UK: Consultation on extension of HMRC data gathering powers
On 22 July 2015 the UK tax authority HMRC issued a consultation document entitled “Tackling the Hidden Economy: Extension of Data Gathering Powers”. HMRC estimated that in 2012/13 the element of the tax gap caused by the hidden economy amounted
See MoreCzech Republic: VAT reverse charge extended
The VAT reverse charge for a range of agricultural crops has been extended by the tax office. The local reverse charge mechanism is a tool used to help prevent so-called missing trader VAT fraud. This is a fraud whereby criminals target the EU
See MoreUK: Consultation on strengthening sanctions for tax avoidance
On 22 July 2015 the UK government issued a consultation document containing detailed proposals for strengthening the penalties for tax avoidance. The closing date for comments on this consultation document is 14 October 2015. Serial avoiders’
See MoreIrish Revenue clarifies effect of ECJ decisions on VAT rules
On 17 July 2015 the Irish Revenue issued eBrief 73/15 outlining the practical implications of certain decisions of the European Court of Justice (ECJ) in value added tax (VAT) cases. The issues are related to VAT issues for pension funds. Supply of
See MoreCzech tax authorities clarify implications of ECJ Skandia decision
A clarification was recently issued by the Czech Republic tax administration in relation to the implications of the Skandia America decision of the European Court of Justice (ECJ). The ECJ decision concerned Skandia which was a US corporation with
See MoreUK: HMRC publishes report on small business and tax decisions
The UK tax authority HMRC has published a research report entitled Small Business and Choice, reflecting interviews held with small businesses and their views on choice in the tax system. HMRC authorized the research to be done in order to explore
See MoreTurkey: Corporate income tax and VAT on electronic services by nonresident businesses
The Government is considering proposals which would permit the Turkish Revenue Administration to collect both indirect and direct taxes on the online sales and revenue-generating online activities made by nonresident businesses. The Finance
See MoreNigeria: Reverse charge does not apply where nonresident companies render services to a resident
The Tax Appeal Tribunal (TAT) in Nigeria has delivered a decision in the case “Gazprom Oil & Gas Nigeria Limited (Gazprom) Vs FIRS on 10th June 2015. This concerns the imposition of a VAT charge on services by a nonresident company (NRC) to
See MoreNigeria: VAT exemption for basic food items
According to Nigeria’s tax law, basic food items are exempt from VAT. The Federal High Court (Lagos) of Nigeria has issued a decision concluding that packaged water is a basic food item and is exempt from VAT. The decision was issued on 11th May
See MoreChina ratifies Multilateral Convention for Mutual Assistance in Tax Matters
On 1 July 2015 China’s National People’s Congress approved the signature of the Multilateral Convention for Mutual Assistance in Tax Matters. The agreement was originally signed by China in August 2013. The Multilateral Convention contains
See MoreRussia: Convention on Mutual Administrative Assistance in Tax Matters enters into force
The Multilateral Convention on Mutual Administrative Assistance in Tax Matters has entered into force in regard to Russia on 1st July 2015. The Convention and the amending protocol apply to Russia from 1st January 2016. The agreement is intended
See MoreHungary: Parliament approves tax laws for 2016
The Parliament of Hungary approved a package of previously announced tax law changes for 2016 on 16 June 2015. According to the approved Bill the personal income tax rate will reduce from 16% to 15%. The tax allowance for individuals raising two
See MoreUK extends range of eligible investments for ISAs
With effect from 1 July 2015 the UK has extended the list of investments that can be held in an individual savings account (ISA), Junior ISA or Child Trust Fund (CTF). Savings in an ISA, Junior ISA or CTF are eligible for tax relief including an
See MoreUK: HMRC statement on late filing penalties
The UK tax authority HMRC has issued a statement following press reports that it was not pursuing penalties for late filing of income tax returns in the case of more than 800,000 individuals in the UK. The statement from HMRC indicates that it has
See MoreEU: Plans for digital single market published by European Commission
On 6 May 2015 the European Commission published a document entitled “A Digital Single Market Strategy for Europe” outlining a plan for coordinated action to take advantage of opportunities for innovation, growth and jobs brought about by the
See MoreUK: HMRC explains new VAT refund scheme for charities
The UK tax authority HMRC has issue VAT Notice 1001 giving details of the VAT rules where charities can obtain VAT refunds under legislation effective from 1 April 2015. Charities that qualify under the new rules can claim a refund of VAT on most of
See MoreECJ issues preliminary ruling on VAT taxable amount of a building
On 23 April 2015 the European Court of Justice (ECJ) ruled on a question relating to the VAT taxable amount where part of the purchase price of a building relates to interest on borrowed capital. The relevant legislation applicable in this case was
See MoreSlovak Republic: Proposed amendments to tax legislation
The Slovak Republic has proposed changes in the tax legislation including corporate income tax, personal income tax and value added tax. The amendments should come into force from 1st January 2016. The changes are summarized below: Corporate
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