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  • Trade relations between the US and the EU could suffer a knock-back after the WTO overruled the US appeal in its longstanding dispute with the EU over its Foreign Sales Corporation (FSC) legislation.
  • The Act for the Further Development of Business Tax Law (Gesetz zur Fortentwicklung des Unter-nehmens-steuer-rechts) was enacted into German law shortly before Christmas 2001. A number of concessions were made to obtain the necessary votes in the Federal Council. The government had a majority only in the Federal Parliament.
  • German hedge fund initiators usually still choose indirect investment structures. However, a number of open questions still remain about hedge fund vehicles created for the German market. By Dr Florian Schultz, Linklaters Oppenhoff & Rädler, Frankfurt
  • China has a stated policy to encourage investment in the hi-tech industries and, as a result, a variety of special concessions are on offer to foreign investors. By Yunfang Wendy Guo, KPMG, New York
  • Effective October 1 2001, the Japanese Commercial Code was amended to allow companies to acquire treasury stock, regardless of the purpose of the acquisition, and to hold such shares without being subject to any requirement for immediate redemption or disposition. Previously, companies were prohibited from acquiring and holding treasury stock, apart from in exceptional circumstances such as, for example, share retirement.
  • Argentina's tax system is being looked into following the country's currency devaluation and economic problems.
  • Three years after it was announced, the eagerly awaited corporate tax reform has been enacted in Luxembourg. The reform package was approved on December 21 2001 and came into effect on January 1. Included in the package is a reduction of the overall corporate tax rate on income from 37.45% to 30.38%.
  • Members of the international community are fighting for their share of the e-commerce tax pie. A specialist committee in India has concluded that there is a need to ensure an equitable sharing of revenues between residence and source countries. By Vispi Patel, Deloitte Haskins & Sells, Mumbai
  • Foreign investors in venture capital funds investing in Israeli hi-tech companies are to benefit from an exemption from Israeli tax. But until detailed qualifying conditions are issued, a degree of uncertainty remains. By Dr Avi Alter and Zvi Altman, tax law offices of Dr Avi Alter & Co, Tel Aviv
  • DATE TYPE OF DEAL VALUE TARGET ACQUIRER / ISSUER HOLDER / UNDERWRITER ADVISERS TO TARGET ADVISERS TO ACQUIRER / ISSUER ADVISERS TO HOLDER / UNDERWRITER 15/11/01 acquisition $825 million IT disaster recovery