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  • The European Commission (EC) rejected Gibraltar's proposals for company tax reform on March 30 2004. The proposals would have replaced Gibraltar's 35% corporate tax rate with a payroll tax and a business property occupation tax that together could not exceed 15 % of company profits. But the EC ruled that the proposals would contravene EU state aid rules. The Gibraltarian government has pledged to challenge the decision.
  • The US-Sri Lanka tax treaty approved by the US Senate on March 25 2004 contains provisions to address tax barriers to trade and investment between the two countries. It also contains administrative provisions, including rules for resolving disputes and for exchanging tax information.
  • The German tax authorities released guidelines on March 29 2004 clearing up long-standing confusion over the classification of limited liability companies (LLCs) for tax purposes as either a partnership or a corporation
  • US House Ways and Means Committee chairman, Bill Thomas, has blamed lobbying from Microsoft, Boeing and Caterpillar for delaying progress on his Bill designed to replace the export tax credits legislation averting $4 billion in WTO sanctions
  • Overseas investment in New Zealand’s burgeoning biotech sector could be boosted by a tax change aimed at helping the country compete with Australia for venture capital
  • On October 13 2003 President Fox issued a decree (the New Decree) that reformed the previous Decree for the Promotion and Operation of the Maquiladora Export Industry (the Decree) issued in 1998
  • The tax shelter opinion standards that the US Treasury and the IRS first proposed at the end of 2003 in proposed changes to Circular 230 will be finalized soon, according to a Treasury official. There have been concerns that ordinary tax planning would trigger the rules. But Eric Solomon, Treasury deputy assistant secretary (regulatory affairs) said the comments on the proposals submitted by tax advisers would be incorporated in the new regulations.
  • A survey by KPMG has found that global corporate tax rates continued to fall in most parts of the world. The 2004 survey found that the average rate for the members of the thirty OECD nations (Organisation for Economic Cooperation and Development) fell from 30.68% in 2003 to 29.96% in 2004.
  • The Norwegian government unveiled tax reform proposals on March 26 2004. The reforms would make inter-company dividends and inter-company capital gains on shares tax-free, and corresponding losses would be non-deductible. To prevent a tax-motivated realization of losses, that part of the reform would come into force from the day the proposal was presented. The rest of the reform would be phased in over the years 2005 to 2007.
  • Vodafone is resisting attempts by UK Customs and Excise to recover millions in value-added tax that the tax authority says is payable on sales of pre-paid phone cards. The dispute is the first concrete evidence of plans to crack down on tax avoidance that the chancellor of the exchequer Gordon Brown unveiled in his March 17 2004 Budget speech.