Search results for

On June 18 1998 the US Internal Revenue Service (IRS) issued final regulations relating to certain transfers of stock or securities by US persons to foreign corporations, pursuant to the corporate organization and reorganization provisions of the Internal Revenue Code. These final regulations are effective for transactions occurring on or after July 20 1998, however, taxpayers may elect to apply the final regulations retroactively to transfers of foreign stock or securities occurring after December 17 1987. For US federal income tax purposes, transfers of property by a US person to a foreign corporation are treated as taxable exchanges unless the transfer qualifies for one of the exceptions to the general rule. One of the more important exceptions to this general rule provides for nonrecognition treatment for the transfer of stock or securities of a foreign corporation that is a party to the exchange or reorganization.

Collection techniques: Ukraine goes for tax hostages...

BTP, the UK-based chemicals group, is to buy Italian chemicals company Archimica for £100 million ($160 million). The deal will take BTP into making active ingredients for pharmaceuticals companies. Archimica specializes in anti-AIDS and antibiotic molecules. BTP was advised by Ashurst Morris Crisp in London. Tax partner Richard Palmer worked on the deal. Negri Clementi Montironi & Soci in Milan also worked with BTP.

As part of the move to bring the controlled foreign corporation (CFC) legislation within corporation tax self- assessment, the UK Inland Revenue has announced that the excluded countries list exemption is to be brought within regulations so that in future UK companies will have a legal basis for relying on it.

Capital gains on the repayment to non-residents of units in Spanish mutual funds are taxed at 35%, unless the non-resident in question is protected by a tax treaty or is an EU resident, in which case the capital gain will be tax exempt.

In the July/August issue of International Tax Review, we commented on the Federal Court of Appeal decision in Shell Canada Limited, which disallowed certain interest deductions relating to weak currency financing transactions. While it is still not clear whether an appeal of that decision will be heard by the Supreme Court of Canada, the plot has thickened slightly with the release of a second case, Canadian Pacific Limited.

Belgium set to alter taxes on share exchanges and stock options

UK businesses will be able to reclaim an estimated $160 million from HM Customs and Excise as a result of the European Court of Justice’s long-awaited ruling in the First National Bank of Chicago case. By Graeme Ross and Adam Lloyd, KPMG London

The Irish government has formally announced the new corporate tax regime for Ireland, which has been agreed with the EU Commission.

New Administrative Principles on transfer pricing documentation will mean substantial exposure for taxpayers lacking an appropriate defence strategy. Gianmarco Monsellato of Deloitte & Touche, Paris advises taxpayers on how to survive in a harsh climate