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  • South Africa
  • Freedom of establishment – Establishment of a branch by a company not carrying on any actual business – Circumvention of national law – Refusal to register.
  • It may not feel like it, but corporate tax rates around the world are falling. And residents of developing countries are already benefiting from the types of reduction that their counterparts in OECD countries can only dream about
  • New York law firm Wachtell, Lipton, Rosen & Katz is advising USA Networks Inc, the cable shopping channel, on its acquisition of the internet search engine Lycos.
  • The UK Inland Revenue has published its revised regulations governing the payment on account regime that is introduced under corporation tax self assessment (CTSA). The revised regulations make few changes to the draft that was published in April 1998. The main changes are outlined below.
  • The period for offsetting tax loss carryforwards, which was increased in 1996 from five to seven years, has been further increased to 10 years with effect from January 1 1999.
  • Part I of the Russian Tax Code became effective on January 1 1999. It introduced a number of developments in personal income tax legislation, which will affect expatriates working in Russia as well as local staff. The main provisions are outlined below, but it should be noted that the legislation is probably more remarkable for what it did not include.
  • The use of the so-called vis attractiva (literally power of attraction) highlights the link between the concepts of income and residence. It might be used to attribute foreign income profits to substantially Italian tax resident individuals who are formally resident abroad.
  • The launch of the euro and, with it, European Monetary Union in Germany and the 10 other participating EU countries, effective January 1 1999, is the most significant European economic and political act since the founding of the European Economic Community in 1957.
  • In the global race to attract multinationals through tax incentives, Switzerland has been losing out. Markus Neuhaus of PricewaterhouseCoopers, Zurich reports on a series of laws and regulations designed to win back old investors and attract new ones