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News In Brief

News and Analysis

  • Australians told carbon tax “manageable”, despite unknowns

    May 18, 2012

    With the advent of Australia’s carbon pricing mechanism just around the corner, Australian Climate Change Minister Greg Combet has spoken out in defence of the policy and sought to allay industry fears over the impact of the tax.

  • New EU legislation to stop double taxation of vouchers

    May 18, 2012

    EU taxpayers can expect greater certainty regarding the VAT treatment of vouchers after the European Commission proposed new legislation last week to tackle problems with the existing system.

  • ECOFIN cautiously supports Commission’s VAT proposals

    May 16, 2012

    At a meeting in Brussels this week, the Economic and Financial Affairs (ECOFIN) Council gave the green light to a number of the European Commission’s proposals to make the EU’s VAT system simpler, more efficient and more robust.

  • Commissioner Semeta still hopeful for an EU-wide FTT

    May 15, 2012

    In just over a month, EU member states are set to vote on introducing a financial transaction tax (FTT). The major economies of Europe remain polarised on the issue and agreement has been hard to find, but in an exclusive interview, Algirdas Šemeta, European Commissioner for tax, customs union, audit and anti-fraud explains why he has not given up on an EU-wide FTT, why it remains the best option for taxing the financial sector, and how it could work under enhanced cooperation.

  • ECJ Advocate General's opinion in Deutsche Bank case is bad news for investment fund managers

    May 11, 2012

    In an opinion released on Wednesday, an Advocate General of the ECJ said discretionary investment management services should be subject to VAT, raising some serious concerns for investment managers.

  • Stage set for battle to recover VAT on UK postal services

    May 11, 2012

    The First-tier Tax Tribunal (FTT) has accepted a taxpayer’s application to bring a lead case against HM Revenue & Customs (HMRC) to recover VAT. If successful, businesses could be entitled to reclaim more than £220 million ($354 million) of input tax on Royal Mail's postal services.

  • Spain and France reverse course on VAT policy

    May 10, 2012

    The Spanish government looks set to go back on its promises not to raise VAT, while the new French President is heading in the opposite direction.

  • OECD confirm Global Forum on VAT by end of the month

    May 09, 2012

    The OECD’s work to create a new Global Forum on VAT is moving fast and its head of consumption taxes expects to announce it at the end of May.

  • Sales tax implications of group discount vouchers

    May 04, 2012

    Lindsay McAfee and Nima Farzaneh of KPMG look at the US sales tax implications of deal of the day vouchers offered through social networking sites.

  • South Korea’s carbon tax could prompt a regional emissions trading coalition

    May 04, 2012

    The South Korean Parliament has passed an emissions trading scheme (ETS) to be introduced in 2015, and Australian climate change campaigners say this strengthens the possibility of forming a regional trading coalition.

  • Business nervous of split-payment, says GE’s Needham

    May 03, 2012

    Chris Needham, global VAT/GST director of GE talks to International Tax Review about the biggest challenges he is facing at the moment, the policy proposals which will make life easier for VAT directors and those which may pose greater headaches.

  • Environmentalists disappointed by slow progress on revised ETD

    April 27, 2012

    Environmentalists welcomed the European Commission’s revised Energy Tax Directive (ETD), but they feel Council negotiations over the reforms are taking too long and are in danger of weakening the proposals.

  • Hungary’s FTT will not follow Commission’s model

    April 27, 2012

    The Hungarian government has announced it will implement a financial transaction levy (FTL) in January 2013, but it seems the model will depart significantly from the European Commission’s (EC) proposals and that which France will introduce in August.

  • Lower interest rates to mitigate carbon tax impact

    April 27, 2012

    Figures showing lower-than-expected inflation, released on Tuesday, indicate that interest rates will fall ahead of the July 1 introduction of the carbon pricing mechanism.

  • Revamp of taxation landscape for services in India

    April 27, 2012

    Supriya Jain of KPMG looks at important changes that are happening to service taxation in India.

  • UK government to crack down on LVCR avoidance schemes

    April 26, 2012

    The UK government is taking steps to stop companies avoiding the removal of low value consignment relief (LVCR) on Channel Island imports two weeks after International Tax Review reported how companies are getting around the abolition.

