Search results for

Angus Wilson, Lydia Simpson and Darren Mellor-Clark KPMG has boosted its UK practice with three senior appointments.

Sean Foley The Internal Revenue Service (IRS) and Treasury department recently identified a new transaction of interest in which a US taxpayer (i) interposes a US partnership between higher-tier controlled foreign corporations (CFCs) and a lower-tier CFC and (ii) takes the position that subpart F income generated by the lower-tier CFC is not included in the US taxpayer's income under section 951(a). IRS notice 2009-7 explains that the IRS and Treasury department are concerned that this transaction has the potential for tax avoidance or evasion, but lack sufficient information to determine if designation as a tax avoidance transaction is appropriate. Consequently, the IRS and Treasury department have identified this transaction, along with substantially similar transactions, as transactions of interest.

Edward Tanenbaum On March 2 2009, Senator Carl Levin (D-MI) introduced the Stop Tax Haven Abuse Act, S 506. The stated goal of the bill is to combat tax evasion through tax havens, money laundering and the use of tax shelters.

Rajendra Nayak Ganesh Pai A recent ruling of the Bombay High Court (HC) in the case of E*Trade Maur-itius Limited (2009-TIOL-166-HC-MUM-IT) held that the amount deposited by the purchasing company with the HC earlier, be released in favour of the Indian Tax Authority to pay the withholding tax liability. This liability related to a transaction involving a transfer of shares of an Indian company by a Mauritius tax resident company (taxpayer) to the purchasing company. The taxpayer was a company incorporated in Mauritius and was granted a tax residency certificate by the Mauritius tax authorities. The taxpayer sold its existing stake in an Indian listed company which resulted in capital gains to the taxpayer. Under article 13(4) of the treaty, gains derived by a resident of Mauritius from the sale of shares of an Indian company are exempt from tax in India. Further, the Supreme Court of India in the case of UOI vs. Azadi Bachao Andolan (263 ITR 706) earlier upheld that a tax residency certificate issued by the Mauritian tax authorities would be sufficient proof for a Mauritius company to be regarded as a resident of Mauritius and claim the benefits of the treaty. The same has also been clarified by an administrative circular.

Patrick Mischo Law firm Allen & Overy has promoted Patrick Mischo to tax partner.

Pravin Gordhan The former head of South Africa's tax authority has been appointed the country's finance minister. Pravin Gordhan had been commissioner of the South African revenue service for the past 10 years.

Elzbieta Serwinska The season for VAT refund claims for 2008 has just begun. The Polish Administrative Court has recently issued decisions on refund applications. A number of Court decisions relate to foreign taxpayers. They appeal more often against tax office decisions. The Court decisions have a significant impact on the tax authorities' approach to processing refund applications and therefore are a very valuable tool during disputes.

Ingrid Anne Kinden The Norwegian revenue authorities have issued an informal warning stating they will focus on thin capitalisation and the interest level on group loans in 2009 and going forward. The area of focus will especially be private equity structures which are typically heavily leveraged using group loans/parent companies hybrid loans.

Companies and even fellow Democrats are lining up to fight President Obama over his plans to reform America's international tax rules. By Ralph Cunningham, London and Catherine Snowdon, New York

The potential of tax policy to help combat climate change will be lost unless governments start cooperating, argue Mark Schofield and Harry Manisty of PricewaterhouseCoopers