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  • The government of Argentina announced on May 27 2004 that it will impose a 20% tax on natural gas exports as part of President Nestor Kirchner's efforts to ease the country's energy crisis. The tax will surpass what most industry analysts expected to be a 15% tax after an energy plan unveiled on May 11 2004 indicated the tax was imminent.
  • The special Canary Islands Special Zone (ZEC) tax regime has been in force since 2000 after authorization by the EU authorities
  • Serbian finance minister Mladjan Dinkic on May 25 2004 announced plans to cut the corporate tax from 14% to 10%. With the exception of Estonia, which has a zero rate of corporate tax in certain cases, it would be the lowest corporate tax rate in Europe. The news will not be welcomed by German chancellor Gerhard Schroeder, who has expressed concerns about low corporate tax rates, which could lure investment away from higher-tax states.
  • Following the example of other European countries, Italy has adopted a special tax regime for the income deriving from the use of certain vessels, having a net tonnage higher than 100 tons, under the form of so-called tonnage based corporation tax (the Tonnage Regime), pursuant to the new articles from 155 to 161 of the Italian Tax Code (ITC), as amended
  • Last week the UK court of appeal overturned the High Court decision that would have required companies involved in the group litigation order case against the UK Inland Revenue to pursue their case individually. The group litigation order claim is based on the principles in the Marks & Spencer case, which is expected go before the European Court of Justice next year at the earliest.
  • The Finnish government unveiled a corporate tax reform package on May 19 2004 that will reduce the corporate tax rate from 29% to 26% and abolish the imputation credit system
  • The Internal Revenue Service (IRS) has released its annual report on the US advance pricing agreement (APA) programme covering calendar year 2003 (See Announcement 2004-36)
  • A Russian court on May 26 2004 upheld a Tax Ministry demand for $3.5 billion in back taxes from Yukos for the 2000 tax year. The oil company vowed to appeal against the ruling.
  • The Chinese Ministry of Finance and State Administration of Taxation have issued a notice outlining a deed tax exemption for mergers and reorganizations
  • Dominated by the big four, professional services firms won more than half of the outsourced, tax-services dollar in Europe according to International Tax Review’s survey, leaving law firms with a 47% share