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  • Canadian update: New reasonable-expectation-of-profit rule
    Proposed amendments to the Income Tax Act (Canada), released on October 31 2003, will have a significant impact on planning and structuring for the acquisition of businesses and properties in Canada
    February 15 2004
  • China plans to increase foreign corporate income tax
    Liao Luming, the director of the Chinese finance ministry’s general office has outlined a new unified corporate tax law, which aims to treat domestic and foreign corporations on equal footing, effectively raising corporate income tax for foreign-invested enterprises
    February 15 2004
  • Hong Kong plans new sales tax
    The government of Hong Kong on February 10 2004 announced an intention to introduce a modest sales tax when the economy improves. Frederick Ma, secretary for financial services and the treasury and finance secretary Henry Tang said more details will be provided in the Budget statement in March.
    February 15 2004
  • Chevron Texaco sues US for $118 million
    The oil company Chevron Texaco filed a petition in a North California court demanding over $118 million in tax refunds from the US government. The company says it is owed tax rebates for 1988, 1990, 1991 and 1992.
    February 15 2004
  • Brazilian update: Social security financing tax updated
    On October 31 2003 the Brazilian government issued Provisional Measure 135/2003, which, among other things, altered the rules for the application of the social security financing (COFINS) tax
    February 15 2004
  • Australian update: Tax consolidation – the monster clean up
    The government delivered an early Christmas present for business when it delivered on some of their concerns by renovating the new tax consolidation regime to tailor it more closely to their needs
    February 15 2004
  • Changes to partnership losses hurt UK films
    The UK Inland Revenue launched a surprise attack on relief for trading losses through partnerships last week
    February 15 2004
  • Korea softens on transfer pricing audits
    The National Tax Service of Korea (NTS) is set to formally announce taxation policies designed to ease tax audits on foreign companies doing business in the country
    February 15 2004
  • US tax shelter amnesty yields $170 million
    The IRS announced the latest results of its offshore voluntary compliance initiative (OVCI) on February 10 2003. The OVCI is tax amnesty that allows taxpayers involved in illegal tax shelters to pay previously undeclared tax liabilities to avoid criminal prosecution and some penalties. The scheme, which ran from January 14 2003 to April 15 2003, produced more than $170 million in taxes, interest and penalties.
    February 15 2004
  • Germany’s effective tax rates among the highest in Europe
    A report by the Federal Finance Office, an arm of the German Finance Ministry, revealed that the combined level of corporate taxes paid by German firms at the federal and regional level is around 40%. The figure arose despite Chancellor Gerhard Schroeder's efforts to cut the nation's tax burden.
    February 15 2004
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