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  • The German Finance Minister, Hans Eichel, has indicated that he will appoint Heribert Zitzelsberger, Head of Tax at Bayer Chemicals, as his deputy on tax policy. The move may promote better relations between industry and government on tax policy, following the unpopular policies of former finance minister Oskar Lafontaine.
  • US law firm Wachtell, Lipton, Rosen & Katz is advising Fleet Financial on its takeover of BankBoston. The acquisition, which is valued at $16 billion will end BankBoston’s four year aggressive expansion policy.
  • From April 1 1999 foreign banks and securities dealers with no presence in Switzerland will be able to trade on the Swiss stock exchange. This change has triggered amendments to Swiss stamp tax legislation. Charles Hermann of KPMG, Banking Tax Group, Zurich reports
  • A recent advance ruling discussed the ambit of the non-discrimination clause in Article 26 of the Double Taxation Avoidance Agreement between India and France (DTAA). The issue was whether the applicant (a non-resident French Banking Company, operating through a branch office in India) could use lower tax rates as applicable to a domestic company (as against the higher rates applicable to a non-domestic foreign company).
  • The convention on the elimination of double taxation in connection with the adjustment of profits of associated enterprises (the Arbitration Convention) comes into force in Finland on May 1 1999. This relates to Denmark, Italy, Luxembourg, the Netherlands, Portugal and the UK.
  • Multinationals operating in India have recently used treaties to challenge the application of different tax rates to domestic and foreign companies. Jignesh R Shah of PricewaterhouseCoopers, Mumbai analyses the court decisions and their consequences
  • Director of Tax and Corporate Strategy UK
  • The days when the Netherlands was the location of choice for all foreign holding companies are over. As EU tax rates converge and the parent-subsidiary directive takes effect, competition for business is hotting up. Allan Cinnamon of BDO Stoy Hayward, London reports
  • UK Customs & Excise have lost a landmark case on VAT to credit company FDR. The decision, by a VAT tribunal, places pressure on the government to scrap the measure it introduced in the March Budget, stating that outsourced financial services are subject to VAT.
  • Freedom of establishment — Tax legislation — Tax on company profits.