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  • 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
  • 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
  • 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
  • Stradasfalti Srl v Agenzia delle Entrate Ufficio di Trento
    Whether national rules precluding deduction of input VAT on motor vehicles which are not intrinsic to the taxable person’s business activity as such, or on fuel for such vehicles, may be justified on the basis of Article 17(7) of the Sixth VAT Directive.
    June 21 2006
  • Administration de l’enregistrement et des domains v Eurodental Sàrl
    Sixth VAT Directive – Transactions within the territory of the country – Exemptions – Dental technicians – Right to deduct – Intra-Community supplies of goods and services – Exemptions – Intra-Community transactions which would also be exempt if they were purely domestic – Principle of neutrality.
    June 21 2006
  • Kingdom of Belgium and Forum 187 ASBL v Commission of the European Communities
    State aid – Existing aid regime – Tax regime for coordination centres established in Belgium – Application by an association – Admissibility – Commission Decision that the regime does not constitute aid – Change in the Commission’s appraisal – Article 87(1) EC – Protection of legitimate expectations – General principle of equal treatment.
    June 21 2006
  • Commission of the European Communities v Council of the European Union
    State aid – Existing aid scheme – Tax scheme for coordination centres established in Belgium – Competence of the Council.
    June 21 2006
  • Centro Equestre da Leziria Grande Lda v Bundesamt fur Finanzen
    Tax legislation – Tax on income – Article 59 of the EC Treaty (now, after amendment, Article 49 EC) – Equestrian dressage performances and lessons provided in a member state by a company established in another member state – Deductibility of expenses having an economic connection with the supply of services in the member state of taxation.
    June 21 2006
  • US Commissioner highlights tax concerns to Senate
    Mark Everson, the Internal Revenue Service commissioner - noted four issues in his June 13 speech to a Senate Committee on finance 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.
    June 18 2006
  • Grant Thornton gets new transfer pricing head
    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.
    June 18 2006
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