  • Irish VAT relief likely to be extended

    April 20, 2012

    The press is no longer policing whether businesses in the tourism industry are passing the VAT cut on to customers, but despite a few cynical moves, the cut is likely to be extended.

  • Issues with environmental tax incentives and resource efficiency

    April 20, 2012

    Chris Lenon, group strategic adviser, for tax policy at Rio Tinto looks at how best to design environmental tax policy and incentives

  • Why Germany's new VAT rules are bad news for taxpayers

    April 20, 2012

    New German rules on the documentation required to obtain VAT exemptions on supplies between EU member states will lead to an increased administrative burden and VAT risks for companies.

  • Why Italy wants to introduce a carbon tax

    April 20, 2012

    The Italian Ministry of Environment met yesterday to discuss plans for introducing a carbon tax. Aldo Ravazzi, an economist at the ministry who is working on the tax, tells International Tax Review what he hopes to achieve.

  • Hungary brings European FTT one step closer

    April 13, 2012

    A leak from the Hungarian government’s convergence programme last week raised the prospect of the country adopting a financial transaction tax (FTT), and such a tax would have a broader scope than the European Commission’s model, according to advisers.

  • Study team inches India closer to GST

    April 13, 2012

    The Indian government has established a study team to look at the possibility of harmonising service tax and central excise.

  • The need to define environmental tax

    April 13, 2012

    Chris Lenon, group strategic adviser for tax policy at Rio Tinto, argues that it is important to distinguish environmental taxation from general taxation for it to be effective.

  • How Channel Island retailers are getting around LVCR abolition

    April 12, 2012

    A source in a major Guernsey-based retailer has revealed how his company is going to attempt to get around the UK’s scrapping of low value consignment relief (LVCR) on Channel Islands imports.

  • Shortlists for European Tax Awards 2012 announced

    April 12, 2012

    The number of firms in contention for International Tax Review’s European Tax Awards shows that the competition for the money tax executives have to spend on external advisers is intense.

  • Businesses need effective global VAT management practices

    April 05, 2012

    Despite the continued shift to indirect taxation globally, a majority of businesses still do not have effective global VAT/GST management practices in place, reports Niall Campbell, KPMG’s global head of indirect tax services.

  • Commission must go back to the drawing board on FTT

    April 05, 2012

    Last week’s ECOFIN meeting brought yet more bad news for advocates of an EU financial transaction tax (FTT).

  • Why the UK needs to simplify its carbon tax

    April 05, 2012

    The Carbon Reduction Commitment (CRC) has been radically altered since it was devised by the previous UK government and businesses and environmentalists agree it may now be too complex.

  • Dutch government hikes VAT with dying breath

    April 04, 2012

    Despite resigning last week, the Dutch government found time to give taxpayers the parting gift of a VAT rise.

  • Finnish industry condemns VAT hike

    April 04, 2012

    Finland is following its Nordic neighbours in a race to the top of EU VAT rates and business is worried.

  • Intra-group foreign debt in the Canadian resource industry

    April 01, 2012

    The Department of Finance recently released proposed amendments to Canada’s foreign affiliate regime including rules dealing with so-called upstream loans. Bruce Sinclair and Kirsten Kjellander of Blake, Cassels & Graydon explore implications of these proposals for multinational enterprises involved in the natural resource industry.

  • Tax challenges for the energy sector in Indonesia

    April 01, 2012

    Indonesia is blessed with oil, gas, coal and mineral natural resources. The exploitation of energy resources (oil, gas and coal) has contributed significantly in spearheading the growth of the Indonesian economy over the past 40 years. Jul Seventa Tarigan of PB Taxand outlines the challenges taxpayers in the energy sector face and offers an example of how to utilise operations in the resource-rich country.

  • FTT could save billions for member states

    March 30, 2012

    The European Commission has proposed that two thirds of the revenue generated by a financial transaction tax (FTT) should replace member states’ contributions to the EU budget, in an attempt to garner more support for the levy.

  • How tax transparency can boost your corporate reputation

    March 30, 2012

    Companies are highly concerned with their public reputation and, in light of this, their tax positions are becoming an increasingly important concern.

