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  • The US Internal Revenue Service (IRS) has collected $3.2 billion from participants in a banned tax shelter scheme after a settlement programme announced last year. The complex shelters, known as Son of Boss, were created in the late 1990s and were designed to generate artificial tax losses to offset taxable income. When the IRS collects all the payments the total could reach $3.5 billion.
  • The UK Inland Revenue announced last Friday that discussions on a new double taxation agreement with China would be held soon and invited representations from interested parties. The existing double taxation agreement has been in place since 1984.
  • Foreign companies in China are set to lose their preferential tax rate after a state official said that the process of equalizing tax treatment for foreign and domestic companies is “highly likely” to begin this year
  • The Tax Amendment Act 2004 (Abgabenänderungsgesetz) has brought about considerable changes in Austria's exit taxation regime
  • There will be no let up in Russia's tough stance on tax evasion according to Igor Shuvalov, assistant to president Vladimir Putin. In a speech on March 29, Shuvalov said that reducing tax evasion and tightening the tax administration are Russia's paramount tasks.
  • The Irish government has published draft legislation to implement the tax and legal changes to common contractual funds (CCF) that are contained in the Finance Act 2005
  • The Australian Taxation Office's (ATO) concern that multinationals are continually shifting profits has led to increased scrutiny of transfer pricing practices
  • Roger Agnelli, president of Companhia Vale do Rio Doce (CVRD), a Brazilian multinational mining company, has said that the country’s high tax burden could be discouraging billions of dollars worth of foreign direct investment
  • Companies with operations in India face mounting confusion and complexity over the introduction on Friday of the country’s new value-added tax (VAT) system
  • The National Tax Tribunal issued a noteworthy comment on the withholding tax treatment of a payment for software developed by a foreign company and distributed by a Japanese company. The tribunal case discusses payments for software products from the Japanese distribution company to the foreign company by classifying them into the following three types. It should be noted that the classification of the software transactions should be determined based on the facts and substance rather than contract terms.