Search results for

The 1998 Japan Tax Reform has now been passed by the Japanese parliament (see International Tax Review February 1998) and became law effective April 1 1998.

The first 1998 taxation notice released by the Ministry of Finance and the State Administration of Taxation on February 25 1998 – The Circular on Income Tax Issues Concerning China-sourced Guarantee Fees Derived by Foreign Enterprises – dealt a severe blow to foreign bankers, who recently lobbied successfully against withholding tax on interest.

Hong Kong’s 1998/1999 budget presented the Special Administrative Region with a challenge – to ballast the economy against instability, but at the same time attract investment. Sunny Choong of Price Waterhouse, Hong Kong examines the results

Canada’s Technical Committee on Business Taxation finds an uneven tax system at odds with development priorities and a highly taxed service sector. By Stephen R Richardson of Tory Tory DesLauriers & Binnington, Toronto

Tax authorities in several countries have recently indicated that they will not allow deductions for expenditure on adapting computer systems for the year 2000. There is widespread concern that computer systems will not be able to cope when the two figure year changes from 99 to 00. Revenue authorities in Australia, Canada, Germany, Switzerland, the UK and the US have all suggested that the cost of solving this problem will be given no special treatment.

ICI is to sell Crosfield, its worldwide silicas and catalysts business, to WR Grace and Company for $455 million.

New Decaux has announced a £475 million ($770 million) bid for UK billboard and bus shelter advertising company, More. New Decaux is advised by Linklaters in London and Paris. Tax partners Martin Lynchehan and Neal Todd are providing tax advice.

BankAmerica and NationsBank have agreed to a merger worth $133 billion. The deal will create the largest bank in the US.

The creation of a Transfer Pricing Coordination Group by the Netherlands Ministry of Finance has been welcomed by tax advisers. The group will be responsible for streamlining the approach of the Dutch tax authorities to new transfer pricing questions, and for ensuring a consistent interpretation of the rules by individual tax inspectors. The group will provide assistance on issues dating from March 1 1998. It will serve as a reference point for the Revenue Service units, prepare policy in some instances and contribute to the creation of an international transfer pricing policy. In the past, transfer pricing rules in the Netherlands have been subject to interpretation by individual tax inspectors, which has led to uneven application.

Tax advisers thrive in periods of change. Financial instability in Asia has made more work for advisers, but brought greater pressure too. Clients demand lower fees and rivals try to poach staff. Phillippa Cannon and Adrian Preston discuss tactics with the winners and their clients