non-securities based crowdfunding efforts, will not count towards the $1 million limit. The amount sold in reliance on the exemption by entities controlled by or under common control with the issuer, or any predecessor of the issuer, within the prior 12 months will, however, count towards the $1 million limit. Crowdfunding offerings will not be integrated with other exempt offerings by the issuer, assuming that each offering complies with the requirements of the applicable exemption being relied upon. Issuers will need to take care, however, to ensure that persons investing in an exempt offering that does not permit general advertising and general solicitation that is concurrent with a crowdfunding offering were not solicited by means of the crowdfunding offering.
Under the proposed rules, the aggregate amount of securities sold by an issuer to any one investor during any 12-month period may not exceed the greater of (i) $5,000 or 5% of the investor's annual income or net worth, whichever is greater, if the investor's annual income and net worth are below $100,000 or (ii) 10% of the investor's annual income or net worth, whichever is greater, not to exceed $100,000, if the investor's annual income or net worth are at least $100,000. Income and net worth are calculated consistent with the SEC's definition of an accredited investor as set forth in Rule 501 of Regulation under the Securities Act and, therefore, may be considered alone or with the investor's spouse and the investor's primary residence must be excluded from the net worth calculation. Further, under the proposal issuers could rely on efforts that an intermediary takes in order to determine that the aggregate amount of securities purchased by an investor will not cause the investor to exceed the limits, as long as the issuer has no knowledge of the contrary. There are no other purchaser requirements under the proposed rules; for example, investors need not be accredited investors or have any knowledge or experience in business or financial matters.
As noted above, to qualify for the crowdfunding exemption, a securities offering must be conducted solely through online platforms operated by a registered intermediary that complies with Section 4A of the Securities Act and otherwise complies with the requirements of the proposed rule. Issuers may not use more than one intermediary to conduct a crowdfunding offering or concurrent offerings. Consistent with the general understanding of crowdfunding, offerings under the proposed rules could not take place off-line, although issuers may provide notice, consistent with the conditions of the proposed rule, directing potential investors to the intermediary's platform, through other means.
Pursuant to Sections 4(a)(6) and 4A of the Securities Act, an intermediary must be a registered broker or a "registered funding portal." Funding portals are limited to acting as intermediaries in crowdfunding offerings and cannot offer investment advice, solicit purchases, hold or handle investor funds or securities, or take certain other prohibited actions in connection with securities offerings. The proposed rules set forth the requirements and means for such funding portals to register with the SEC through a new Form Funding Portal; funding portals must also register with FINRA or another registered national securities association that may exist in the future. Funding portals would be subject to SEC examination and enforcement, be required to implement policies and procedures designed to achieve compliance with the federal securities laws and applicable regulations thereunder, and have to comply with certain recordkeeping, anti-money laundering and Bank Secrecy Act, and other ongoing requirements as set forth in the proposed rules. The proposed rules set forth additional activities that may and may not be undertaken by funding portals, a discussion of which is beyond the scope of this Bulletin.
Consistent with Section 4A of the Securities Act, the proposed rules set forth actions intermediaries must take with respect to their role in crowdfunding. As set forth therein, funding portals, among other things, must: (i) provide investors with investor-education materials, ensure that each investor affirms that the investor understands that the investor is risking the loss of its entire investment, that the investor could bear such a loss, and ensure that the investor understands certain risks in connection with the offering; (ii) make information required to be provided by the issuer, as discussed below, available to investors and the SEC on its platform at least 21 days before any securities are sold; (iii) take steps to reduce fraud with respect to crowdfunding transactions, including having a reasonable basis to believe that the issuer is in compliance with all relevant regulations and has the means to keep accurate records, conducting background checks to ensure that the issuer (and its related persons) is not subject to the disqualification provisions discussed below, and prohibiting the issuer from using its platform if it becomes aware of a disqualification or other information that it believes presents the potential for fraud; (iv) take steps to ensure that investors do not exceed the investment limits of the rule, and have a reasonable basis to believe (including through the investor's representation to that effect), before allowing an investor to invest though its platform, that the investor satisfies the investment limitations discussed above; (v) electronically deliver required investor education materials (including about risks of investing and the circumstances under which an investor may cancel an investment), notices and confirmations; (vi); before accepting an investment commitment, obtain a representation from the investor that it has reviewed the educational materials, understands that the entire amount of his or her investment may be lost and is in a financial condition to bear such loss, and a questionnaire from the investor that the investor understands there are restrictions on the investor's right to cancel their commitment, it may be difficult to resell the securities purchased and the investment involves risk; (vii) provide on its platform communication channels by which potential investors can communicate with each other and with representatives of the issuers making offerings through the intermediary's platform; (viii) comply with rules for the maintenance and transmission of investor funds in any offering through its platform (funding portals cannot receive funds and would have to direct investors to transmit funds to a qualified bank), including transmitting (or directing the transmission of) funds to the issuer only after the target offering amount is met or exceeded (but not before 21 days after the intermediary has posted the required information about the offering and the cancellation period has elapsed); (ix) provide investors with a notice of investment commitment upon receipt of an investment commitment from an investor; and (x) provide investors with confirmation of the transaction, including the identity, price and number of securities purchased by the investor and sold in the offering, the purchase price, and the source and amount of any remuneration received by the intermediary in connection with the transaction.
