Search results for

HM Customs & Excise (Customs) has put forward proposals to modify the criteria for value-added tax (VAT) grouping membership, to conform to the accounting consolidation rules rather than existing company law grouping rules. This is likely to affect many joint ventures (JVs), where VAT grouping is currently available but may be denied under the new rules. Customs considers that the current rules are too far removed from economic reality, and believes this situation is being abused. The changes, which are planned to take effect from mid-2004 without any transitional relief are subject to consultation. Corresponding changes are planned for limited partnerships.

On January 1 2004 various reforms to the Mexican tax legislation were effective. The most significant changes approved by Congress were made to the Federal Fiscal Code (FFC), which was substantially modified. Almost all of the proposed substantive modifications to specific taxes were rejected so such taxes will remain in essence unchanged for 2004.

The government of Korea unveiled plans to use tax incentives to encourage project finance activity on January 14 2004. The Korean Ministry of Finance announced the benefits after the National Assembly passed a revision Bill on the nation's Corporate Income Tax Law (CITL).

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.