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  • Pete Miller of Ernst & Young argues that the European Company, Societas Europaea or SE, that is part of the EU Mergers Directive, is part of what is probably a move towards greater harmonization of company law and regulation throughout the EU
  • 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
  • Demonstrate your knowledge in our test on the tax issues that matter
  • 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.
  • The US House of Representatives finally caught up with the Senate in the first week of December, passing its own form of tax cut reconciliation legislation. The Senate had passed its own version before the Thanksgiving recess in November.
  • 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%.
  • 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.
  • 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.