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  • Taxpayers will have to act now if they wish to change any arrangements because of revised thin capitalization rules due to be introduced in 2007. Parliament is unlikely to change the draft law, warns Eric Davoudet of Clifford Chance
  • The highest court in Canada has delivered its first verdicts on the general anti-avoidance rule. How the judges came to the decisions is as interesting as the decisions themselves, explain Edward Rowe and David Spiro of Blake, Cassels & Graydon
  • The Lok Sabha, or lower house, of the Indian parliament has passed a bill to set up a national tax tribunal, which will deal, primarily, with appeals against orders of the Customs, Excise and Service Tax Tribunal and Income Tax Appellate Tribunal.
  • US taxpayers will be able to request an automatic, six-month tax-filing extension for certain business returns from January 1 2006. Businesses will be able to request a six-month tax-filing extension, without a reason or signature. This simplifies the existing two-step process, although a tax-filing extension does not alter the tax-payment deadline.
  • China's banking regulator has proposed a reduction in business tax for banks. Liu Mingkang, chairman of the China Banking Regulatory Commission, also suggested that there should be a single income tax system for domestic and foreign institutions. Business tax for domestic banks is 5% of their total revenue, with income tax at 33% of profit. This figure is only 15% for foreign financial institutions.
  • The Indian government has extended the withholding tax exemption for airplanes until March 31 2006, after Indian airlines made a representation stating that this would make leasing of aircraft from foreign companies more economical. The extension will reduce the cost of leasing aircraft and engines from foreign lessors by up to 40%.
  • Glen Rossman, former vice-president of global taxation and customs at Cisco Systems, has joined the advisory board of Liquid Engines, which develops income tax management and planning software.
  • Jefferson Wells, the global provider of risk, control, compliance and financial process, has appointed Adrian Walker as Director of its UK tax division. He brings 17 years of accounting experience to the role and has worked in the past for KPMG and Ernst & Young.
  • Joel Walters took over as head of tax for Vodafone, a mobile phone service provider, on November 17. He replaces Lynne Patmore who left the company in the summer. Patmore joined RSM Robson Rhodes' London office in December as an international tax practioner.