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  • The US Senate ratified the tax treaty with Japan on March 9 2004. The Japanese Diet needs to ratify the agreement by April 1 2004, to allow provisions on reduced withholding tax on dividends, interest and royalties to take effect from July 1 2004 rather than next year.
  • The European Court of Justice ruled on March 11 2004 in favour of the taxpayer declaring French residential exit tax due by an individual, Monsieur de Lasteyrie du Saillant, to be in breach of the EC Treaty. The case confirms the court's commitment to the principle of freedom of establishment contained in the treaty.
  • Sixth VAT Directive – Article 25 – Common flat-rate scheme for farmers – Leasing out by a farmer of some of the assets of his farm – Application of the general scheme to the income from the leasing arrangement.
  • Freedom of establishment; Article 52 of the EC Treaty (now, after amendment, Article 43 EC); Tax legislation; Transfer of residence for tax purposes to another Member State; Methods of taxing increased value of securities; exit taxes; tax captures the gain accrued in the former residence state up to the point of emigration;
  • The US Inland Revenue Service (IRS) announced on March 1 2004 that interest rates will rise by one percentage point on April 1 2004. Interest will be set at 5% for overpayments (4% for corporations), 5% for underpayments (7% for large corporate underpayments) and 2.5% for the portion of a corporate overpayment exceeding $10,000.
  • Sibneft has become the latest Russian oil company to face a claim from the tax ministry for back taxes. The $1 billion claim made on March 2 2004 to settle tax liabilities from 2000 to 2001 was followed later last week with an extra $420 million claim. The latest controversy follows a similar move earlier this year to extract back taxes amounting to $3 billion from Yukos.
  • Marc Halsema, formerly a senior manager of Ernst & Young's international tax services group, has joined Edwards & Angell. The firm announced Halsema's appointment to the New York office as an international tax partner on March 1 2004.
  • On 3 March 2004, the Institute of Chartered Accountants in Australia (ICAA) announced the appointment of Ali Noroozi to the role of Tax Counsel. Noroozi has over 10 years experience in Australian and international taxation from positions at Deloitte Touche Tohmatsu and Ernst & Young and within law practices including Minter Ellison and Linklaters.
  • The Russian government intends to create special technological and manufacturing economic zones with tax breaks to attract foreign and domestic industrial investment
  • The formation of the new European corporate structure, the Societas Europaea (SE), will have few tax implications, according to panellists at a tax planning strategies conference in Zurich last week, as most of the impact is already contained in existing EU or member state legislation.