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German tax law contains a general anti-abuse provision in section 42 of the Tax Procedure Act. The section reads as follows: "The tax laws may not be circumvented by abuse of legal structuring possibilities. In case of [such] abuse, the tax claim [of the tax authorities] is the same as that arising under a structure appropriate to the economic transaction."

The Finnish Act on Income Taxation (1535/1992) was amended by the Act on Amending the Act on Income Taxation (1165/2000), that entered into force on January 1 2001. The central provision to be amended was the definition of foreign earned income (ulkomaantyötulo). Foreign earned income was previously defined as income received by a person otherwise generally liable to pay tax in Finland from working abroad, provided that the stay of this employee abroad is directly due to such work and the stay abroad lasts for at least six months uninterrupted (the so-called 'six months' rule'). According to the new provision, income received as an employee stock option benefit or as a benefit due to the right to subscribe for shares in a corporation at a price lower than current value (employee share issue) is no longer considered as foreign earned income unless:

India’s recent budget represents a balancing act between addressing fiscal deficit and encouraging investment, By Rajeshree Sabnavis and Harish Hulyalkar of Andersen, Mumbai

In last month’s article, the authors discussed the tricky question of what constitutes a QI and recently issued guidance by the IRS. Part two of this article answers frequently asked questions about the day-to-day application of the QI rules and addresses the need not to be complacent, By Philip Marcovici and Marnin Michaels of Baker & McKenzie’s Zurich office, Thomas O’Donnell in the Paris office and David Balaban and Peter Connors of Baker & McKenzie in New York

Last year's merger of Clifford Chance with Pünder Volhard Weber & Axster has ended in disaster for Clifford Chance in Warsaw, with the Pünder team moving to Beiten Burkhardt Mittl & Wegener (BBLP). A total of 16 Pünder personnel will join the BBLP on April 1 2001. This includes two tax advisers, and with a lateral hire yet to be announced, will bring the number of tax specialists at BBLP, Warsaw, to four.

After extensive consultation, on January 31 2001 Singapore's Ministry of Finance released details of the Supplementary Retirement Scheme (SRS), which was first announced in the February 2000 Budget speech.

The Finance Minister of India, as part of the Union Budget 2001 proposals, has introduced new provisions in the Income Tax Act, 1961, to curb tax avoidance by the abuse of transfer pricing. If legislated, these would be applicable for the financial year commencing April 1 2001.

The distinction between tax avoidance and tax evasion is a key one in Italy’s criminal justice system, By Professor Astolfo Di Amato and Roberto Pisano, of Astolfo Di Amato e Associati, Rome and Milan

There were few, if any surprises, for business in UK Chancellor Gordon Brown's Budget speech, delivered on March 7. Most changes concentrated on helping small businesses and working families, while consultations continue on some of the more substantial corporate measures. As a result, response to the Budget was, at best, tepid. The Institute of Chartered Accountants in England & Wales (ICAEW) branded it as ?a safe, inoffensive rerun of the Pre-Budget Report?, while big five firm PricewaterhouseCoopers described it as prudent. Other responses were less generous.

Proposed changes to Australia’s thin capitalization and debt:equity rules give investors little time to prepare for the dramatic shift in the treatment of relevant transactions, By Joe Niven and Neil Ward Deloitte & Touche, Melbourne