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  • The UK's rules on thin-capitalization comply with EU law, according to an advocate-general of the European Court of Justice because they are applied on an arm's-length basis, but Leendert Geelhoed believes a taxpayer should be allowed to deduct the cost of funding a subsidiary if it can show that there was a commercial reason for the funding method it chose.
  • The EU's council of economics and finance ministers agreed to renew the value-added tax arrangements for e-commerce services, including taxing broadcasting services and certain electronically-supplied services from third countries, for the July 1 2006 – December 31 2006 period, at its meeting on June 7.
  • Mark Everson, the Internal Revenue Service commissioner - noted four issues in his June 13 speech to Senate Finance Committee on compliance concerns relative to large and mid-size businesses. Everson said globalization, the increasing complexity of law and business transactions, and the growing book tax gap - between after-tax profits and declared taxable income – had all created a more challenging climate for the IRS.
  • Clarke Norton will become a managing director at Duff & Phelps' San Francisco transfer pricing practice. Norton joined from FTI Consulting, where she headed the US transfer pricing department. In Los Angeles, Ray Brown, Paul Burns and Stephanie Graham joined the transfer pricing group. The moves were announced on June 8.
  • The Bundesrat upper house of the German parliament voted in favour of the three percentage point increase, the largest tax increase in the state since World War II, on June 16. The Bundestag, the lower house, approved the increase on May 19. The increase from 16% to 19% will be implemented on January 1 2007.
  • Taxand, a global independent alliance of tax advisers, has expanded to include eight new firms. The countries represented are Canada, China, Cyprus, Norway, Romania, Portugal, Colombia and Peru.
  • Appleby Spurling Hunter and Bailhache Labesse, two leading offshore firms, are to merge on September 1 to create what the two claim is "the only offshore provider of legal, fiduciary and administrative services with a major foothold in four of the world's leading offshore business centres – Bermuda, the British Virgin Islands, the Cayman Islands and Jersey".
  • Enrique Rayon was named as head of the US west coast transfer pricing team on June 12. Grant Thornton's west coast practice covers the states of California, Arizona, Oregon, Washington, Hawaii, Utah, Nevada, Arizona and New Mexico.
  • In October 2006, KPMG will add 10 partners to its UK tax practice. The ten come from across the UK, including Leeds, Manchester, London and Reading.
  • Andy Todd, tax director at Aviva's life insurance group, will join Deloitte's UK insurance industry practice as a tax partner in September. Before joining Aviva, Todd was at Arthur Andersen