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Over-complexity and over-simplicity are just two of the evils marring the sophistication of tax regimes in many Asian jurisdictions. The following article looks at how variety spices up the business of tax advice in Asia and provides the results of International Tax Review's survey into Asia's best advisers. By Sharon Cunningham

DATE TYPE OF DEAL VALUE ACQUIRER TARGET HOLDER ADVISERS TO TARGET ADVISERS TO ACQUIRER ADVISERS TO HOLDER 23/3/01 acquisition $130 million Micron Electronics (US) Interland (US) N/A Kilpatrick Stockton, Atlanta, Lynn Fowler Fenwick & West, Palo Alto, Jim Garahan, Adam Halpern N/A 27/3/01 acquisition $10.5 billion Johnson & Johnson (US) ALZA Corporation (US) N/A Heller Ehrman White & McAuliffe, San Francisco, Robert Alexander, Keith Betzina,Teresa Maloney; ALZA, Peter Staple, Susan Fairbrook Cravath Swaine & Moore, New York, Lewis Steinberg, Gregory Schmolka N/A 27/3/01 acquisition $500 million Marathon Oil Company (US) Pennaco Energy Inc (US) N/A Vinson & Elkins, Texas, Barry Miller, Judy Blissard, John Jeffers Baker Botts, Texas, Benjamin Wells, Michael Bresson, Chuck Campbell; Marathon, Rich Molina N/A 22/3/01 acquisition $550 million Avnet Inc (US) Kent Electronics Corporation (US) N/A Locke, Liddell & Sapp, Texas, Gene Lewis Carter Ledyard & Milburn, New York, Jerome Cohen, Howard Barnet N/A

Effective April 1 2001, the Netherlands Ministry of Finance issued various decisions concerning the Dutch ruling policy and introduced transfer pricing regulations. Based on these decisions, the Dutch tax authorities will no longer sign off standard rulings, but instead will conclude advanced pricing agreements (APAs) and advanced tax rulings (ATRs). This new policy is a result of the international developments within the EU and the OECD.

HONG KONG SAR

Significant exemptions from withholding tax were offered to Singapore’s software importers in the recent budget speech. While some legal issues remain unresolved, increased certainty should boost this area. By Kenny Foo, Baker & McKenzie, Singapore

The European Commission has announced that it is to improve the tax regime for the cross-border provision of occupational pensions. The plans were announced at the Stockholm European Council, March 23-24, and form part of the Commission's strategy to open up the pan-European labour market by 2005, announced 28 February. They complement the Commission's draft directive of October 2000, which proposed allowing cross-border pension plans but did not cover tax issues. This directive is due to come into effect at the end of 2003.

The Chilean government has announced a package of broad tax reforms. On April 19 in Santiago, Finance Minister Nicholas Eyzaguirre unveiled 15 reforms aimed at boosting foreign investment in the country, encouraging savings and strengthening the country's ailing stock market. According to Eyzaguirre, the proposals will be submitted to Congress by May 21 of this year, although they could take several months to be passed. Included in the reform package is the removal of the 15% capital gains tax paid on the disposal of shares. The new tax rate will affect local and foreign investors but will only apply to frequently traded issues. It will be effective on stocks bought and sold in the stock market from April 19 and aims to increase liquidity in the market. There are also plans to exempt the stock of new companies with high predicted growth from capital gains tax for three years.

Mexico's president looks set for a battle as he takes his controversial tax reform package to Congress. On April 3, Vicente Fox announced a series of proposals aiming to increase revenue without raising taxes. The most controversial of the changes is the elimination of the 0% rate of value-added tax (VAT) on food and medicines. This will leave a uniform VAT rate of 15%.

Following annual consultations with businesses and representative organizations, the UK Inland Revenue has announced details of the UK's treaty priorities for 2001/2002. In an official statement, UK Paymaster General Dawn Primarolo stated that while the country's top priority is to finish the double taxation treaty with the US, there are also plans for completing work on treaties with countries including France, Jordan and South Africa. She also stated her intention to hold talks about new or updated tax treaties with Croatia, Iran, Saudi Arabia and Slovenia.

4/F, Syciplaw-All Asia Capital Center