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Paolo Giacometti Law decree number 78 dated July 1 2009 (the decree), as converted into law by law number 102 dated August 3 2009, introduced several new provisions aimed at, among other things, tackling international tax evasion and revising the controlled foreign company (the CFC) regime.

Jobst Wilmanns Chayalaak Chutima On July 17 2009 the finance ministry released the first draft of a decree giving guidance on cross-border transfers of functions between related parties. This decree should be the final action in a ministerial campaign to ensure taxation of the actual value of functions transferred abroad in the course of international group restructurings. It follows a statutory order of May 2008.

Stephen Nelson On June 4 2009, the State Administration of Taxation (SAT) issued a circular on the pre-tax deductibility of loan interest resulting from overdue paid-in capital (Guo Shui Han [2009] number 312). The circular provides that where the investor(s) does not contribute in time, the interest incurred for the amount of overdue paid-in capital cannot be deducted before enterprise income tax. The principle is that such liability should be born by the investor rather than the invested enterprise, and the interest is not a reasonable expenditure of the invested enterprise and hence cannot be deducted before tax.

Ian Farmer On June 5 2009 Treasury released a consultation paper stating that new arrangements regarding employee share schemes would commence on July 1 2009 – providing more certainty for employers and their employees.

Mark Lawson, head of tax for Northern Europe for CIBA, a global chemicals company, tells Georgiana Head that the key to managing tax risk is dealing with problems before they become issues

Juan Guillermo Ruiz, and Sebastián Villaveces of Posse, Herrera & Ruiz Abogados alert taxpayers to the use of legal stability agreements in Colombia

The first budget of the new Indian government proposed a new way of resolving tax disputes, changes to transfer pricing provisions and modifications to the system of tax holidays, explain Vispi Patel and Rajesh Athavale of Economic Laws Practice

Brazil is facing one of the most important changes in its tax system. Roberto Haddad of KPMG explains how a new concept of disconnection between the tax and the accounting computations has developed

HM Revenue and Customs recently issued new rules for senior accounting officers in UK multinationals. The tax administration says companies with reasonable processes in place should not have to make significant changes to comply with the rules. Robert Thomas, European tax director at Xerox, considers whether or not this is the case.

By Jack Grocott