  • Russia considers oil export duty cut

    March 30, 2012

    Russia’s government is looking into cutting the high tax burden on oil companies to increase the industry’s profitability.

  • How to survive a VAT audit

    March 28, 2012

    VAT audit rules vary from country to country, but across Europe taxpayers are feeling the heat. Find out how to deal with the authorities when they come knocking.

  • What taxpayers think about the Commission’s VAT reform plans

    March 27, 2012

    Taxpayers have responded favourably to the Commission’s plans to reform the EU’s VAT system, but they are concerned by anti-fraud measures and unrealistic proposals.

  • World Tax 2013 questionnaires can be submitted now

    March 26, 2012

    The research has now started for World Tax 2013, International Tax Review's directory of leading tax law and tax accounting firms around the world.

  • India revolts over EU carbon tax on airlines

    March 23, 2012

    The Indian government has revolted against the extension of the EU’s Emissions Trading Scheme (ETS) to airlines by barring its aircraft from complying.

  • ANALYSIS: UK budget brings indirect tax changes

    March 22, 2012

    The indirect tax measures in this week’s budget will provoke a mixed response from multinationals.

  • Everything you need to know about the UK budget

    March 21, 2012

    Read what changes the government has made to the UK's tax system.

  • Indian budget accelerates the pace towards GST

    March 21, 2012

    Santosh Dalvi of KPMG analyses the indirect tax reforms from the latest Indian budget.

  • Netherlands look for other means to tax financial sector

    March 21, 2012

    Despite enthusiasm for a financial transactions (FTT) tax from France, Germany and the European Commission, the Dutch are looking at other options for taxing the financial sector.

  • Australian carbon tax to be challenged at High Court

    March 16, 2012

    Australian mining magnate Clive Palmer has announced his intention to go to the High Court regarding the Australian government’s planned tax on carbon emissions, saying he has advice that the legislation is not constitutionally acceptable.

  • Indian budget proposes negative list

    March 16, 2012

    Today’s budget includes the proposal to tax all services except those in the negative list.

  • Why a Europe-wide FTT will never happen

    March 16, 2012

    Tuesday’s meeting of EU finance ministers has plunged the Commission’s proposals for a financial transaction tax (FTT) into further confusion.

  • Why China is extending its VAT pilot

    March 16, 2012

    China piloted a new VAT regime in Shanghai in January. It now plans to expand the programme to Beijing on July 1.

  • Nobel Prize winners urge Obama to back EU’s carbon tax on airlines

    March 15, 2012

    As seven of Europe’s biggest airlines earlier this week voiced their opposition to the EU’s decision to bring aviation into the Emissions Trading Scheme (ETS), a much longer list of American academics have asked their government to back the EU or back off.

  • UPDATE: Egyptian VAT must wait

    March 09, 2012

    The Egyptian government is not ready to bring in VAT yet. It is also considering other tax policy options.

  • Why the French FTT could force companies to relocate

    March 09, 2012

    Draft legislation for France’s financial transaction tax (FTT) was adopted last week, and it is French-listed companies who look set to lose out.

  • What Singapore’s new GST compliance programme means for taxpayers

    March 08, 2012

    Lam Kok Shang and Gan Hwee Leng of KPMG Singapore analyse the recently launched Assisted Compliance Assurance Programme (ACAP).

  • Why Brazil is expanding its transactions tax

    March 08, 2012

    Brazil is expanding the scope of its IOF transactions tax on short-term loans and bonds following last year’s rate increase to 6%.

  • New Philippine VAT rules threaten petroleum importers

    March 06, 2012

    The Philippines has introduced new VAT rules for oil imports, but refund delays are worrying taxpayers.

  • EXCLUSIVE: Danske Bank’s Carsten Ibsen hits back at the Commission’s efforts to tax the financial sector

    March 02, 2012

    In an exclusive interview, Carsten Ibsen, head of group tax at Danske Bank, explains why he believes the financial sector is not undertaxed, why the European Commission’s proposal for a financial transactions tax (FTT) is a bad idea and why Denmark’s largest bank is not going to become a tax exile.

  • Egypt seeks VAT to satisfy IMF

    March 02, 2012

    Egypt is looking to alter its indirect tax system by replacing the sales tax with a VAT, on the instruction of the IMF.