With respect to communication channels, an intermediary that is a funding portal would be prohibited from participating in any communications in these channels, apart from establishing guidelines for communication and removing abusive or potentially fraudulent communications.
Only U.S. issuers that are not required to file reports with the SEC under the Securities Exchange Act of 1934 (Exchange Act) would be permitted to conduct an offering under the proposed crowdfunding exemption. Investment companies, companies excluded from the definition of an investment company pursuant to certain exclusions from the definition (including hedge funds and other private funds), companies that had utilized the crowdfunding exemption but failed to file the required annual report with the SEC in the prior two years and companies with no specific business plan or whose business plan is to merge with or acquire an unidentified company or companies, would also be ineligible to conduct such an offering. Finally, the proposed rules provide that an issuer may not conduct an offering under the proposed exemption if (i) the issuer, (ii) an affiliated or predecessor issuer, (iii) its officers, directors or stockholders owning 20% or more of its voting securities, (iv) any promoter of the issuer, or (v) any person that has or will be compensated in the offering (or its directors, officers, general partners or managing members), have been convicted of certain felonies and misdemeanors, are subject to certain court or regulatory orders, bars, judgments or decrees, or filed or was named as an underwriter in any registration statement or Regulation A offering statement with the SEC that was subject to a refusal order, stop order or order suspending the regulation A exemption. For criminal convictions and certain orders, judgments and decrees, the look-back period for such events is either five or ten years, but others will result in a disqualification if the applicable person or entity remains subject to the order, etc. at the time of sale. In either case, the disqualification will not apply if the triggering event took place before the effective date of the final rules. Issuers will have to disclose in their offering materials, however, any such event that would have triggered the disqualification but for the fact that the event took place before the effective date of the rules. In addition, the disqualification will not apply if the authority issuing the relevant judgment, order or other triggering directive advises the SEC, either in such order, judgment, etc. or by direct communication to the SEC, that disqualification should not be a consequence of the order, judgment or other action. The disqualification also will not apply if waived by the SEC (by delegation to the Director of the Division of Corporation Finance) "upon a showing of good cause" or "[i]f the issuer establishes that it did not know and, in the exercise of reasonable care, could not have known that a disqualification existed." Therefore, an issuer conducting a crowdfunding offering would need to make factual inquiries to confirm that no disqualification exists. Similar disqualification provisions also apply to intermediaries.
Consistent with Section 4A of the Securities Act, the proposed rules require issuers conducting an exempt crowdfunding offering to file certain information with the SEC through its EDGAR filing system and provide it to the intermediary, who would then make it available to investors and potential investors through the intermediary's platform. This information would be disclosed on a new Form C. Form C would require the issuer to disclose certain information about: (i) the issuer and its officers, directors and persons that beneficially owns 20% or more of its outstanding voting securities; (ii) its business and business plan; (iii) the intended use of proceeds of the offering; (iv) the target offering amount, the deadline to reach such target, and whether the issuer will accept subscriptions in excess of the target amount and the maximum amount it will accept, and how it will allocate oversubscriptions; (v) the offering price; (vi) the terms of the securities being offered and other information regarding the issuer's ownership and capital structure; (vii) a discussion of the material factors that make an investment in the issuer speculative or risky; (viii) indebtedness of the issuer; (ix) other exempt offerings conducted by the issuer in the past three years; (x) certain related-party transactions; and (xi) similar to the Management's Discussion and Analysis required for registered offerings, a description of the issuer's financial condition, "including, to the extent material, … the issuer's historical results of operations, liquidity and capital resources." Issuers would also be required to disclose that investors may cancel an investment commitment until 48 hours prior to the deadline disclosed in the offering materials, that the intermediary will notify investors when the target offering amount has been reached, and disclosures regarding closing the offering early if the target amount is reached, the need for an investor to reconfirm its investment after a material change to the offering, and that the offering will be canceled if the target amount is not reached by the offering deadline. Issuers would also be required to inform investors that the securities purchased would be restricted from resale or other transfer for one year, as well as the name of and amount of compensation paid to the intermediary in the offering. The proposed rules also would require that certain legends be included in the offering materials.
