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  • France and Switzerland have signed a new protocol to the existing income tax treaty of 1966/1969, which entered into force on August 1 1998. The major changes are outlined below. Nevertheless there is still uncertainty as to whether the protocol will have an impact on the Swiss branches of French companies in regard to the French anti-abuse legislation. This point is still being discussed.
  • Coca-Cola Beverages, one of the largest bottlers of soft drinks in Central and Eastern Europe, has floated on the London Stock exchange. The flotation valued the company at over £1.7billion ($2.72billion). The Coca-Cola Company expects to hold 50.5% of Coca-Cola Beverage's shares. The London listing is to be followed by a listing in Sydney. Coca-Cola Beverages was formed by Australian company Coca-Cola Amatil and then demerged in order to be listed.
  • Inco of Canada, the world's largest nickel producer, has agreed to sell its alloys operation to Special Metals of the US for around $408 million. The deal is part of Inco's sale of non-core assets to pay debts.
  • To encourage businesses in Hong Kong to repatriate their funds from overseas, the Hong Kong Special Administrative Region government announced on June 22 1998 that interest on local bank deposits will be exempt from profits tax. This is good news to those companies with surplus cash. Several listed companies have responded positively to the announcement already, saying they will move their offshore bank deposits back to Hong Kong.
  • American Bottling Company has acquired Beverage America and Select Beverage of the US. American Bottling Company is a joint venture between Cadbury Schweppes and the Carlyle Group.
  • As Russia continues to struggle with tax collection, a package of tax bills was presented to the Russian Duma in June. While some of the new laws were passed, the failure of the Duma to approve the entire package of laws before the summer recess resulted in the introduction of additional measures by government resolution. Some important recent additions and changes follow.
  • Notice 98-35 has offered taxpayers respite from an IRS attack on hybrid transactions. Michael J Cooper & Stan Torgersen of Deloitte & Touche LLP, Washington DC look at the dimensions of transitional relief and the likely form of future regulations
  • Australia’s government wants to introduce a goods and services tax, as the first step on the road to a radical tax policy rethink. Ian Dinnison, of KPMG, Melbourne looks at the emerging contours and practical implications of the reform programme
  • Multinationals generally have not put Lao People’s Democratic Republic on their agenda of investment locations. To redress this, the Lao PDR government is actively promoting investment. By John Fisher and Van Mumby, PricewaterhouseCoopers Sydney and Hanoi
  • US banks Firstar and Star Banc have agreed a merger worth $6.8 billion. The deal will create a bank with assets of $38 billion.