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UK energy group BG plans to return up to £1.3 billion ($2.1 billion) of its share capital to shareholders. On October 27 1997, shareholders voted in favour of the company's proposed capital reorganization. The number of ordinary shares in the issue will be reduced by 11.8% to reflect how much of the company's current market capitalization is being returned to shareholders. In this way the cost of capital to the company will be reduced with the greater use of debt rather than equity finance.

US telecommunications group MCI Communications has agreed to merge with WorldCom, the US long-distance telephone operator. The deal is valued at $37 billion.

Foreign investment flooded into Latin America in 1997, but investors should note that the region cannot be treated as a homogeneous unit, both in terms of tax rules, and in terms of the level of advice provided. Phillippa Cannon and Moray Borthwick report

In an attempt to circumscribe tax planning, the UK government is toying with a general anti-avoidance provision. Peter Nias and Gareth Amdor, of Simmons & Simmons, London, argue that such a provision should be judged against first principles – not least fairness

International Tax Review takes you behind the scenes of this year’s deals. Advisers from Ernst & Young, Herbert Smith, KPMG, Haarmann, Hemmelrath & Partner and Revisuisse Price Waterhouse examine deals in which tax played a decisive role

The US Internal Revenue Service has announced its intention to revoke a long-standing ruling on contract manufacturing. Alan Granwell and Dirk Suringa of Ivins, Phillips & Barker, Washington DC, assess the restructuring implications for US CFCs

Mexico’s parliament is considering a wide-ranging tax bill. Manuel Solano, Sofia Alvarez, David Garcia Fabregat and Andrea Santos of Coopers & Lybrand Asesores, Mexico City, examine the answers the bill puts forward, and some of the question marks that remain

Nico Burki, tax partner at Bar & Karrer, has made the bold decision to set up his own law firm in Zurich.

China has announced that it will restore a duty exemption on the importation of capital goods by foreign investors.

On November 51997, the European Commission released a voluntary code of conduct, designed to curb harmful tax competition.