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  • The Venezuelan government has published amendments to its value-added tax (VAT) law. The amendments reduce the regular VAT rate from 16% to 15% and allow taxpayers to set off excess VAT withholdings against any national taxes due. The amended law will enter into effect on September 1 2004.
  • The government of Israel has unified its Income & Land Tax and the Customs & VAT departments. Eitan Rub, head of the newly-formed Israel Tax Authority, used the August 17 2004 launch to outline his commitment to combating organized crime.
  • Vertex, the provider of tax software and management solutions, has hired Chris Walsh, a value-added tax (VAT) specialist, from PricewaterhouseCoopers. Walsh joined Vertex with an extensive background in international indirect tax project management in more than 30 countries. He will be Vertex's new VAT practice leader.
  • Ceteris, the North American transfer pricing boutique, has announced a new alliance with Europe's Transfer Pricing Associates. The move, which creates a network of 25 senior transfer pricing professionals, was announced on August 10 2004.
  • A Latvian with a reputation for euroscepticism will become the commissioner for taxation and customs union when the new EU Commission takes office on November 1 2004.
  • Dundas & Wilson, the Scottish law firm, has expanded its tax practice south of the border with the hire of Jim Hillan from Tite & Lewis in London. Hillan specializes in corporate and real estate tax and has practised at both Clifford Chance and Ernst & Young.
  • Roger Burrows, a former partner at PricewaterhouseCoopers specializing in value-added tax (VAT), joined Grant Thornton in London on August 17 2004. Burrows, who began his career at Customs & Excise, will lead Grant Thornton's 40-strong indirect tax practice as the firm's new national head of VAT.
  • Mukesh Butani: Very welcome trend The Indian Central Board of Direct Taxes (CBDT) released a draft circular on August 9 2004 that refines the definitions over the taxation of business process outsourcing (BPO) by multinational companies. The CBDT will revert to transfer-pricing principles to determine which BPO activities are taxable.
  • The big four firm has lost Richard Snowden who has left to head up Henry Davis York's tax practice. Snowden specializes in banking and financial services. He cited restrictions in the US on accounting firms providing non-audit services to audit clients as one of the reasons for his move.
  • Pursuant to the 2004 tax law amendments, a real estate investment corporation (J-REIT) can hold 100% of the preferred investment certificates issued by a Tokutei Mokuteki Kaisha (TMK). Previously this was not allowed, because such an investment would not meet with one of the requirements for dividends distribution deduction.