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  • Peer Steinbrueck plans to reduce the federal corporate tax rate from 25% to between 16% and 12%, according to the German media. With an average state corporate tax levy of 13%, this would bring the corporate tax rate down to between 28% and 25%, less than the present OECD average. Germany has the third highest rate in the OECD at the moment. The reduction would be implemented in 2008.
  • 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.
  • Failure of a member state to fulfil obligations – Articles 28 EC and 49 EC – Sixth VAT Directive – Articles 21 and 22 – Obligation for a taxable person who is established in a member state other than the one where he carries out taxable transactions to appoint a tax representative who is not directly liable to pay VAT.
  • Directive 69/335/EEC – Indirect taxes on the raising of capital – Merger of companies – Rectification of the land register – Charging of a fee – Whether a ‘transfer duty’ – Conditions for charging the fee.
  • Tax provisions – Harmonisation of laws – Directive 92/12/EEC – Excise duty – Tax stamps – Sixth VAT Directive – Articles 2 and 27 – Disappearance of excise stamps.
  • Sixth VAT Directive – Article (6)(2)(a) – Article 11(A)(1)(c) – Use for private purposes by a taxable person of part of a building forming, in its entirety, part of the assets of his business – Treatment of private use as a supply of services for consideration – Determination of the taxable amount – Definition of ‘full cost’ to the taxable person of providing those services.
  • 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
  • Clifford Chance announced Christopher Roman's appointment as counsel on June 7. Roman specializes in tax work involving M&A, capital markets and financial products, real estate investment trusts and private equity fund formation
  • 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
  • EU member states have implemented the EC Interest and Royalties Directive on time, but have differed in their interpretation of key provisions, according to an independent survey