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  • Corporate tax
  • The following important tax developments have taken place in India.
  • Further to Australia's Review of Business Taxation, a number of capital gains tax changes became law from December 10 1999. Included in the measures are scrip-for-scrip rollovers and improved incentives for venture capital investment.
  • Nabisco and Hicks Muse, who are acting under the joint venture title Burlington Biscuits, are offering $3.97 for each United Biscuits share. If the offer is successful, Nabisco will also acquire United Biscuits' operations in China, Hong Kong and Taiwan. Although it is reported that the UK company has accepted the US offer, the French consortium Finalrealm has launched a £1.25 billion rival bid.
  • Bruno Gouthiere, of Bureau Francis Lefebvre, Paris analyzes the reasons for repatriating a Luxembourg captive reinsurance business back to France
  • Australia’s thin capitalization rules are covered in the wholesale tax reforms put forward in the Ralph Report. Peter van den Broek of Clayton Utz, Melbourne outlines the likely changes and their impact for international operations
  • The Dutch Supreme Court has ruled that a German engineering company had a permanent establishment in the Netherlands, and therefore the Netherlands was entitled to levy wages tax on the wages of German employees who worked occasionally in the Netherlands.
  • China has announced that it intends to scale down its preferential tax policies for foreign companies.
  • BT's £1.5 billion ($XX) bid included an offer of $100 for each American depository share. This exceeded the $85 offered as part of Newtel's $1.6 billion hostile takeover bid. Newtel was formed out of the recent merger between Telia and Telenor. Newtel consulted Linklaters & Alliance, with partner Charles Hellier leading the tax team.
  • Effective January 1 2000, a new Norwegian Tax Act came into force. The new act replaces both the old General Tax Act and Company Tax Act as well as several other special acts and provisions, including parts of the parliament's annual tax resolution. The new Tax Act is a technical revision of the old legislation and involves, in principle, no material changes. Budget amendments for 2000 have also been announced, and are described below.