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  • On January 20, the Spanish government published the draft of the second piece of the planned tax reform for 2006 (to be in force from January 1 2007). The first piece, which deals with anti-abuse measures, was also made public recently and was analyzed in a previous issue of the magazine.
  • The new treaty between Poland and Sweden was signed on November 19 2004 and is awaiting publication. The new treaty should come into force from January 1 2006 but the lack of publication may defer implementation.
  • On April 29 2005, the Dutch Ministry of Finance issued a white paper on reform of the Dutch corporate tax system in 2007. In anticipation of the debate on the white paper, in September 2005 the secretary of finance presented a bill including several proposed measures from the white paper which have come into force on January 1 2006.
  • Firms that provide legal, tax and auditing advice in Mexico are up in arms over a move to toughen the country's independence rules. Baker & McKenzie, a law firm, who wrote a government-commissioned report on auditor independence, has rejected suggestions that it will necessarily secure a larger part of the tax advice market if the proposal is enacted. It maintains that any change will only relate to aggressive tax advice.
  • The American Jobs Creation Act made many changes to the Internal Revenue Code, but one in particular has far-reaching consequences for US aircraft lessors. It could mean that more will base themselves in Ireland, believes Garry Burke of Pembroke Capital
  • A low corporate tax rate has helped Ireland secure a considerable amount of investment since a 10% rate was introduced in 1980. The rate has since gone up to 12.5% but it has not stopped companies, particularly from the US, from setting up in the country
  • Switzerland is about to make its value added tax system more attractive for businesses, report Mathias Bopp and Michelle Heer of PricewaterhouseCoopers
  • The tax reform plan for 2006 includes the following treatments of corporate reorganizations and M&A.
  • The Chilean IRS confirmed through a couple of recent rulings that the legal provision which prevents the IRS from exercising its authority to appraise the values used in a transaction within a reorganization process is applicable to non-Chilean entities.
  • New tax treaties for the avoidance of double taxation between Austria and Lithuania, Mexico, Moldova, Poland and San Marino entered into force on January 1 2006; the tax treaty with Switzerland shall be amended with effect as of the same date.