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  • 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)
  • The Hungarian government will have to increase taxes in 2005 to meet the EU-approved convergence programme for entry into the euro, which requires cuts in the country's 5.4% budget deficit. The 2005 budget tax proposals, therefore, include increases to financial institutions' profit tax rate and to the withholding tax on capital gains.
  • In the Hallminster decision (Case 250328), rendered on February 25 2004, the French Supreme Administrative Court had to decide whether a capital gain realized by a company resident in the UK from the sale of a majority shareholding in a civil company running a vineyard in France was subject to tax in France
  • John Fairley, a former senior international tax partner at Ernst & Young, has joined Baker & McKenzie, the US global law firm, as a senior consultant in London
  • Michael Cullen, New Zealand's finance minister, has promised that tax advice from accountants will be legally privileged as it is from lawyers. The big four accounting firms, which all provide international and corporate tax advice, welcomed the move.
  • The Tax Executives Institute (TEI) will give its distinguished service award to Pam Olson, former assistant secretary of the US Treasury for tax policy. Olson, who returned to private practice at the law firm Skadden, Arps, Slate, Meagher & Flom, will receive the award at the TEI's annual conference in October.
  • French finance minister Nicolas Sarkozy vowed on September 16 2004 to continue his efforts to penalize EU member states that have corporate income tax rates below the EU average. Sarkozy plans to write to all 24 of his fellow EU finance ministers to insist that EU countries rich enough to reduce taxes should not expect structural funds from the EU.
  • In recent years, eliminating abusive tax schemes has risen to the top of the agenda for revenue authorities, both locally and internationally
  • A recent Indian authority advance ruling (AAR) examined whether a liaison office (LO) of a foreign company constituted a permanent establishment (PE) in India
  • Sixth VAT Directive – Article 15(6), (7) and (9) – Exemption of exports outside the Community – Meaning of ‘aircraft used by airlines operating chiefly on international routes’ – Exemption for fuelling and provisioning of domestic flights.