  • Why Bulgarian VAT changes pose compliance challenge to multinationals

    March 02, 2012

    Companies operating in Bulgaria face compliance challenges and possible penalties after an amendment to the application of the country’s VAT laws.

  • How VAT could help developing countries’ tax collection problems

    February 28, 2012

    Efforts to replace aid to poor countries with tax as a more stable source of revenue have almost entirely focussed on the corporate sector. But a UK International Development Committee meeting in Parliament saw an interesting debate emerge on the role of VAT.

  • COMMENT: Why today was decisive for the future of Australia’s carbon and mining taxes

    February 27, 2012

    Australian prime minister Julia Gillard today saw off a direct challenge to her Labor party leadership from predecessor Kevin Rudd, but must quickly reunite the party if she wants to move forward with her indirect tax policies on carbon and mining.

  • Why African nations are turning to VAT to limit tax abuse

    February 24, 2012

    More than 70% of African countries have now adopted a VAT, and it increasingly seems to be the tax of choice for states across the continent looking to generate extra revenue, because it is a hard tax to avoid.

  • Why the EU remains defiant as global opposition to ETS intensifies

    February 23, 2012

    The EU is remaining defiant in the face of increasing international opposition to the extension of its Emissions Trading Scheme (ETS) to cover the aviation industry, which took effect on January 1 2012.

  • Carbon tax could hit South Africa within a year

    February 22, 2012

    As part of finance minister Pravin Gordhan’s 2012 budget, it was announced today that South Africa is considering the introduction of a carbon tax as early as next year.

  • UK must cut compliance burden and complexity of tax regime, says CBI

    February 22, 2012

    The Confederation of British Industry (CBI) signalled a general approval of Chancellor George Osborne’s tax policy yesterday, but warned he must get the details right to make the UK the most competitive regime in the G20.

  • Draft RDR guidance on VAT liability could lead to additional charges

    February 17, 2012

    HMRC’s revision of draft Retail Distribution Review (RDR) guidance on VAT liability has been well received by most financial advisers, but could lead to additional charges.

  • Gillard’s indirect tax plans still ruffling feathers

    February 17, 2012

    Not only has opposition to the Australian government’s carbon and mining taxes failed to subside as the implementation dates grow closer, it has even had a resurgence in recent weeks.

  • India: Negative list of services – a pre-cursor to GST?

    February 17, 2012

    The concept of having a negative list of services, taxing all services comprehensively with a small list of exempt services, has been a frequent subject matter of discussion in recent past especially since India is on a cusp of undertaking sweeping reforms of its taxation regime with the advent of the Direct Taxes Code and unified GST, explains Sachin Menon, head of indirect tax at KPMG India.

  • Tax transparency in the spotlight like never before

    February 17, 2012

    Companies around the world are beginning to understand the importance of transparency about their tax affairs and the reputational benefits of eschewing aggressive tax planning. They will have the opportunity to debate these crucial issues with administrators, activists and practitioners at International Tax Review's first Tax & Transparency Forum on May 2.

  • Why HMV and Channel Islands’ resistance to scrapping tax relief is futile

    February 16, 2012

    As the Channel Islands prepare to fight the scrapping of the UK’s low value consignment relief (LVCR) in a judicial review next month, Simon Fox, CEO of music retail company, HMV, argues that it may cause companies like his to relocate to Switzerland. Both, however, are likely to be shouting at the wind.

  • COMMENT: Why the UK’s tax regime means it is open for business

    February 13, 2012

    Opinion is divided as to what path UK chancellor George Osborne should take in his 2013 budget next month. The coalition government has consistently delivered the statement that “Britain is open for business”, but how is the UK ensuring it remains an attractive location for business and investment?

  • EXCLUSIVE: EC’s Manfred Bergmann cautions France against going it alone with the FTT

    February 13, 2012

    Manfred Bergmann, director for Indirect Taxation and Tax Administration at the European Commission, nicknamed Mr FTT in EU circles, is the man behind the EU’s proposed financial transactions tax. In part two of an exclusive interview, he discusses France’s decision to implement the tax unilaterally, looks at the problem of banks passing it on to customers and outlines the Commission’s timetable.

