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  • Rival US petroleum companies Ultramar and Phillips Petroleum have signed a joint venture agreement in a bid to cut costs and increase productivity. The operating assets of Ultramar and the refining, transportation and marketing of Phillips will be combined into a joint venture company, Diamond 66.
  • A call by Germany and France for an end to unanimous voting on tax issues in the EU has led to heated debate over tax sovereignty. Many member states fear that the loss of their veto could lead to harmonization of taxes across Europe.
  • The Canadian GAAR has yet to show its teeth, but tax advisers and their clients should be under no illusions about its potential bite. Robert Couzin of Ernst & Young, Toronto examines the rule and highlights the principal areas of concern
  • The OECD conference on e-commerce laid down basic principles and areas for debate. But, as Christine Sanderson of PricewaterhouseCoopers Global and Electronic Business Group reports, there is work still to be done for states to avoid the need for unilateral action
  • Mexico has fared better than some of its Latin-American neighbours in the economic crisis. But the outlook is not good and high tax rates are viewed as a potential safety net
  • The inclusion of food in Australia's planned goods and services tax (GST) is ensuring the proposals get a rough ride through the Senate. Dissent may result in the final legislation being more complex than first envisaged.
  • Enron Corporation is to purchase Wessex Water of the UK for £1.34 billion. The purchase is a key step in Enron’s formation of a new global water company.
  • To increase the attraction of Switzerland as a holding location and a business headquarters site, various favourable tax reform measures were adopted by the Swiss parliament in October 1997. Except in the unlikely case of a referendum, the reform will probably enter into force as of January 1 1998. The most significant measures are discussed below.
  • Under the 1997 Mexican income tax reforms, all Mexican companies with international related-party transactions are obliged to document that their transfer prices were determined in accordance with the arm's-length standard. In particular, they must document that one of the transfer pricing methods specified by law has been employed.
  • The Portuguese parliament and the president have approved and ratified double tax treaties with the Czech Republic and Poland.