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  • The Channel Islands have today lost their battle to overturn the UK government’s decision to block low value consignment relief (LVCR).
  • 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.
  • A lesser-known part of the Foreign Account Tax Compliance Act (FATCA) will prevent US issuers from selling bearer debt to foreign investors from next week, which may hit demand for US bonds in the European market because of the increased compliance requirements for holders to benefit from US withholding tax exemptions.
  • Rolf Wüthrich, of burckhardt, examines the process of corporate immigration of existing companies into Switzerland as an alternative to establishing a new Swiss company when seeking a tax efficient reorganisation.
  • Hans Grimbergen and Ivo Middelink of Ernst & Young look at the impact of Dutch Supreme Court rulings limiting the tax authorities’ ability to use transfer pricing principles to challenge related-party debt financing, and examine recently introduced rules on leveraged acquisition vehicles.
  • In Mexico, earn-out in transactions is an effective and productive tool that reduces the valuations gaps and allows the risk of the operation to be shared with the seller. However, Yazmin Caceres of PwC explains that before embarking on this route, analysing the tax consequences is vital.
  • M&A activity in India has significantly contributed to consistent economic growth over the past 20 years. This growth has led to increased evasion and avoidance and the government is now clamping down on transactions. Praveen Bhambani and Dheeraj Chaurasia of PwC discuss the significant developments on the Indian M&A tax front.
  • The UK government’s policy of cutting the corporate tax rate has had an effect on the Prudential’s tax position.
  • Hansjoachim Koehler & Axel Mielke of PwC explain that the German distressed M&A market is springing back into life and offer some advice on how to mitigate the tax risks of undertaking such transactions.
  • Though it occupies a secure position as a prime location for global investors, Brazil has a tax regime that presents particular risks and opportunities that need to be considered throughout a transaction, explain Andrea Weichert and Erik Smith of Ernst & Young.