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By Tobias Lintvelt, Koichi Sekiya and Yasuko Masaki, Shin Nihon Ernst & Young, Japan

By Michael Evans (Australia), David Stevens (Hong Kong), Kok Shang Lam (Singapore) and John Cantin (New Zealand)

By Yves Robert (France)*, Andreas Patzner (Germany) and Sabrina Navarra (Italy)

By Robert Clair (US), Miodrag Verwoert (US), Kees van Meel (US) and Justin Kyte (UK)

By Erica Howard (UK), Mohamed Serokh (UK), Chris Abbiss (Hong Kong), Gianni de Robertis (Italy) and Stephen Morse (UK)

The Bangalore Tribunal in the case of Samsung Electronics Company Ltd. vs ITO (2005 93 TTJ 658), held that the payment for purchase of off-the-shelf computer programs for its business use from foreign suppliers, is not royalty taxable in India.

The judgment delivered by the European Court of Justice (ECJ) in the Kretztechnik AB vs Finanzamt Linz case is of importance to anyone engaged in value-added-tax-exempt financial transactions - issuing equity or debt for example. The case was directly concerned with value-added tax (VAT) incurred on professional fees related to the issue of shares by the taxpayer on the Frankfurt Stock Exchange. In that case, the Austrian authorities had refused to allow deductibility of VAT on these fees on the grounds that they related to an exempt supply.

The Legislative Decree dated May 27 2005, which is not yet published in the Italian official gazette as of June 30 2005 (the decree) finally implemented Council Directive 2003/49/EC of June 3 2003 on a common system of taxation applicable to interest and royalty payments made between associated companies of different member states (the directive), whose term expired on January 1 2004.

All local and foreign multinational groups must comply with the transfer pricing rules established in article 38 of the Chilean Income Tax Law, which refers to the determination of arm's-length prices charged between related entities on the acquisition or supply of goods and/or services. Within the framework set out by a recent tax authority audit plan on additional tax, a local tax authority can request the filing of two sworn statements.

The tax and legal rulebook to facilitate cross-border mergers of companies within the EU is expanding all the time. However, Germany is one member state which still requires domestic implementation legislation, explains Jürgen Hartmann