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The Spanish Corporate Income Tax Law (Law 43/1995 of December 27), in force since 1996, provides that charges for intercompany management services are deductible if, among other things, they are compulsory for the recipient company by virtue of a previous written contract.

Approximately one year ago, the German government announced ambitious plans to broaden the tax base and cut tax rates to achieve net annual tax reductions exceeding Dm30 billion ($16.6 billion). This "great tax reform" has so far been caught up in political deadlock. Nevertheless, some significant legislation has emerged.

Legislation to restrict trading in franking credits has recently been introduced into parliament, restricting the use of franking credits by Australia-resident shareholders. The restrictions apply where the company is effectively wholly-owned by non-resident or tax-exempt entities.

Argentina's Executive has announced a comprehensive package of fiscal measures, which has been submitted to Congress for approval.

In the second part of International Tax Review’s survey of oil and gas taxation, Peter Poulos of KPMG, Melbourne examines how Australia’s tax regime applies in the context of the energy industry, and highlights international considerations

In the first of three articles on investment in Indochina, John Fisher and Tim Watson of Coopers & Lybrand, Melbourne and Ho Chi Minh City analyse Cambodia’s attractions, which include flexibility and some unique tax incentives and guarantees

Deloitte & Touche in the US has acquired the assets of Real Estate Tax Services Inc. When the acquisition is complete, Real Estate Tax Services will operate in 25 US offices of Deloitte & Touche, as Deloitte & Touche Property Tax Services.

The Japanese prime minister Ryutaro Hashimoto has announced a three-year plan to reduce corporation taxes. The aim is to bring taxes down to the same rate as in other industrialized nations. Recent reductions have cut the effective rate to 46.36%. However, there is uncertainty over the strength of the goverment's commitment to low taxes. Jonathan Stuart-Smith, senior manager at Deloitte Touche Tohmatsu in Tokyo notes that: ?Some of the tax cuts announced so far are only temporary but the government is coming under increased pressure to make them permanent.? There are fears that the government may be tempted to increase taxes again once the economy shows signs of recovery. Japan has a high level of public debt and the government is committed to halving its budget deficit to within 3% of GDP. Last year's fiscal austerity law has been delayed to accommodate the reductions, but the government may not allow further delays in future years.

A Canadian business tax committee, set up as part of the 1996 budget, has recommended a reduction in Canada's corporation tax rate from 43% to 33%. The committee claims such a reduction would improve the competitiveness of Canada as a business location.(For related coverage see Canada unveils a new model system.)

Senior partners from Price Waterhouse and Coopers & Lybrand met in New York in April this year, to discuss strategy proposals for a merged firm. One proposal involves hiring 1,000 new members of staff every week for the next five years.