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  • In the midst of considerable debate on the potential tax leakage from income fund structures, the Canadian government has introduced several changes affecting pension funds and non-resident investors in Canadian income funds
  • Sixth VAT Directive – Concept of taxable person – Place where services are supplied – Exemption for management of special investment funds – SICAV (open-ended investment companies).
  • The US Senate voted overwhelmingly last Tuesday to repeal tax-break legislation, which could cost the US up to $4 billion in tariff sanctions on its exports
  • On Friday May 14 2004 the European Commission rejected Franco-German plans to push for harmonized corporate tax rates across the EU's 25 members. The plan proposed a uniform system for calculating a company's tax base and then establishing a band of maximum and minimum corporate tax rates. Germany and France fear that low corporate tax rates, particularly in the 10 new EU states, will lure investment from their own countries. Changes to EU tax policies must be agreed by all member states.
  • On April 2 2004 the authorities issued Provisional Measure 179 (PM 179), which modifies the legislation related to the temporary contribution on financial activities (CPMF)
  • On April 9 2004 the Argentine Ministry of Economy announced several changes to the tax system mainly aimed at promoting investment in Argentina
  • The South African Revenue Service has released new rules limiting the use of the tax exemption on offshore profits of multinational companies
  • Gordon Brown, the UK chancellor of the exchequer, on May 13 2004 announced the appointment of David Varney as head of the country's new tax authority, which will be created when Customs & Excise and the Inland Revenue merge next year. Varney is the outgoing chairman of the telecoms company MMO2 and will take up his post on September 1 2004.
  • Switzerland has reached an agreement with the EU that breaks the deadlock over the introduction of the Savings Tax Directive scheduled to enter into force on January 1 2005. Switzerland, which had been concerned that the Directive would compromise its banking secrecy, will tax interest on some financial instruments held locally by EU citizens, with 75% of the proceeds going to the account holders' domestic tax authorities and the remainder to the Swiss to cover running costs.
  • The Israeli government on April 25 2004 approved a Ministry of Finance plan to cut the country’s corporate tax rate from 36% to 30% over four years and introduce investment incentives for both foreign and domestic companies