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  • At the time of introduction of the recent tax reform legislation (see International Tax Review April 1999), the German government also announced its intention to reduce the cumulative trade tax and income/corporation tax burden to approximately 35% for all businesses, whether operated as corporations, partnerships, or sole proprietorships, beginning in the year 2000.
  • New directives and a number of recent cases have brought the conclusions of the 1992 Bachmann case into question. Hans van den Hurk of PricewaterhouseCoopers, Eindhoven examines the consequences for insurance taxation in the Netherlands
  • Singapore’s minister of finance used this year’s budget to stimulate the economy by extending tax incentives for domestic companies and foreign investors alike. Ajit Prabhu of Deloitte & Touche, Singapore examines the budget and its consequences for multinationals
  • The Paris Office of Jones Day Reavis & Pogue is acting for Renault on their merger with Japanese company Nissan. The merger, which is valued at $5.4 billion, will create the fourth-biggest car maker in the world.
  • Ernst & Young in the UK and France is advising French minerals extraction and processing plant Imetal on its acquisition of English China Clays. The deal is worth £756 million ($1.2 billion).
  • General Electric Company (GEC) in the UK, is buying Fore Systems, an Internet equipment supplier-based in Pittsburgh for $4.5 billion. GEC has already agreed to sell its defence business to British Aerospace, and is now concentrating on building up its telecoms and internet capability. The acquisition follows GEC's purchase of US telecoms company Reltec.
  • Baker & McKenzie in New York and Stockholm advised Ford on its acquisition of Volvo's car division. The deal is valued at $6.45 billion.
  • Skadden Arps Slate Meagher and Flom is advising US chemical maker Huntsman on its acquisition of four businesses from its UK rival ICI. The transaction is worth over $2.7 billion. The acquisition will be made through a newly formed company, Huntsman ICI Holdings. ICI will hold a 30% stake in the company, and Huntsman a 70% stake.
  • UK companies may be forced to disclose their correspondence with their legal advisers, according to a ruling by an independent adjudicator of tax disputes.
  • The IRS recently issued Announcement 99-1, its long-anticipated proposal to update Revenue Procedure 65-17, which provides procedures for making adjustments to taxpayers' accounts to reflect the consequences of Internal Revenue Code section 482 transfer pricing adjustments.Revenue Procedure 65-17