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The Internal Revenue Service (IRS) and US Treasury Department have issued proposed regulations under IRC section 269B addressing when a stapled foreign corporation will be treated as a US corporation for various purposes (regulation 101282-04). Two or more corporations are treated as stapled entities when more than 50% of the value of the shares of the corporations are subject to restrictions that require their shares to be transferred together.

According to the Belgian income tax code, the taxation of capital gains realized by individuals as substantial shareholders on the sale of shares in Belgian companies depends on the residence of the acquirer. If the acquirer is a foreign company, the capital gain will be (subject to further conditions) taxable in the hands of the vendor. However, if the acquirer is a Belgian company and certain anti-avoidance conditions are satisfied, the capital gain is tax exempt. These rules complicate acquisition structures by the need to interpose a Belgian acquisition vehicle.

George Gillham, a former inspector of taxes with the UK Inland Revenue, joined the law firm Dorsey & Whitney on September 6 2004. Gillham will work with Philip Martin, a high-profile tax litigator and former tax director at the retail company Marks & Spencer.

US law firm Greenberg Traurig hired Michelle Ferreira, a former Internal Revenue Service (IRS) litigator, as of counsel on September 8 2004. During her eight-year tenure in the IRS attorney's office Ferreira tried more than 24 cases. She will specialize in estate tax planning at Greenberg Traurig.

Companies seeking tax advice from chartered accountants in New Zealand will get greater privacy after the country's finance ministry announced new rules to level the playing field between accountants and lawyers.

The recent decision of the European Court of Justice in the Manninen case (C-319/02) has significant implications for the UK's imputation system of dividend taxation.

Adam Craig of Deloitte in London analyzes the potential and progress-to-date of harmonizing corporate taxes in Europe

When South Africa moved to the worldwide basis of taxing income and capital gains in 2000 and 2001, foreign dividends were taxed on a look-through basis. One traced the dividend through a chain of companies until the underlying profit was identified and a proportionate share of that profit was taxed in the South African shareholder's hands, with credit being given for foreign corporate and withholding taxes paid.

With the introduction of the business scale taxation and with companies using capital reductions to improve their financial conditions and to implement corporate reorganizations, there has been growing interest in the local tax consequences of capital reductions.

Recently in Sutron Corporation (268 ITR 156), Indian advance ruling authority (AAR) examined the issue of whether the presence of a country manager in India constitutes a place of business and hence a permanent establishment (PE) of a company. In this case, a US company entered into a contract with the Government of Andhra Pradesh (GAP) in India, under which it was required to supply goods for erecting remote stations and also to provide local materials and services.