  • European VAT rises create compliance headaches

    February 10, 2012

    France, Cyprus and Croatia have become the latest European countries to hike VAT rates as taxpayers look on increasingly concerned.

  • FTT will hit end-users hardest, says EACT chairman

    February 10, 2012

    A European financial transaction tax (FTT) will hit end-users in the real economy – such as companies and pension funds – hardest, according to European Association of Corporate Treasurers (EACT) chairman Richard Raeburn.

  • The challenge of Mexico’s rapid transition to electronic customs reporting

    February 10, 2012

    Companies importing or exporting to Mexico must use an electronic reporting system to file customs information from March 1 2012, but despite the long-term benefits, there may be short-term headaches.

  • ANALYSIS: Why taxpayers should consider relocating to the UK

    February 08, 2012

    Slashing the corporate tax rate, reforming the controlled foreign company rules and blocking plans for a financial transactions tax are just three ways the government hopes to attract multinationals to relocate to the UK. International Tax Review investigates whether these steps will tempt companies to make the move.

  • EXCLUSIVE: EC’s Manfred Bergmann reveals why the FTT’s critics are wrong

    February 07, 2012

    Manfred Bergmann, director for Indirect Taxation and Tax Administration at the European Commission, nicknamed Mr FTT in EU circles, is the man behind the EU’s proposed financial transactions tax. In part one of an exclusive interview, he explains why critics are wrong to claim it will harm growth, and why the UK has nothing to fear.

  • COMMENT: Why protests against EU carbon tax on airlines are a load of hot air

    February 06, 2012

    Since airlines were brought into the EU Emissions Trading Scheme (ETS) last month, long-haul countries have been stepping up the noise of protests which will only hurt the environment and taxpayers.

  • Electronic Customs reporting to make Mexican trade more efficient

    February 03, 2012

    Companies importing or exporting to Mexico must use an electronic reporting system to file Customs information from March 1 2012.

  • EXPOSED: The “highway robbery” of Germany’s interest regime

    February 03, 2012

    Taxpayers are angry over Germany’s unfair enforcement of interest on old VAT errors even when there has never been any loss to the exchequer. International Tax Review investigates.

  • French FTT will only benefit UK, says Financial Secretary

    February 01, 2012

    Banks will leave France and relocate their financial transaction branches to the UK and other jurisdictions if President Nicolas Sarkozy goes ahead with the financial transactions tax (FTT), according to UK Financial Secretary to the Treasury Mark Hoban.

  • COMMENT: France’s decision to unilaterally tax financial transactions is a risk, but one worth taking

    January 30, 2012

    French President Nicolas Sarkozy has followed through with his promise to go it alone with a financial transactions tax (FTT). The announcement has already hit shares in the banking sector, but France should weather the short-term pain to see long-term gain.

  • SPECIAL REPORT: Everything you need to know about the Vodafone ruling

    January 30, 2012

    International Tax Review has compiled a special free pdf report on Vodafone’s Indian Supreme Court victory. View the ruling, read what industry had to say, and uncover what this decision means for your business.

  • Indian indirect tax collection surges

    January 27, 2012

    Indirect tax collections – comprising customs, central excise and service tax – rose to Rs 2,85,787 crore ($58 billion) during April to December. It is a significant boost to the government ahead of its plans to introduce GST.

  • What a Greek VAT U-turn would mean for multinationals

    January 27, 2012

    Rumours are rife that the Greek government will opt to reduce the VAT rate when it drafts a Bill for a new tax system next week.

  • Nike Thailand victory brings good news for importers

    January 26, 2012

    The Supreme Court of Thailand has ruled in favour of Nike in a dispute over royalties with the Customs Department. The case sets a welcome precedent for companies looking to import goods from a third party.

  • FTT could hit UK financial sector even if it opts out

    January 24, 2012

    The UK Lords Select Committee on the EU today heard the fears of financial institutions on the European Commission’s proposed financial transactions tax (FTT).

  • Carbon tax continues to inflame Australians

    January 20, 2012

    State treasuries in Australia have claimed that the nation’s planned carbon tax will have disastrous effects on state finances, by increasing costs and reducing the profits of government-owned electricity utilities that pay dividends to the state.

