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An OECD conference has laid the foundations for the taxation of electronic commerce. The conference, entitled: ?A Borderless World; Realizing the Potential of Global Electronic Commerce? was held in Ottawa, Canada. It was attended by nearly one thousand representatives from government, business and consumer groups. The meeting aimed to promote greater international policy compatibility on electronic commerce. The conference reaffirmed five major principles for the taxation of electronic commerce: neutrality, efficiency, certainty, fairness and flexibility.

Lockheed Martin, the US defence and aerospace group is to acquire satellite communications company Comsat for $2.7 billion. The deal will require US Congressional approval, because under US law, no company is allowed to hold a stake exceeding 49% in Comsat, a former monopoly. Lockheed is advised by US law firm King & Spalding. Tax advice came from partners Thomas Wessel in Washington DC and Robert Woodward in Atlanta.

US pharmaceuticals company Bayer Group is to buy Chiron Diagnostics from the Chiron Corporation. The deal is worth $1.1 billion. The acquisition will be completed by the end of the year subject to regulatory approval. Chiron Diagnostics provides blood gas analysis and clinical laboratory systems. Bayer's diagnostics business group provides a range of products and services to hospitals and commercial laboratories. Bayer Group was advised by the New York office of law firm Cravath, Swaine & Moore. Partner Herbert Camp advised on the tax aspects of the deal.

A non-resident income tax law is expected to come into force in Spain effective January 1 1999.

First Active, the Irish building society, is to be floated on the London and Dublin stock exchanges. The market capitalization is expected to reach IR£510 million ($710 million). First Active is raising IR£104 million new capital to fund expansion. The building society has operations in Ireland, Northern Ireland, the UK and Guernsey. Arthur Andersen in Dublin provided tax advice on the Irish aspects of the flotation. The tax partner involved was Sharon Burke. Tax managers were Maireod Foley and Frank O'Neill. Advice in Dublin also came from PricewaterhouseCoopers and law firm Arthur Cox.

At long last, after months of promises and delays from the government, and considerable nail biting from the tax community, the UK Inland Revenue has produced a consultative document on a general anti-avoidance rule (GAAR). The possibility of a UK GAAR was first suggested by chancellor Gordon Brown in 1997, but the new document is the first concrete proof that the government intends to act on the idea.

Directive 69/335/EEC — Indirect taxes on the raising of capital — Merger of companies — Acquisition by a company which already holds all the securities of the companies acquired.

Directive 69/335/EEC — Indirect taxes on the raising of capital — Duty on notarial deeds recording the repayment of debenture loans.

Directive 69/335/EEC — Taxes on the raising of capital — Tax on companies’ net assets.

Recovery of sums paid but not due — Treatment of a national charge incompatible with Community law.