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Textron, the US-based financial services and manufacturing group, is to buy David Brown Group of the UK. The deal is valued at $326 million. David Brown Group is a manufacturer of industrial gears, pumps and transmission systems.

Paris-based company Framatome Connectors is to buy Berg Electronics Corporation of the US for $1.85 billion. The deal will make Framatome the world's second-largest manufacturer of electronic connectors. Framatome will pay $35 a share for Berg's shares, and will assume $400 million of debt.

Southern Electric and Scottish Hydro-Electric have proposed to merge in a transaction valued at $7.7 billion. The merger would give Southern Electric 55% of the combined business.

India's rate of taxation of royalties and fees for technical services varies between 10% and 20%. An interesting position has emerged after the German treaty was entered into on November 29 1996. This treaty provides for a withholding rate of 10% on royalties and fees for technical services.

Finland's amended Companies Act entered into force on September 1 1997.

Spanish tax legislation has been always sensitive to the potential risk that non-resident (non-established) taxpayers deriving income from Spanish sources do not comply voluntarily with their tax obligations.

Most large Mexican business taxpayers must have their annual tax returns certified by a public accountant. Other taxpayers may do so on a voluntary basis as a shield against a government tax audit. For calendar year taxpayers required to have an accountant's report (dictamen fiscal), the tax return is due on March 31 and the dictamen fiscal on July 31.

On July 24, Russian government resolution No. 786 was published in Rossiskaya Gazeta, effective August 1 1998. This is designed to place every tax-registered business in Russia on an accrual basis for the payment of value-added tax (VAT). While such a move would not seem unusual for businesses familiar with the EU VAT system or many other systems throughout the world, its impact in Russia has huge potential costs. The country's current economic situation, the cash flow difficulties experienced by many Russian businesses and the fact that this resolution provides no relief for VAT bad debts all impose considerable burdens. In addition, the proposal applies on an accrual basis to sales only – VAT recovery on costs will still be based on a cash basis.

Germany has inaugurated a new era of opportunities for shareholder buybacks. Wolfgang Oho and attorney at law Günther Bredow, of Pünder, Volhard, Axster & Weber in Frankfurt, examine the balance sheet and fiscal considerations

European Monetary Union (EMU) will affect the European group on two levels – structural and technical. Ernst & Young’s international tax group London examines some of the most striking of the structural business effects, and highlights technical pitfalls.