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Belgian finance minister Didier Reynders has said he will push for tax harmonization in the Eurozone when Belgium takes on the EU presidency in July this year. He was speaking at a conference last week on preparations for the introduction of Euro notes and coins. Reynders is well known as a strong supporter of the single currency and of closer political cooperation in Europe.

Sixth VAT Directive – Deduction of input tax – Holding company – Involvement in the management of subsidiaries – Dividends – Costs incurred in acquiring shares.

Energy and natural resources specialist Juan Pablo Godoy will join Baker & McKenzie later this month to head the firm's tax practice in Colombia, after a spell as the legal chief of a pipeline consortium

India's mutual fund industry is to benefit from government plans to slash the 20% dividend tax to 10%, along with a 1.5% cut in small saving rates. Mutual funds expect the tax cuts to lead to an increase in money flowing into the industry.

Cooley Godward has recruited an international tax specialist as the US firm looks to strengthen its cross-border practice. Mark Hrenya joins Cooley's Denver office as a partner from US rival Holme Roberts & Owen, having served as chair of its international group. Hrenya advises technology clients on the federal income tax implications of cross-border M&A, the structuring of their international operations, including foreign currency transactions, earnings repatriations, transfer pricing matters and the use of income tax treaties.

Malaysian prime minister Mahathir Mohamad has called for a new international tax on rich countries. This follows calls for a levy on capital repatriations from developing countries by Indian prime minister Atal Behari Vajpayee last month. At the Bo'ao Asian Forum in China this week, Mohamad suggested the UN could administer the tax, and use the revenue to fund development programmes in poor countries. Since part of the wealth of the rich countries comes from the exploitation of the resources of the poor, it is only fitting that they return some of it to the poor, he said.

US financial services companies are lobbying the US government for permanent tax breaks on profits earned abroad. Temporary provisions giving a tax deferral on foreign earned profits are due to expire this year. Estimates of the cost of the tax breaks to the government range from $800 million to $1.4 billion a year, with these figures expected to rise to as much as $10 billion a year by 2011.

2-4 years pqe Don't miss this opportunity to join a premier US/UK tax team. Broad role, open culture and an opportunity to stand out. (£US rates)

The Swiss finance minister is considering a tax amnesty that would encourage private investors to reveal any undeclared assets in Swiss bank accounts. The Federal Council has opposed such an amnesty in the past, but the finance ministry now believes it could be worthwhile. Considerable sums are thought to lie hidden untaxed in Swiss accounts.

It is widely known that the EU legislation applicable to VAT is contained in the Sixth VAT Directive (as amended), pursuant to which electricity is considered a tangible good. This means that sales of electricity can take place in the domestic and foreign markets, giving rise to domestic sales, imports, exports, intra-EU acquisitions or supplies. As a tangible good, electricity should also be capable of being transported. However, this conclusion, which is logical for movable goods, becomes doubtful in the case of electricity. As a result, different approaches have been adopted on a country-by-country basis. This treatment dates back to 1977 (Sixth VAT Directive) and refers to heavily regulated environments where supplies were basically domestic in nature with a limited number of operators. Now, 24 years later and in the midst of an EU-wide process of deregulation and liberalization, these rules are insufficient to cope with the variety of situations and growing complexity of the different markets.