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  • US defence contractor Raytheon has completed the acquisition of the Hughes defence electronics business from General Motors. The deal is worth $9.5 billion and makes Raytheon the world's third-largest defence and aerospace group.
  • Failure by a member state to fulfil obligations — Directive 90/434/EEC — Failure to transpose.
  • UK insurance group Guardian Royal Exchange has paid £435 milllion ($700 million) for PPP Healthcare, the UK's second largest private medical insurer. The acquisition gives the group a strong position in the private medical insurance and long-term care markets PPP Healthcare was advised by Linklaters in London. Tax partner Charles Hellier, and tax assistants Sarah Squires and Paul William worked on the deal.
  • US chemical group Hercules has made a hostile bid for US chemicals company Allied Colloids, a UK producer of water-treatment chemicals. The deal is valued at $1.8 billion.
  • Korea’s International Tax Coordination Law updates the country’s transfer pricing regime, to deal with a growing volume of international transactions. Brian Park of Price Waterhouse, Seoul looks at the detailed requirements of the regime
  • LucasVarity is to sell its diesel engines business to Caterpillar, the world's largest maker of construction equipment. The deal, worth $1.325 billion, will enhance Caterpillar's market position in small engine construction.
  • Royal Bank of Scotland has acquired GRS Holding Company from a shareholder group led by Nomura International. GRS is the holding company of Angel Train Contracts, a rolling stock leasing company.
  • France's finance Act for 1998, applicable to 1997 income, is characterized by the suspension of the tax reduction plan announced by the previous government (personal income tax rate maintained at the maximum of 54%), and by an increase in the taxation of passive income.
  • The German tax code was revised in 1990 to permit net operating losses to be carried forward indefinitely for income, corporation, and trade tax purposes. In the case of income and corporation tax, the indefinite carryforward applies to losses which cannot be carried back to either of the two years preceding the year in which they were incurred. The trade tax has no loss carryback provision.
  • Italy has introduced a dual income tax system, in the hope of overturning existing levels of capitalization. Paul Smith and Piergiorgio Valente of Ernst & Young, Milan, assess the benefits of the new system, and question the likelihood of a serious challenge to debt/equity policies