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A new study has found that Russian taxpayers want the tax administration to develop a way of dealing with complaints without resorting to litigation.

A recent IRS ruling (PLR 200532036) illustrates one solution to problems stemming from the all-too-common occurrence of a so-called sandwich in a cross-border holding company structure. The solution did not eliminate the sandwich, but used a section 355 spin-off to enable a foreign shareholder to claim an indirect foreign tax credit for taxes paid by a foreign subsidiary owned by the foreign shareholder's US consolidated group.

The Chilean Internal Revenue Service, by Ruling 3055 of August 18 2005 repeated its previous opinion with regard to the availability of the use of the value-added tax (VAT) credit originating from the payment of premiums of life insurance and health insurance, contracted by the company in the benefit of its employees.

The deputy head of the tax service's banking department has been arrested by the FSB security police on a charge of demanding $1 million from the chairman of a Moscow bank to reduce the bank's tax bill.

The Italian government has published Law Decree No 203 in the Italian Official Gazette which has entered into force for all sales of qualifying shareholdings made from October 4. The decree has made a number of changes to the Italian participation regime. The most important of these involve the capital gains participation exemption being reduced from a 100% to a 95% exemption and the minimum holding period being extended from 12 to 18 months.

One of the typical controversial issues in the Spanish tax system has traditionally been tax refunds to non-residents, where the refund is based on tax treaty provisions. This was contentious because under the Spanish General Taxation Law, resident taxpayers are entitled to claim a refund of any taxes incorrectly paid within a four-year period (before 1998, five years), a time limit that applied to non-residents, but only where they did not claim the refund under the provisions of a specific tax treaty (either because they were not resident in a country with which Spain had a tax treaty or because they were not entitled to it). In the latter case, the time limits were traditionally shorter.

It appears the National Tax Agency (NTA) is now taking the position that the Japanese tax-haven rule should be applied to certain Hong Kong subsidiaries of Japanese parent companies where the subsidiary operates its business under an arrangement of consignment manufacturing with a Chinese subcontractor.

Luca Dezzani of Dewey Ballantine discusses the issues a taxpayer must take into account when using an acquisition structure in a leveraged buy-out in Italy

Arnaldo Salvatore of Macchi di Cellere Gangemi highlights the value-added tax (VAT) issues relating to transactions concerning green certificates

A well-balanced interpretation of anti-avoidance provisions is essential if trust is to be created between taxpayers and tax authorities, according to Marco Da Re and Davide Bergami of Ernst & Young, who analyze some recent cases