Germany strengthens VAT penalties
Germany is to impose stronger value added tax (VAT) penalties in relation to cases where the taxpayer has voluntarily disclosed incorrect amounts on the return. Companies detecting and correcting errors in their VAT returns has tended to be treated
See MoreEU – Update on financial transaction tax
The ECOFIN Council, consisting of economic and finance ministers of EU countries, has looked at a proposal for a financial transaction tax (FTT) directive. The member states involved in the measure want to implement a revised version of their
See MoreEU – European Bankers Warn Of FTT Fallout
The European Banking Federation (EBF) considers that the introduction of a financial transaction tax (FTT) by some European Union member states will create uncertainty for business in the whole EU. Even if the FTT is implemented by only some of the
See MoreEU To Reduce Bureaucracy for Trade Sanctions
The European parliament has given its approval to new rules that will permit a rise in customs duties on the EU’s trading partners by means of an executive decision. This will enable the Commission to more efficiently enforce EU rights under
See MoreEU Member States Criticized for Lack of Transparency in FTT
At the EU’s ECOFIN meeting of economic and financial ministers on 6 May 2014 a joint statement was issued by ten of the member states that are going ahead with the financial transactions tax (FTT) In all, eleven EU member states have decided to
See MoreEU Emissions Trading Changes Extended To EFTA
A new regulation has been inserted into the European Free Trade Association (EFTA) agreement to incorporate changes already made under the EU’s Emissions Trading Scheme. The changes were originally put through by the EU in April 2013 to ensure
See MoreEU: CJEU dismisses UK’s challenge to EU Financial Transaction Tax
The Court of Justice of the European Union (CJEU) has dismissed an attempt by the UK to challenge the legality of the Council decision of 22 January 2013 in respect of enhanced cooperation by a group of EU member states to introduce a financial
See MoreUS May Close Door on Russian FATCA IGA Talks
Talks with Russia on an intergovernmental agreement (IGA) in connection with the FATCA legislation have been suspended by the US. The aim of the agreement if reached would be to enable foreign financial institutions (FFIs) in Russia to comply with
See MoreEstonia: Announces the corporate income tax rate
The government has announced its intention to reduce the corporate tax rate to 20% in
See MoreUK:HMRC challenged on VAT default surcharge
The victory of a newspaper group in a legal action against HMRC in relation to a large VAT penalty shows the importance of the proportionality principle of EU law. The large fine related to a late VAT return and the judgment illustrates that
See MoreSpain Adopts Stability Program Confirming Future Tax Reform
Spain is to publish its plans for reform of the individual income tax system in June 2014. The reform would aim to simplify the tax system to reduce the amount of compliance costs currently incurred by Spanish companies. The reforms are likely to
See MoreRomania’s Government approves tax exemption on reinvested profit
Under an emergency ordinance an exemption from tax on reinvested profits is to be put in place in July 2014 and remain until December 2015. The measure aims to increase the amount of company profits that are ploughed back into the business in the
See MoreVAT rate increases in Portugal
Among a range of austerity measures introduced in Portugal is a rise in the standard rate of VAT. The rate is to increase from 23% to 23.25%. This follows earlier rises in the rate in 2008 and 2011. The new measures also include an increase in
See MoreOman – Spain DTA
Oman and Spain signed a double taxation agreement (DTA) on April 30, 2014. No further details of this agreement are currently
See MoreNetherlands Agrees to Amend the Russian DTA
The Netherlands are to begin negotiations with Russia to amend the double taxation agreement (DTA) concluded in 1996, with a first round of negotiations expected to be held in June 2014. Russia has asked for a revision to the agreement to bring it
See MoreItaly – Reduced rates of IRAP regional tax
Decreto-Legge n 66/2014 which was published on 24 April 2014 reduces the rates of the regional tax on productive activities (IRAP). This amendment is awaiting ratification from parliament within 60 days but could be subject to further alterations
See MoreItaly Expands Employee Productivity Tax Incentive
Italy has extended into 2014 the reduced individual income tax rate for earnings from work arrangements that increase corporate productivity. This lower 10 percent rate was first introduced in 2008 and has been extended in the 2014 budget.
See MoreIreland – Belgium DTA
Ireland and Belgium signed a Protocol to amend their double taxation agreement (DTA) on April 14, 2014. The new Protocol updates the Article of the treaty in respect of the exchange of tax information, strengthening the measures for information
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