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  • Issued on March 15, Draft Taxation Ruling TR 2006/D3, sets out the Australian Taxation Commissioner's preliminary view on what constitutes a "payment under a contract for works or related activities" for the purposes of withholding tax rules that apply for certain payments to non-residents. The draft ruling provides guidance as to when an obligation to withhold an amount arises.
  • Tax demands for oil industry Tax disputes in both Ecuador and Venezuela have underlined how some South American nations are using tax rates to increase the revenue they collect from oil companies.
  • The UK corporate tax community believed Gordon Brown, the UK chancellor of the exchequer, wasted the opportunity of his budget speech in March to simplify and enhance the competitiveness of the UK tax system.
  • The Internal Revenue Service (IRS) has just released Notice 2006-35 stating that branches of financial institutions will no longer be permitted after December 31 2006 to act as Qualified Intermediaries in countries that do not have IRS-approved "know your customer" (KYC) rules.
  • In a previous issue of the magazine, we analyzed some of the main features of the major tax reform that the Spanish Ministry of Finance published in January. As anticipated, some relevant modifications have been finally introduced before its submission to the Spanish parliament.
  • The Luxembourg Administrative Tribunal in a decision released on March 13 2006 (No 19691) clarifies when a holding 1929 company converted into a fully taxable company becomes subject to Net Worth Tax (NWT) in Luxembourg (companies benefiting from the Holding 1929 regime are exempt from this tax).
  • Lone Star, a US investment fund, has donated W100 billion ($106 million) to Korea from the profits of the sale of Korea Exchange Bank. The Korean authorities are investigating Lone Star as part of a tax probe into offshore funds, which began on April 24
  • The chairman of the Senate Finance committee, which is responsible for tax writing, said that tax reform would be delayed until next year. Chairman Charles Grassley also said that policy makers should try to find a way to cut the corporate tax rate, which at 40% is one of the highest in the world.
  • India's indirect taxes regime is a mish-mash of central, state and local rules. The introduction of a goods and services tax regime in 2010 should help industry understand its compliance obligations better, believes Vivek Mishra of Ernst & Young
  • Ricardo Escobar has become the first practising tax lawyer to become head of Chile's tax authorities (IRS) since the country returned to democracy in 1990.