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  • Accounting and business advisory firm PKF has hired a director of taxation after raiding KPMG
  • On October 10 2001 the Italian Parliament approved a new law including, among other things, a number of new tax provisions in respect of tax incentives and inheritance and gift tax. Final approvals were expected at the time of publication, but substantial amendments were still possible.
  • Australia’s wide-ranging programme of consultation on tax reform seems still to be captive to the desire to protect the country’s revenue base. By Michael Collett and Jason Wrigley, Australian Tax Desk, Ernst & Young - International Tax Services, UK and Europe
  • Tax advisers and industry are reacting to Belgian Prime Minister Guy Verhorstadt's tax cutting budget with uncertainty. The budget, announced early October, included a cut in corporate tax from 40.17% to 33.99% from January 1 2002. A second reduction in the tax rate, down to 30%, is being considered over a two-year period.
  • On August 31 2001, the Netherlands state secretary of finance published a legislative proposal that contains measures against dividend stripping (see International Tax Review, June 2001, discussing new measures against dividend stripping.) The proposed amendments have retroactive effect as of April 27 2001.
  • With China entering the WTO, the government is being forced to fully open the domestic market. Restructuring to take advantage of such opportunities will have major tax consequences. By Glenn Desouza, PricewaterhouseCoopers, Shanghai
  • The epic trade war between the US and the EU continues, with the US refusing to accept a WTO ruling against its Foreign Sales Corporation (FSC) legislation. It is appealing against the WTO's August 20 decision in favour of the EU's claims that the act and its replacement, the Extraterritorial Income Exclusion Act (ETI) of November 2000, constitute an export subsidy that allows US exporters to save billions of dollars a year.
  • The Spanish government has recently submitted the draft budget laws for 2002 to parliament. As in prior years, many relevant tax measures are included although this year they appear to be even more significant. Some of the proposed tax measures are as follows:
  • Legislative proposal Tax Plan 2002 II sets out key changes to the Netherlands participation exemption regime and its rules on hybrid debt, among others. By Eelco van der Stok, Freshfields Bruckhaus Deringer, London
  • Intra-group lending raises transfer pricing and thin capitalization concerns. Whatever form the challenge takes, the prudent approach is multi-pronged. By Thessa Mac, CMS Cameron McKenna, London