In addition, issuers would be required to provide certain financial information in the Form C, depending on the amount of capital being raised in the current offering and raised in all other crowdfunding offerings under Section 4(a)(6) in the prior 12 months, as follows: (i) up to $100,000, the issuer's most recent tax return and financial statements for the last two fiscal years certified by its principal executive officer to be true and complete; (ii) greater than $100,000 but no more than $500,000, financial statements reviewed by an independent certified public accountant (CPA); and (iii) greater than $500,000, financial statements audited by an independent CPA. Such financial statements must cover a two-year period or, if shorter, the period since inception. The independent CPA need not be registered with the Public Company Accounting Oversight Board, and the CPA's review or audit report must accompany the financial statements.
Issuers would also be required to prepare regular updates on its progress in meeting the target offering amount, and amend its disclosure for any material changes to the terms of the offering or the disclosure previously provided, which would be filed with the SEC and provided to investors and the intermediary and made available to potential investors.
Under the proposed rules, advertising of crowdfunding offerings would be limited to notices that provide very limited information about the offering and the issuer and direct potential investors to the intermediary's platform. Issuers and their founders and employees, or other persons engaging in promotional activities on behalf of the issuer, could also communicate with potential investors about the terms of the offering through communication channels provided by the intermediary, but must identify themselves in each such communication. Compensation paid to any person to promote the offering through such channels, or promotion by a founder or employee of the issuer, must be clearly disclosed each time such person makes a promotional communication.
In addition, under the proposed rules intermediaries could not compensate any person for providing it with "personally identifiable information" of any investor or potential investor. The proposed rules would permit an intermediary to compensate persons for directing issuers or potential investors to the intermediary's platform if the person does not provide the intermediary with personally identifiable information of any potential investor and the compensation is not based on the purchase or sale of a security offered through the intermediary's platform, unless paid to a registered broker or dealer. Further, neither an intermediary nor any of its directors, officers or partners could have or receive as compensation a financial interest (i.e. equity) in any issuer offering and selling securities through its platform.
Under the proposed rules, investors may cancel their commitments at any time until 48 hours before the expiration date of the offering disclosed in the offering materials. The issuer can close the offering early if the target investment is reached prior to the expiration date if the offering would have remained open for at least 21 days, the issuer provides notice of the new offering deadline and investors are given the opportunity to cancel their investment commitment until 48 hours before the new deadline, as long as the issuer continued to meet the target investment amount.
If there is a material change to the terms of the offering or the offering information, the proposed rules would require the intermediary to give or send to potential investors who have made investment commitments notice of the change and informing investors that their commitment will be cancelled unless they reconfirm their commitment within five business days of receipt of the notice.
If an issuer cancels an offering, the intermediary must send a notice of cancellation within five business days and return or direct the return of the investors' funds.
The proposed rules would prohibit the resale or other transfer of securities sold in a crowdfunding offering for one year from the date of purchase except for transfers: (i) to the issuer; (ii) to an accredited investor; (iii) as part of a registered offering; (iv) to a family member (as defined in the proposed rules); and (v) to a trust controlled by the initial purchaser or created for the benefit of a family member, or in connection with the death or divorce of the purchaser or other similar circumstance.
Issuers that sell securities pursuant to an offering under the new exemption would have to file annual reports with the SEC, and post on their Web site, on a Form C-AR that includes the information required by Form C, except the offering-specific information, including updated financial statements and discussion of its financial condition. Such an issuer would be required to file the annual report until (i) it becomes an SEC reporting company, (ii) all the securities issued under the exemption are repurchased, or (iii) it dissolves or liquidates.
Security holders of an issuer who own securities initially sold by the issuer solely under the new crowdfunding exemption would not count towards the number of record holders (2,000 or 500 who are not accredited investors, or 2,000 for banks and bank holding companies) that trigger SEC registration and reporting under Section 12(g) of the Exchange Act.
