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  • The government of the Kingdom of Saudi Arabia has approved a new income tax bill which cuts the corporate tax rate on foreign investors from 30% to 20%. The move is designed to generate badly-need investment into the country and follows a similar rate cut from 45% to 30% at the beginning of 2000.
  • Tax leasing fiddles are costing the US almost $34 billion over 10 years, according to Pamela Olson, assistant treasury secretary for tax policy. Measures to target abusive tax transactions were included in the Treasury's proposed fiscal year 2005 budget plan, which was published on January 13 2004.
  • One of the first measures announced by the new administration elected in 2003 was a tax reform package mainly intended to combat tax evasion. The government made known its intention to reinforce the punitive legislation on tax crimes and submitted amendments to income tax.
  • The government has proposed generational changes to Australia's tax regime for both Australian resident and foreign multinationals. Alf Capito of Ernst & Young points out some of the benefits of the proposals
  • Mark Kingstone and Katie Price of Linklaters explain the precautions taxpayers need to take over privilege after the Three Rivers judgment
  • Giuliana Polacco of Baker & McKenzie explains when the new rules will apply and how to escape them
  • The OECD warned the UK government of the need for further fiscal action to avoid diminishing the credibility of its fiscal framework. In its annual review of the UK economy released on January 20 2004, the OECD raised concerns that the country could be in danger of breaching the 3% of GDP budget deficit limit (set out in the EU's Stability and Growth Pact) in 2005.
  • Australia finalized double taxation treaties with the UK and Russia on December 17 2003. The Australia-UK treaty will go into effect on 1 July. The Australia-Russia treaty became effective on 1 January 2004.
  • The US IRS appointed Nancy Jardini as head of the agency's law enforcement division on January 20 2004. As chief of criminal investigation, Jardini will direct a nationwide staff of about 4,500 employees. She replaces David Palmer, who had the position from November 2002.
  • French law firm CMS Bureau Francis Lefebvre has hired four tax specialists to expand its presence in Africa. Lamiae Homman-Ludiye, Pierre Marly, Deana d'Almeida and Jacques Isabelle, all former HSD Ernst & Young lawyers, joined the Africa section of CMS's Paris office on January 20 2004.