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  • Hungary's favourable tax regime for offshore companies ends in 2005. But the country's tax system will still be attractive to international business, believe Jacques de Servigny and Orsolya Bárdosi of Gide Loyrette Nouel
  • The European Commission has approved Ireland's holding company regime, which provides for a tax exemption on chargeable gains arising from the disposal of shares, or assets related to those shares, in some subsidiaries. The regime is part of a package of measures designed to increase Ireland's attractiveness as a holding company location.
  • The UK Treasury on September 21 2004 introduced a new package of tax breaks for the film industry, replacing the so-called section 48 incentives. The UK government decided to amend the scheme after a crackdown in February on partnership schemes (often used to fund UK films) that manipulated tax relief to create claims for losses in excess of the capital at risk.
  • Domestic companies are now subject to thin-capitalization rules in Germany. Taxpayers should examine each structure before deciding whether to take steps to comply with the changes, urge Ralph Dautel, Jochen Murach and Alexander Pupeter of P+P Pöllath + Partners
  • India's Central Board of Direct Taxes (CBDT) has issued an instruction that will benefit Indian and UK taxpayers involved in tax disputes under the two countries' double taxation agreement (DTA).
  • Donald Korb: Handling transfer pricing
  • The European Court of Justice (ECJ) struck out again at national tax systems throughout the EU on September 7 2004, when it ruled that a Finnish man was entitled to a tax credit under Finland's tax system on the dividend he received from a foreign company.
  • The European Commission has adopted a strategy on corporate tax compliance to head off future scandals involving financial malpractice. The strategy, which was released on September 30, calls for actions at the global level to foster company tax transparency and actions at the EU level to strengthen the work of tax administrators and to improve monitoring of companies.
  • It is common for acquisitions to be conducted in the US on a tax-free basis through stock-for-stock exchanges. Assume that a European company (EuropeCo) lists its shares in the US and desires to acquire a US company (US Target) by providing a mix of EuropeCo shares and cash. Normally this can be done by EuropeCo forming a US acquisition vehicle (US Newco) and US Target mergers into US Newco, providing EuropeCo shares and cash to the former Target shareholders.
  • The German tax practice of US law firm White & Case hired Christoph Schröder, formerly a member of Commerzbank's corporate finance team, on September 15 2004. As a partner at White & Case, Schröder will advise on tax issues relating to capital markets products and company succession planning.