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  • Eleven tax partners of Ernst & Young in Mexico have left the firm for Baker & McKenzie, the international law firm, decimating the big four firm’s tax practice there
  • The German Ministry of Finance on July 15 2004 released the final version of a decree providing the tax authorities' interpretation of the thin capitalization rules that entered into effect on January 1 2004. The amended rules require a uniform debt-to-equity ratio of 1.5-to-1 and apply to both resident and nonresident companies. Germany changed its thin capitalization rules after the European Court of Justice found them to be in breach of EU law in 2002.
  • An untaxed savings plan that the Belgian government introduced towards the end of 2003, has yielded only about 2% of the targeted amount at the halfway stage. The plan represents the Belgian government's attempts to bring home billions of euros of untaxed savings, but has so far yielded only €17.5 million ($21.7 million).
  • Though the Minister of Finance’s Budget presented in February was described as bland, there was a shock which will affect banks and corporates
  • Tomasz Michalik, a former Ernst & Young partner specializing in value-added tax (VAT) and international tax, has set up a new tax advice firm called Michalik & Partners, taking many others with him
  • Hugo Chavez, the Venezuelan president, has said his government will repeal the business assets tax and reduce the value-added tax (VAT) rate from 16% to 15%. He also said that in August 2004, the government plans to pay 50% of the VAT refunds it owes to the private sector, with the remaining 50% to be paid in September.
  • Caroline Silberztein, head of transfer pricing at the OECD, and Donald Korb, chief counsel of the US Internal Revenue Service, are two of the big names down to speak at International Tax Review’s Global Transfer Pricing Forum 2004 in Berlin
  • The European Court of Justice (ECJ) ruled on July 15 2004 in favour of the taxpayer in two cases that could have broad implications for EU companies’ tax strategies
  • Failure of a member state to fulfil obligations – Directive 77/388/EC – VAT – Article 11(A)(1)(a) – Taxable amount – Subsidy directly linked to the price – Regulation (EC) No 603/95 – Aid granted in the dried fodder sector.
  • Articles 4(c) CS and 67 CS – Commission Decision No 2496/96/ECSC – Export aid for steel undertakings – Observance of a reasonable period – Tax deduction – Duty to state reasons – Selective nature – General measure.