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  • The House of Lords has ruled that Deutsche Morgan Grenfell, an investment bank, is entitled to reclaim tax it paid the Inland Revenue by mistake in the 1990s. The judgement, which was 4-1 in favour, went along with a verdict that the High Court gave, which contradicted an appeal court ruling that said taxpayers have six years from the time the tax was paid, rather than six years from the time the mistake was discovered, to claim refunds
  • An IMF working paper has questioned whether some of the countries that have introduced a flat tax system in recent years will be able to retain it.
  • The Internal Revenue Service said that the arbitration pilot program, where the authorities and the taxpayer agree to have a third party make a binding decision, is here to stay.
  • Telenor, a Norwegian telecommunications company, has won NKr 2.4 billion ($359 million) from the Norwegian tax authorities. Norway had refused a tax deduction that Telenor claimed for shares sold at a loss.
  • The Tax Reform Commission – set up by the UK's opposition party the Conservatives, has proposed slashing the corporate tax rate by five percentage points from 30% to 25%. The Commission's report calls for £21 billion worth of tax cuts. But David Cameron, the party leader, is not expected to fully endorse the report.
  • Bulgaria will knock one-third off its corporate levy, which is now 15%, in January 2007. Bulgaria will join the EU at the start of next year, and it is hoped that the cut will encourage pan-European investment.
  • Anton Hume, formerly of Grant Thornton, has rejoined his old firm BDO Stoy Hayward as head of transfer pricing after an 11-year absence.
  • Her Majesty's Revenue and Customs has published guidelines on new tests that managers of offshore investment funds will have to satisfy to retain their tax-free status. Companies have until January 12 2007 to comment on the guidelines, which are in draft form.
  • The US Senate Finance Committee has published Additional Options To Improve Tax Compliance, the recommendations of the Joint Committee on Taxation for closing the tax gap - the difference between what the IRS thinks it's owed and what it collects. The tax gap is thought to be $345 billion.
  • The US and the UK signed a competent authority agreement under the 2001 US-UK double taxation convention to prevent double taxation and evasion of income and capital gains taxes.