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  • UK advertising company GGT has agreed to a takeover by US media services giant Omnicom. The bid was triggered by the loss of key advertising contracts at GGT's US operation, Wells BDDP. The deal is worth £143 million ($230 million).
  • The Advocate-General has issued his opinion in the ICI v Colmer case before the European Court. The issue was whether a consortium company with EU trading subsidiaries (as opposed to wholly or mainly UK subsidiaries) would qualify under provisions allowing surrender of losses. The House of Lords in the UK had ruled that EU companies did not qualify under the UK legislation.
  • Scottish Equitable has disposed of Aegon Financial Services Group to the UK's Life Assurance Holding Corporation for an undisclosed sum.
  • Glaxo Wellcome is set to acquire Polish medicine manufacturer Polfa Poznan following a successful competitive tender with the Ministry of State Treasury in Poland. The £133 million ($220 million) deal will make Glaxo Wellcome the largest pharmaceutical company in Poland.
  • Compaq Computers is to merge with Digital Equipment Corporation. The deal, valued at approximately $9.6 billion, is the largest in the history of the computer industry and will create the world's second-largest computer company after International Business Machines (IBM).
  • The Internet Tax Freedom Act – legislation seeking to impose a national moratorium on US state and local taxation of the Internet and electronic commerce conducted over the Internet – was introduced in March 1997 in the US Congress by representative Christopher Cox, a Republican member of the House from California, and senator Ron Wyden, a Democratic senator from Oregon.
  • In the May 1997 edition of International Tax Review we briefly commented on proposed changes to regulations regarding a Norwegian parent company's right to credit for underlying foreign corporate taxes relating to dividends received from foreign subsidiaries. The bill passed parliament and is effective for dividends received from the fiscal year 1997.
  • Under Finland's legislation on the Taxation of Shareholders of Foreign Intermediate Companies (the Act), resident taxpayers in Finland must notify the Finnish tax authorities of their holdings in foreign companies. The resident taxpayers are liable to pay tax on their share of the profits of such companies in accordance with certain conditions.
  • By virtue of article 115 quinquies of the French tax code, after-tax profits realized by foreign companies in France (especially through a French branch) are deemed to be distributed to non-French tax resident partners, and are subject to a 25% branch tax (with possible limitation or exemption, depending on the applicable tax treaty).
  • A special report prepared by Christopher Fitzgibbon of Deloitte & Touche, London