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Aforeign corporation that is engaged in a US trade or business is subject to regular US income tax on net income that is effectively connected with the trade or business. However, in order to claim deductions and credits otherwise available for calculating its US income tax liability, the foreign corporation must file a "timely and accurate" US income tax return. Failure to do so generally results in permanent disallowance of otherwise available deductions and credits. The IRS has recently issued regulations that significantly relax the standards for accepting late-filed tax returns.

On January 1 2003 Law 51/2002 entered into force (the Law) amending Spanish municipal taxation.

The Hong Kong Inland Revenue Department (IRD) issues employer's returns to companies carrying on business in Hong Kong on April 1 each year. Employers are required to submit details of remuneration paid to employees in the returns. The IRD uses employer's returns to scrutinize whether employees report their income correctly by matching the income disclosed in the individual's tax return with the payment of remuneration reported in the employer's return by his or her employer.

In votes taken on April 11 2003, the German Bundestag (parliament) and Bundesrat (federal council) passed a compromise version of the Tax Preference Reduction Act (Steuervergünstigungsabbaugesetz).

In February 2003 the European Commission published a consultation paper that discusses the possibility of using the introduction of international accounting standards (IAS) in 2005 to also introduce a consolidated tax base for companies with EU-wide activities.

The Ministry of Foreign Trade and Economic Cooperation recently issued amendments to the rules on foreign-invested holding companies or investment-type companies.

Canadian tax considerations have recently given financial institutions (such as banks, credit unions, insurance companies and investment dealers) a reason to exercise dissent rights in respect of a merger or acquisition or corporate reorganization, even where the financial institution does not object, from a commercial perspective, to the transaction. Exercising dissent rights may in some circumstances provide an opportunity for the financial institution to exit its investment in a particular corporation on a tax-free basis.

President Luiz Inacio Lula da Silva emerged from a meeting with Brazil's state governors on April 16 with a common agenda for extensive tax reform. Moves toward the harmonization of the value-added tax on sales and services (ICMS) could reduce the need for regional tax advice in Brazil.

On March 26 the Israeli cabinet approved Finance Minister Benjamin Netanyahu's Budget, which aims to reduce the Budget deficit by cancelling geographically-based tax breaks (saving NIS1 billion ($215 million)), levying an employers tax on foreign workers and cutting the defence and other government procurement budgets.

A bi-partisan group of US lawmakers is seeking to permanently ban taxes on internet access. Democrats and Republicans have joined forces to highlight growing support for permanently extending the existing Cox-Wyden moratorium on new internet access taxes and any discriminatory taxes that unfairly target the internet. The lawmakers want to extend the existing ban before it expires in November this year.