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The Indian government unveiled its 1998 budget on June 1. Although there was no cut in corporate income tax, there were a number of significant proposals: customs duties were increased by 4%. An 8% rise was originally planned but this was reduced following pressure from businesses; expenditure on intangible assets will not be eligible for a tax deduction; a scheme was introduced to reduce tax litigation. Companies that have litigation pending will be given the option to pay a flat rate of 35% on the disputed income. Companies that pay the sum will not have to pay penalties or interest for delaying payment. The scheme will operate between September 1 and December 31 1998; the government will clear all foreign direct investment proposals within 90 days. Proposals exceeding Rs1 billion ($23 million) will be specially monitored for rapid clearance.

Teleglobe, the Canada-based telecommunications group has made a successful bid to acquire US competitor Excel Communications. The merged group will have assets of $6.8 billion.

French telephone company Alcatel-Alsthom has agreed to buy DSC Communications, in a deal valued at $4.4 billion. DSC designs and manufactures systems for the telecommunications industry.

The US Treasury has been forced to withdraw a controversial measure designed to close down tax planning opportunities exploited by multinationals. Internal Revenue Service Notice 98-35 withdraws Notice 98-11 and announces modifications to the rules on hybrid entities.

The Washington National Tax Services office of Price Waterhouse has recruited Barbara Angus, formerly business tax counsel to the Congressional Tax Committee on Taxation.

The IRS has updated its definition of financial products, extending a safe harbour for securities and commodities to derivatives. Linda Carlisle and Daniel Gilroy of White & Case, Washington DC, report on regulations which could lead to a boom in hedge funds

Norwest, the Minneapolis-based bank, has made an agreed bid to buy San Francisco-based Wells Fargo, in a $31 billion stock swap.

The final part of ITR’s survey brings together traditional and emerging oil and gas locations. By Mark Campbell, Mike Kubena and Varinder Matharu of PricewaterhouseCoopers, Baku and Moscow, and Michael Thompson of Freshfields, London

The stars are out in ITR’s fifth survey of North America. Sophisticated clients demanding round-the-clock access and better value add pressure to the tax adviser’s role. Oliver Ralph and Phillippa Cannon identify advisers who excel under pressure

Dutch supermarkets business Ahold has made a $2.7 billion bid for Giant Food, a US supermarket chain. The deal will expand Ahold's US presence to over 1,000 stores. Ahold will acquire the group from shareholders, including US holding company 1224 Group and UK-based company J Sainsbury USA Holdings.