Several organisations, including the Tax Executives Institute (TEI) have written to Indian prime minister Manmohan Singh and finance minister Pranab Mukherjee, outlining their objections to the government’s decision to retrospectively amend the tax code. Here, the TEI expands on why it has objected.
When undertaking a domestic transaction, all parties generally share the same principles regarding what needs to be done to close the deal. But this is not the case for cross-border transactions, where such harmony is often not achieved.
At the beginning of this month, when Japanese reforms became effective, the US became the country with the world’s highest corporate tax rate. While some point to lower actual effective tax rates, for most this is the straw that broke the camel’s back, and Americans want the reform process to be sped up.
With an increasing interest in international tax norms and trying to apply best practices, there is increasing uncertainty for taxpayers and tax administrations. One result of all of this, coupled with the fact that authorities are aggressively chasing revenue to ease the effects of the financial crisis, is that countries are looking to expand the tax base.
The Finnish government has announced new incentives targeted at stimulating economic growth, including a tax credit for companies related to the salaries of personnel involved in research and development (R&D).
Delegates at last week’s ABA/IFA/IBA 12th Annual Tax Planning Strategies conference in Vienna, Austria, heard how the UK’s reform of its controlled foreign company (CFC) legislation is finally close to being completed, and that the changes should be welcomed.