In the proposing release, the SEC has asked for comments on almost 300 specific questions, as well as comments in general on the proposal, so the final rules are likely to contain some changes from the proposal, though we expect the general structure of the proposed crowdfunding exemption to remain intact. Comments are due February 3, 2014. Further, the SEC will "monitor the market for offerings made in reliance on" the new exemption with the intention of considering necessary amendments, so there may be changes after adoption as well.
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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.
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What a fantastic turnout for Halloween! Thanks to everyone who made their way down to Underbank, we had a brilliant time and hope you did too!
Working in partnership with local Creative Agency, www.bluecoffee.com we are delighted to launch our new mobile-ready, responsive website so you can now shop for all of our wonderful products out of hours from the comfort of your own home. We have thousands of products to offer and you can now shop on the run, from your mobile phone, tablet or desktop as well as coming in to see us at our fabulous shop.


text: To the Editor: The North Branch Rotary appreciates all who participated in this year's Christmas tree sales at the County Market. Every year, the Rotary sells trees to raise scholarship funds for local students, and this year we sold out. The Rotary meets at noon every Wednesday at the AmericInn i...Read More


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By Sao Indobhasa
The core of what was to become the kingdom of Ayutthaya had in the thirteen century been the western provinces of the Angkorian Empire in the region centered on a province, now called Lopburi.1 Although the personal name of the founder of Ayutthaya was not known, most scholars agree that he was the prince of U Thong, who belonged to the rulers of Chiang Seng, now Suphan on March 4, 1351.2 U Thong, also known as Phrya U Thong after founding Ayutthaya, assumed the title of Ramathibodi, which was to be assumed by many other kings of Siam later.3 The reason that led to the establishment of Ayutthaya is not known, though it may be contributed to the Tai's4 continued move to southward onto the central plain.5
Geographically situated on an island in the Chao Phraya, a point reachable by seagoing vassals on the northwestern edge of the powerful Khmer empire, Ayutthaya was first only a small city-state.6 However, by the mid of 13C when Angkor's control over the region faded, Ayutthayan Tai kings succeeded in pushing the Khmer back, and in 1431 the Tai sacked Angkor, the great capital of the Khmer. (Wars against neighbouring powers were to remain endemic throughout the Ayutthayan period.)
In 1438 Sukhothai, once a more powerful Thai kingdom, was made a province of Ayutthaya.7 Whereas Sukhothai was an independent kingdom for only about 200 years (11 – 13 AD), its successor, Ayutthaya—situated in the rich rice plains of the Chao Phraya River basin, about 55 miles north of present-day Bangkok—lasted more than 400 years (1351 – 1767).8 During the Ayutthayan period the Tai consolidated their position as the leading power in what is now central and north-central Thailand, as well as throughout much of its southern peninsular region. Since many of Ayutthaya's neighbours called the country "Siam", the Tai of Ayutthaya came to be known as the Siamese.9
When the Siamese conquered Angkor, they brought many Khmer captives back to Ayutthaya with them. Some had been officials or craftsmen at the Khmer royal court. From them Ayutthaya's rulers adopted many Hindu practices that had been followed by the Khmer, including the concept of the ruler as god-king (devaraja). The power of the ruler was enhanced not only through symbolic and ideological concepts drawn from Khmer-Hindu beliefs about the god-king but also through the centralization of political power.
King Boromma Trailokanat, or Trailok (ruled 1448–88) created a state in which the ruler stood at the centre of a series of concentric circles. He took efforts on reforming the kingdom's laws and strengthening his administration.10 He was the first king who promulgated the system of law in Siam history.11 He issued two important pieces of legislation—the Law of the Civil Hierarchy and the Law of the Military and Provincial Hierarchies.12 As in the müang system, the outer circles were governed by hereditary lords, or chao. The inner circles, however, were administered by officeholders appointed by the king, and thus these operated to a limited degree on bureaucratic rather than hereditary lines.13
The Tai kings of Ayutthaya also issued formal codes of civil and criminal law based on the ancient Indian body of jurisprudence called the Dharma-sastra. At the same time, a formal and highly complex hierarchical system assigned each person a varying number of units (sakdi na) that designated one's rank within society. At the bottom of the scale, a slave was worth 5 units; freemen were ranked at 25 and above, while the heir apparent was assigned no fewer than 100,000 units.14 For instance, the Chao Phryas, holding important posts, were allowed to hold from 1,000 to 4,000 acres. Subordinate officials, such as Khuns and Luangs, held from 160 acres upwards. Common people held 10 acres.15
The mass of the people in Ayutthayan times were peasant farmers, either freemen or slaves. The latter included war captives, bondsmen, and debtors. Freemen were obliged to work for six months each year for the local representatives of the king, to pay taxes, and to provide military service as required. An intricate patronage system extended throughout society, whereby clients provided their patrons with services in return for the protection of the patrons. Ayutthaya was an under-populated society, and the constant need for manpower helped protect clients from excessive demands by patrons; if the demands of the patrons became too burdensome, the freeman could always move and take up new land as a last resort.16
Despite the introduction of Brahmanism into court ritual and the admixture of animism and superstition that pervaded religious practice at all levels of society, Theravāda Buddhism took deep root throughout Siam during the Ayutthayan times.
