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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

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.)

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.

Schroder Ventures, a private equity provider, is to buy Leica Microsystems, part of the Leica Holdings group, in a deal valued at $500 million. Leica Microsystems is a world leader in the manufacture of microscopes and other related equipment for the healthcare, research and semi-conductor industries.

German publisher Bertelsmann is to acquire Random House from New York publishing house Advance Publications, for an undisclosed sum believed to be around $2 billion.

Bacardi-Martini has bought the Dewars Scotch Whisky and Bombay Gin brands from Diageo in a £1.1 billion ($1.8 billion) deal. Diageo's sale of the brands was required by the US and EU regulatory authorities, when the company was created by the merger of Guinness and Grand Metropolitan in December 1997.

Since April 1996, the French tax authorities have been able to require specific information as regards intra-group transactions, according to a strict procedure (article L13B of the French tax code for tax procedures). If the response of the enterprise is considered insufficient, there is a risk of a fine of Ffr50,000 ($8,300) for each financial year the request concerns. The tax authorities can make their own tax basis assessment from whatever information is available to them (although the procedure remains adversarial).

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.