Search results for

Contacts Emails Richard J Wuermli richard.wuermli@taxexpert.ch Christoph Busin christoph.busin@taxexpert.ch Bruno Beer bruno.beer@taxexpert.ch Daniela Fischer daniela.fischer@taxexpert.ch Katharina B Padrutt katharina.padrutt@taxexpert.ch Matthias Erik Vock matthias.vock@taxexpert.ch Löwenstrasse 11

Republican Bill Thomas introduces the corporate accountability bill, new regulations from the IRS and a US-UK protocol amends the proposed income tax treaty. By David Benson, Peg O’Connor and Lilo Hester, Ernst & Young, Washington DC

In a decision that may mean less than meets the eye, Germany's highest tax court has handed down its first decision on a provision added to the tax code in 1994 to combat treaty shopping. The decision is Federal Tax Court judgment of 20 March 2002 (I R 38/00 – published only electronically so far). The treaty shopping statute read as follows in 1994, the year at issue:

A clear avenue for more focused corporate structuring, greater flexibility in the reorganization of assets, unlocking of hidden shareholder value in separated businesses and the removal of the tax burden to shareholders can be expected as a result of the new demerger relief legislation recently introduced into Parliament. Although not yet law, the measures are expected to apply to demergers that take place on or after July 1 2002.

UK professional services firm RSM Robson Rhodes has hired five partners. All five join the London office from the defunct Andersen and form a compensation tax consulting division within the corporate tax practice.

Michael Molenaars: clients will welcome this strenghthening of the practice The Dutch and Belgian law firm Stibbe is launching a tax practice in the UK. Michael Molenaars, a partner in the New York tax group of Stibbe is moving to London in September 2002 to lead the group.

Further changes to the tax code were signed into law by President Putin on July 24 2002. The amended law has eliminated the ambiguity as to whether an in-kind share capital contribution made at a value exceeding the net book value of the contributed property (according to the accounts or tax books of the contributing party) gives rise to an immediate taxable gain for the contributing party. The law has put an end to this uncertainty.

White & Case has expanded its New York tax team by luring a partner from King & Spalding. Raymond Simon joined the firm on August 1 as a tax partner focusing on the leasing practice. His work will focus on servicing domestic and cross-border leverage leasing with existing White & Case Partner Jim Hayden. Simon had been approached several times over the last few years by White & Case but finally left King & Spalding on July 31. He describes one of the reasons for his move as being attracted to the broader range of work he'll be able to undertake at White & Case. ?I worked with Jim back in 1988 so have known them for almost 14 years,? he says. ?They're a nice group of people and I wasn't looking to leave but we started talking and suddenly it made sense. I will be able to do not just equity work but also to further develop the lessee practice.

Stefan Widmer: Andersen's culture is aggressive and competitive KPMG has lured a former tax partner away from the agreed Ernst & Young merger in Switzerland. Stefan Widmer joined the firm on August 5 as an international tax partner. He will be spending six months at KPMG's San Francisco office from October this year in order to strengthen the ties between the Swiss and US practices and increase the firm's Swiss presence there.

On August 5 2002, the UK government published a consultation document considering further reform of the UK corporation tax regime. Specifically, the following three (interrelated) possibilities are considered.