Buddhism, with its strong monastic establishment, played an important role in society, forming a focal point for village life, providing young males with an education, and offering those who elected to remain in the monkhood (sangha) a channel for upward social mobility.17 The reign of Boromaraja I was an important period in the history of Ayutthaya which became the famous center of Siam, not only politically but also spiritually. The rulers of Ayutthaya, who sent triennial tribute missions to the Chinese imperial court and emissaries abroad as far a field as Europe, also established Buddhist missions in Sri Lanka.
Contact with Ceylon was maintained as in the Sukhothai period. Monks during the early Ayutthaya period continued to look to Ceylon for authority of Theravada Buddhism. Many of them went to the island for ordination and study. A group of monks consisting of ten bhikkhus came back from Ceylon to establish a new fraternity of gāmavāsīn that became known as gāmavāsī khwa, "town-dweller of the right". They are said to have been ordained on a raft in the Kalyani River in Sri Lanka in 1423 with Vanaratana Mahāthera as their preceptor. From that time Ayutthaya had three nikāyas, gāmavāsī chai, "the left town-dweller", araññavāsī, "forest-dweller", and gāmavāsī khwa, "the right town-dweller".18 The right town-dwellers formed a new Lankawong (Lankāvamsa), "the Sri Lankan lineage". The post of sangharājā was usually occupied by the gāmavāsī chai, "the left town-dweller", the older group of the town-dwellers. The heads of the other two nikāyas assisted the sangharājā in the ecclesiastical administration. The abbot of Wat Mahathat (Mahādhātu), Ariyavamsa, the Sangharājā, is said to have had authority over ecclesiastical affairs in the north, northeast and some part of central Ayutthaya. The head of the right town-dwellers was in charge of the south and some part of central Ayutthaya while the head of the forest-dwellers took charge of all belonging to his sect in all parts of Ayutthaya.19 We are not certain if the structure of the Sangha administration was directly related to the secular model at Ayutthaya.
There were two sangharājās under Naresuan, who was a prisoner at Ava under Bayin Naung before becoming a warrior monarch at Ayutthaya. One of them was a Mon monks who helped him escape from Taung-oo in 1592 saving his life. This monk had jurisdiction over the north section while the former head, Somdech Vanarat became the Sangharājā for the south section.20
The kings of Ayutthaya are said to have fought a war every six years.21 Ayutthaya attacked its neighbours such as Cambodia, Malaya and Laos, and was in turn attacked by some of them. In the second half of the sixteenth century Tabinshwethi (1531-1550) of Taungoo with a large army invaded Ayuthaya during the reign of King Maha Chakrapa't (1549-1564). Then, Bayinnaung (1551-1581), who had his capital at Pegu (Hamsavati), conquered Ayutthaya twice in 1563 and 1569.22 The attack on Ayutthaya continued under the Kon-baung kings, beginning from Alaungpaya (1752-60).23 Ayutthaya was destroyed in March, 1767 resulting in its being abandoned.24 Many captives were taken away. As the political situation was in turmoil, the progress of Buddhism was affected. Despites king Bayinnaung's great contribution to the cause of Buddhism in Ayutthaya during his rule as a vassal state, many monuments, cultural and religious sites were lost in the last war.25
Phaya Taksin, a Thai general who promoted himself to be king in 1769, abandoned the ruined Ayutthaya and established a new capital further south in Thonburi on the western bank of Chao Phraya River, opposite Bangkok.26 Professor Wyatt said that King Taksin became arbitrary and dictatorial, even requiring Buddhist monks to pay homage to him.27 Thais regained control of their country and thus scattered themselves to the provinces in the north and central part of Thailand.28