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  • The US Treasury and IRS released the tax priority guidance plan for the next twelve months yesterday in Washington, DC
  • Germany's Ministry of Finance released on July 15 2004 the final version of an administrative decree providing tax authorities' interpretation of the thin capitalization rules that entered into effect for fiscal years starting on or after January 1 2004. The amended rules require a uniform debt-to-equity ratio of 1.5-to-1 and apply to both resident and non-resident companies.
  • In February 2004, the German tax authorities issued a directive addressing the landmark transfer pricing decision rendered by the Federal Tax Court (FTC) on October 17 2001 (see International Tax Review, February 2002, p22)
  • President Inácio Lula da Silva has withdrawn a proposal to increase payroll tax to finance pensions after a storm of protest from business leaders
  • The Interest and Royalty Directive of June 3 2003 was amended at the end of April 2004 in the context of the EU accession of 10 new member states
  • Donald Korb, the new chief counsel of the Internal Revenue Service (IRS) in Washington, DC, told International Tax Review’s Sed Crest what taxpayers need to do to protect themselves and what they should expect from their advisers
  • A government-appointed taskforce on tax reform has recommended that India should cut corporate tax and replace the variety of excise and services taxes that the central and state governments levy with a value-added tax (VAT) on goods and services.
  • The UK Inland Revenue is investigating the transfer pricing practices of two of Japan's biggest motor companies: Honda Motor Europe and Nissan Motor (GB).
  • The Finance Bill passing through Parliament now proposes some significant changes to the offshore funds regime (Income Tax Act 1988 part XVII chapter V), which should enable more offshore funds to be certified as having distributor status
  • The European Commission has released a paper calling for a ground-breaking scheme to create common rules for calculating the corporate tax base within a limited number of EU states, including France and Germany. Pressure is building on national governments to make changes to their tax laws in order to comply with EU laws or even to harmonize direct tax systems within the EU.