  • UK: Littlewoods opinion not the end of the road for compound interest debates

    January 20, 2012

    On January 12 2012, Advocate General Trestenjak’s Opinion in Case C-591/10 Littlewoods Retail Ltd and Others was published. This represents the next phase in the VAT compound interest journey. Should the Court of Justice of the European Union (CJEU) to follow the Advocate General’s Opinion in its judgment, it is very unlikely that this trip to Luxembourg will be the end of the road, argue Michael Anderson and Robert Waterson of Dorsey & Whitney.

  • Why EU FTT hitting cross-border transactions might not be so bad

    January 20, 2012

    The Alternative Investment Management Association (AIMA) believes the European Commission’s proposed financial transactions tax (FTT) could lead to a significant decrease in cross-border trading of financial instruments. But there are some who think this is exactly why the EU needs one.

  • Why France’s social VAT could make life harder for taxpayers

    January 20, 2012

    France is pressing ahead with what it is calling a social VAT to reduce labour costs and stimulate jobs, but it could end up producing bigger headaches for companies.

  • What the One Stop Shop will mean for EU taxpayers

    January 19, 2012

    Taxpayers will welcome news that a One Stop Shop (OSS) for EU trade across borders is on its way, after the European Council adopted a proposal advocating the scheme.

  • Australia progresses with GST law amendments

    January 13, 2012

    The Australian assistant treasurer has today announced a development in the amendment of the financial supply provisions of the goods and services tax (GST) law.

  • Why China’s carbon tax is not going to work

    January 13, 2012

    The Chinese government wants to introduce a carbon tax from 2015, however even if it is enacted, which remains doubtful, it is unlikely to help the country meet its climate commitments.

  • Should France go it alone with a Tobin tax?

    January 12, 2012

    With elections on the horizon, President Nicolas Sarkozy is pushing for a Financial Transaction Tax (FTT) with renewed vigour.

  • Malaysia: Customs audits on the rise

    January 11, 2012

    The intensification of audits by the Malaysian tax authorities should serve as an urgent call to businesses to enhance their indirect tax risk management activities, argues Tan Eng Yew of KPMG.

  • EXCLUSIVE: Saint-Amans will make VAT one of his top priorities

    January 10, 2012

    Speaking to International Tax Review today, Pascal Saint-Amans, who will replace Jeffrey Owens as the OECD’s head of tax policy and administration next month, said that formulating a set of VAT guidelines and creating a new Global Forum on VAT will be high up on his agenda.

  • Japan seeks tax rises despite opposition

    January 10, 2012

    In what acting Secretary General Shinji Tarutoko has described as a “make or break year”, the ruling Democratic Party of Japan is struggling to get the support required for tax hikes which the party sees as essential to “simultaneously achieve the goals of securing stable revenue sources for financing social security and regaining governmental fiscal health”.

  • China plans carbon tax

    January 06, 2012

    If the government’s proposals are enacted, China’s biggest polluters will face a new tax on their carbon emissions from 2015.

  • COMMENT: Why protests against EU carbon tax on airlines are a load of hot air

    January 06, 2012

    Since airlines were brought into the EU Emissions Trading Scheme (ETS) last month, long-haul countries have been stepping up the noise of protests which will only hurt the environment and taxpayers.

  • The real reason behind Poland’s mining tax

    January 06, 2012

    Disputes continue over Poland’s mining tax despite the announcement of a reduced rate this week, but one adviser claims the government’s real motivation for introducing the levy is the projected growth of Poland’s shale gas industry.

  • The VAT changes you need to know about in 2012

    January 06, 2012

    This month will be an uncomfortable one for taxpayers as VAT hikes come into force around the world. Here are the changes you need to be aware of.

  • Chinese airlines strike back against EU tax

    January 05, 2012

    While airlines were brought into the EU Emissions Trading Scheme (ETS) at the beginning of this week, Chinese airlines have today refused to pay the tax.

  • Why taxpayers should welcome India’s shift to a negative list of services

    January 03, 2012

    Aseem Chawla and Sandeep Chilana of Amarchand & Mangaldas tell International Tax Review why India’s shift to a negative list of services should help clients with compliance and avoiding disputes, although there may be some drawbacks in the future.


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