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  • Test Claimants in the Thin Cap Group Litigation v Commissioners of Inland Revenue
    Interpretation of Articles 43, 49 and 56 EC – National tax legislation – Ability of a company established on national territory to deduct for tax purposes interest paid on a loan granted by its parent company – Situation differing according to the state where the parent company established.
    June 28 2006
  • US Ways and Means Committee discuss competitiveness
    The hearing on the impact of international tax reform on US competitiveness took place on June 22.
    June 26 2006
  • Peer Steinbrueck says he will cut German corporate tax
    Peer Steinbrueck, the German finance minister, said on June 22 he does plan cut corporate tax to as low as 29% after 2008. The plans, which were leaked to the German media a fortnight ago, would take Germany's corporate tax rate below the OECD average, but have been attacked by business leaders and left-wing politicians. Germany has the third highest rate in the OECD at the moment and the minister hopes a cut will encourage investment.
    June 26 2006
  • Cambodia extends textile industry tax holiday
    Cambodia said the tax holiday for the clothing industry would be extended until the end of 2007 to stop companies moving to Vietnam.
    June 26 2006
  • Australia plans to simplify tax system
    Peter Costello, the Australian treasurer, said a new bill will cut tax legislation by 4100 pages. The Tax Laws Amendment (Repeal of Inoperative Provisions) Bill, released on June 22, will also give some terms with multiple definitions a single meaning.
    June 26 2006
  • Israeli VAT cut announced
    Avraham Hirschson, Israel's finance minister, said VAT will fall by 6% from 16.5% to 15.5% on July 1. Hirschson said the cut will raise revenues by increasing spending.
    June 26 2006
  • Ian Paisley asks for Northern Ireland corporation tax cut
    Ian Paisley, leader of the Democratic Unionist party, said that the Northern Ireland corporate tax rate should be dropped because of the low rate of 12.5% in Ireland.
    June 26 2006
  • ECJ rules in favour of Belgian coordination centres
    Belgian coordination centres, where a multinational centralizes one of its business activities in the jurisdiction, can benefit from tax breaks until 2010, the European Court of Justice (ECJ) ruled on June 22. The ECJ said it was inconsistent to take away the tax breaks from coordination centres that would lose their status, which was renewed on a 10-year basis, before 2010. But the ECJ said the tax breaks, which allow firms to avoid a levy on profits, did contravene EU law.
    June 26 2006
  • IRS gets new investigations chief
    John Imhoff was appointed deputy chief of criminal investigation of the IRS on June 21.
    June 26 2006
  • HMRC consider avoidance rule
    HM Revenue & Customs, the UK's tax authority, has said it will launch a study into the introduction of a general anti-avoidance rule.
    June 26 2006
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