Search results for

Japan's influential government tax commission set out wide-ranging plans for the future of Japan's tax policy on June 17 2003. The proposals include suggestions related to individual income tax, the taxation of pension benefits, consumption tax, corporation tax and excise duties. Prime Minister Junichiro Koizumi is under intense pressure to raise taxes to fill the hole in government finances, but there is fear that this could stifle the already sickly economy. The government cut corporate taxes earlier this year in an effort to stimulate activity.

The Chicago-based law firm Altheimer & Gray announced plans on June 30 2003 to dissolve the partnership. A statement from the firm blamed the slowdown in M&A activity for the move. The tax practice at the firm is lead by Susan Daley.

On May 12 2003 a major reform to the Maquila Decree was published in the Mexican Official Gazette.

A number of countries have stepped up efforts to expand their double-taxation agreement networks. The Russian government has agreed double-taxation treaties with Syria, New Zealand and Iceland. The treaties were ratified by the Duma on June 4. Belgium and France are working to update a double-tax treaty that dates back to 1964. The UK government expects to complete work on agreements with Australia, Chile, Croatia, France and Slovenia before the end of March 2004.

In May 2003 the Inland Revenue Department (IRD) for the first time prosecuted a tax evader by using the common law offence of cheating public revenue instead of the usual statutory power conferred under section 82 of Inland Revenue Ordinance (IRO). Under the IRO, the maximum penalty for tax evasion is three-year imprisonment and a maximum fine of three times the tax undercharged as a result of the tax evasion. However, under the common law offence of cheating the public revenue, the heaviest penalty is seven-year imprisonment and a fine without upper limit (under section 101I of the Criminal Procedure Ordinance).

PricewaterhouseCoopers' Japanese practice has lost Makoto Nomoto to KPMG. He will be responsible for providing corporate tax services to Japanese clients in Northeast Asia from the New York office.

The Korean Ministry of Finance and Economy (MOFE) released a draft of a Presidential Decree regarding the extension of temporary investment tax credit. At present the legislation allows companies to credit 10% of particular types of investment from its tax liability. MOFE plans to extend the credit to the end of the year.

Dick Kocak, former chief of the excise tax branch at the IRS, has moved to KPMG to lead their excise tax practice in Washington. Ruth Hoffman, a former senior technician in the same office at the IRS, followed Kocak to KPMG. Between them they were responsible for the IRS's published guidance on excise taxes and have nearly 45 years of IRS experience.

Lawrence Kemm joined McDermott, Will & Emery in the UK from Baker & McKenzie on June 16 2003. Kemm is confident that McDermott, Will & Emery's relationship with other firms around the world will allow him to continue providing high quality tax advice internationally.

Michael Weaver and Travis Taylor, formerly in PricewaterhouseCoopers's tax valuations department, have set up Gravitas Partners in the UK with two former colleagues from the big-four firm. The practice hopes to provide a more personal service to its clients (some of whom have followed Taylor and Weaver from PricewaterhouseCoopers), while also providing access to senior tax practitioners with experience in a big-four firm.