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Whether a company which issues new shares, and becomes listed on a stock market for that purpose, is to be regarded as making a supply for consideration for VAT purposes; and whether, depending on the answer to that question, VAT paid on services acquired in connection with the listing and share issue may be deductible.

Value added tax – Reduced rate of tax – Importation of works of art, collectors' items and antiques – Public auction of goods subject to temporary importation arrangements – Auctioneer's margin.

March 16 is the date for the UK Budget, the government announced on February 23 2005.

Sixth VAT Directive – Exemptions – Supplies of services and goods directly related to welfare and social security and protection of children and young persons – Bodies recognised as being of a ‘social character’ – Private bodies run for profit – Interpretation of Article 13A(1)(g) and (h).

With effect from January 1 2005 the amendments to the Polish Tax Code became effective, including that the tax authority is obliged, upon written request of the taxpayer, to issue binding advance tax rulings. A taxpayer that receives a ruling cannot be charged with any outstanding tax liability, provided that he conducted his transactions consistently with the tax authorities' interpretation of the tax law included in the ruling. The previously existing system of rulings had not offered such opportunity; the "old" rulings protected taxpayers against penalties but not against payment of the tax liability as such.

Connie Mack, chairman of the US President’s Advisory Panel on Federal Tax Reform, asked last Wednesday for greater input from taxpayers on the debate on ways to amend the US tax code.

Two senior US government tax officials, Barbara Angus and Gregory Nickerson, have left public service to set up their own tax consultancy firm. Angus & Nickerson opened for business in Washington, DC on February 7 2005.

At the outcome of the cabinet meeting on December 23 2004, the Belgian government announced plans to introduce legislation in June 2005 that will allow companies to deduct a notional (deemed) interest deduction on equity and retained earnings (not stated in the accounts) in calculating the taxable base. This measure will alleviate the different tax treatment between debt and equity, that is, borrowing or equity financing. At present, companies have more to gain from debt than equity financing, because loan interest is tax-deductible and dividend distributions are included in calculating the company's taxable base. In addition, Belgian tax law knows no general thin-capitalization rules.

Hans Eichel, Germany’s finance minister, has announced that the government wants reforms of the corporate tax system to be in place by 2007.

On December 21 2004 the Luxembourg Parliament passed the Budget Law for 2005. Although there will be no changes to tax rates, the Budget Law provides for an extension of the law of July 30 2002, which was due to expire in 2004, until the end of 2007. This law grants, among other things, reduced tax rates on capital gains realized upon disposal of land, higher depreciation rates for residential buildings and reduced real-estate transfer taxes. Capital gains from the disposal of real estate are taxed at 25% of the normal income tax rates, depreciation of qualifying buildings is 6% for the first six years and a credit of up to €20,000 ($26,000) is available for transfer taxes.