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  • 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.
  • Freshfields, Bruckhaus, Deringer has advised Degussa on its $250 million sale of Polymer Latex. Tax advice was provided by Hans-Joerg Ziegenhain of Freshfields, Bruckhaus, Deringer in Munich. Polymer Latex was bought by Soros Private Equity Partners, which was advised by Eugen Bogenschuetz of Allen & Overy in Frankfurt.
  • International law firm Allen & Overy is advising Six Continents on its £4.8 billion ($7.8 billion) plan to split the company into two holding companies; Mitchells & Butlers and InterContinental Hotels Group. David Lewis and Anne Powell are providing tax advice on the demerger from Allen & Overy's London office. The two holding companies are receiving tax advice from Charles Hellier and Stephen Pevsner of Linklaters, also in London.
  • Despite pressure from audit firms, the European Commission is refusing to propose legislation to limit auditor liability
  • Singapore companies with overseas branches and subsidiaries were given a boost last month when the government announced a Budget which, according to the country’s Finance Minister, Lee Hsien Loong, will exempt 90% of Singaporean companies’ overseas income from tax
  • Martin Lynchehan, Elizabeth Conway and Richard Hawkins of Linklaters in London have advised Royal Bank of Scotland on the tax issues involved in the bank's acquisition of 80% of Southern Water. Nick Cronkshaw of Simmons & Simmons in London advised Southern Water on tax matters. The deal was valued at £4.8 billion ($7.5 billion).
  • Catherine Brayley, a partner and the leader of Canadian firm Gowlings' tax national practice group is leaving the firm for rival firm Davis & Company. Davis & Company is one of the biggest law firms in Western Canada and has a separate consulting arm dealing solely with alternative dispute resolution services. Brayley provides advice on the tax issues on mergers, acquisitions, employment compensation arrangements and personal tax issues.
  • European economics and finance ministers failed to reach agreement on the tax package at a meeting last week after Italy continued to block the package’s progress
  • Australian law firm Mallesons Stephen Jaques has started a tax practice in London. Senior associate Tim Sherman moved to the London office from Melbourne earlier this year. Sherman focuses on corporate tax including the taxation aspects of investment and trade between Australia and the UK. He also has experience of the taxation of international employee share ownership plans.
  • Members of the European Commission last week agreed on a proposed Directive on energy taxation after Austria dropped its reservations