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  • On March 11 2004 the Internal Revenue Service (IRS) in the US delivered its reaction to the Senate Finance Committee's inquiry into advance pricing agreements. The committee asked the IRS on December 22 2003 to produce findings on whether multinationals were unfairly avoiding tax through such agreements as well as copies of all agreements over the past 10 years and the recommended transfer pricing methods.
  • The Ministry of Finance has released a draft tax reform package that will reduce the tax burden by €3 billion ($3.7 billion). The package, if passed, which will likely take effect from January 1 2005, cuts corporate income tax from 34% to 25%, revamps treatment of group losses, makes interest incurred for the participation acquisitions deductible but removes capital gains neutrality for new assets in some cases.
  • Just 11 days after it came into effect, the 0.15% tax on banking transactions in Peru is having a marked negative effect on business in the country according to the Lima Chamber of Commerce. On March 4 2004 the chamber claimed that Peru's average foreign exchange volume has dropped by 43% since the introduction of the tax. Many companies complain they are forced to pay the tax over and over again through their supply chain.
  • In the pre-Budget speech in December 2003, UK real estate investment trusts (REITs) moved one step closer with an endorsement from the Chancellor, Gordon Brown, who confirmed that a consultation document on REITs would be issued with the Budget in March this year
  • Senator Helen Coonan, Australia’s minister for revenue and assistant treasurer, announced on March 1 2004 that the government will introduce legislation to change the interest withholding tax (IWT) exemptions for payments relating to offshore borrowing
  • European Union finance ministers in Brussels increased pressure on Switzerland to sign an accord on offshore tax fraud at the monthly Ecofin council meeting on March 9 2004
  • The country's parliamentary finance and economics committee has approved a Bill to reduce the top corporate tax rate from 55% to 25%. The Bill, part of an overall economic stimulus package focussed on encouraging foreign investment will soon go before parliament for approval.
  • On March 9 2004 the Federal Constitutional Court declared that capital gains taxes levied in 1997 and 1998 were unconstitutional due to bank secrecy laws. The capital gains legislation has since been amended but taxpayers can seek repayment of such taxes paid in 1997 and 1998.
  • Toyota Australia is facing a claim by the Australian Taxation Office (ATO) that it shifted profits offshore, avoiding about $300 million to $700 million in taxes between 1994 and 1999. Toyota's spokesperson, quoted by the Australian Broadcasting Corporation, has rejected the claim and says it is working with the ATO to finalize the review.
  • On March 8 2004 the US and the Netherlands signed a protocol to the 1992 tax treaty that, in some circumstances, eliminates withholding taxes on dividends paid to parents within the two countries. The protocol also updates the limitation of benefits arrangements and includes new rules on partnership investments.