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In Switzerland there is at present no legal basis for the taxation of equity-based securities, i.e. shares issued to employees and employee stock options. The legal ambiguity in the taxation of options has led the Federal Department of Finance to mandate a federal law on the taxation of equity-based participation plans. This legal draft was submitted to parliament for discussion in November 2004.

In view of the growing volume of merger and acquisition activities in Taiwan, and the fact that, previously in the public tax ruling Tai-Tsai-Sheui 09604558950, issued on January 4 2008 by the Ministry of Finance (MOF), only gains realised on fixed assets upon merger by the dissolving company is clearly stipulated to be subject to 25% corporate income tax assessment at the dissolving company's level. Without further clarification from the tax authority, the public is left to wonder whether, by virtue of the ruling, the dissolving company may also be taxed for any goodwill/premium realised from a merger transaction.

Carl Pihlgren Sara Bolmstrand A Swedish company can normally claim a credit against corporate income tax liability for comparable taxes paid abroad, provided the foreign source income is also included in the tax base for the Swedish tax assessment. Sweden applies a so called overall tax credit system.

Peter Dachs The new Revenue laws amendment bill is in the process of being enacted. This bill introduces the new dividend definition referred to in previous articles. This is part of the process in South Africa of moving to a 10% dividend withholding tax. In this regard the South African Revenue Service has re-negotiated key double tax agreements in order to allow South Africa at least a 5% taxing rights in respect of dividends declared by South African entities to non-resident shareholders.

Alex Milcev There are several important changes to the tax law taking effect in 2009.

Thomas Pippos On November 8 2008 New Zealand saw the nine year centre left Labour-led government toppled by a centre-right National-led government.

Paul Chambers Samantha Nonnenkamp On October 15, the Luxembourg parliament voted a law that includes measures designed to improve the legal framework of the Luxembourg financial sector. The law includes, among other things, provisions aimed at making the regime applicable to investment companies in risk capital (Société d'Investissement en Capital Risque, SICAR) more attractive. The law was published in the Luxembourg Official Gazette on October 29 2008 and has now entered into force.

Irish company law has introduced legislation facilitating the cross-border merger of an Irish limited liability company with a limited liability company in the European Economic Area. The Irish taxation treatment of cross-border mergers has, for quite some time, been provided for in Irish tax legislation and so the addition of the company law machinery to facilitate such transactions is a much welcome development.

Some of the world's most powerful politicians have blamed tax havens for contributing to the financial crisis and have called for them to be abolished. Joanna Faith finds out if these calls are justified or whether world leaders have found a convenient scapegoat.

Heiko Stoll and Stefan Skulesch of Simmons & Simmons outline recent developments in the case law of the European Court of Justice