Tax News Daily
The latest tax news from around the world, summarised and tagged for tax professionals. Updated twice daily.
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TN Rice Millers Seek Removal of 5% GST on Rice Ahead of Upcoming Council Meeting
Tamil Nadu rice millers are lobbying for the removal of the 5% GST on rice ahead of an upcoming GST Council meeting. The industry argues the tax burdens producers and consumers of a staple food commodity. This represents an active tax policy advocacy effort targeting a specific GST rate change, with potential implications for the agricultural and food processing sectors if the Council acts on the request. The outcome could affect GST classifications for rice and similar staple goods across India.
Germany Signals the Future of Tax Administration: A 26‑Point Action Plan Built on the E‑Invoice
Germany has unveiled a 26-point action plan positioning e-invoicing as the cornerstone of its future tax administration strategy. The plan outlines how mandatory e-invoicing infrastructure will be leveraged to modernize tax compliance, reduce fraud, and streamline reporting obligations for businesses. The initiative signals a broader shift toward real-time or near-real-time tax data exchange between businesses and authorities, building on the existing B2B e-invoicing mandate that took effect in January 2025. The action plan has significant implications for how German tax administration will evolve, making it a key development for businesses operating in Germany.
Avi-Yonah: Taxation and Deglobalization
Professor Reuven Avi-Yonah examines the intersection of taxation and deglobalization, exploring how the retreat from global economic integration is reshaping international tax frameworks. The analysis likely addresses how rising trade barriers, reshoring trends, and geopolitical fragmentation challenge established international tax norms, including transfer pricing rules and the OECD's Pillar Two framework. As supply chains restructure and multinational enterprises reconfigure their operations, tax policy must adapt to a world where cross-border activity is increasingly constrained by non-tax factors. The piece contributes to academic debate on whether current international tax rules remain fit for purpose in a deglobalizing environment.
Bipartisan Bill Would Tax And Regulate Hemp THC Products
A bipartisan legislative bill has been introduced in the U.S. Congress that would establish a federal tax and regulatory framework for hemp-derived THC products. The proposal seeks to impose excise taxes on hemp THC items, which currently exist in a legal grey area following the 2018 Farm Bill. The bill would bring hemp THC products under a structured tax regime similar to other regulated substances, addressing gaps in federal oversight. This development is significant for the hemp and cannabis industries as it signals congressional intent to formally regulate and tax a rapidly growing product category at the federal level.
Administraciones tributarias de América Latina discuten sobre problemas y buenas prácticas en materia de gestión tributaria
Tax administrations across Latin America, coordinated through CIAT, convened to discuss challenges and best practices in tax administration management. The forum provided a platform for revenue authorities to share experiences on improving compliance, modernizing tax systems, and addressing common operational difficulties. Discussions likely covered areas such as digitalization of tax processes, taxpayer services, audit strategies, and inter-agency cooperation. Such regional exchanges aim to strengthen institutional capacity and harmonize approaches among Latin American tax authorities, contributing to more efficient revenue collection and improved taxpayer compliance across the region.
Inland Revenue Reconsults on a Range of “Current GST Issues”
New Zealand's Inland Revenue has opened a second round of consultation on several unresolved GST issues, revisiting proposals from an earlier discussion document. Topics under reconsideration include the GST treatment of certain financial services, mixed-use assets, and cross-border supplies. The reconsultation signals that Inland Revenue is refining its policy positions following earlier feedback from taxpayers and practitioners. This is a meaningful regulatory development for New Zealand businesses navigating GST compliance, particularly those involved in financial services or with complex supply arrangements that fall into grey areas under current rules.
Recodification of VAT into the CIBS Likely Postponed to 1 January 2027
The planned recodification of VAT rules into France's new Code des Impositions sur les Biens et Services (CIBS) is likely to be delayed from its originally anticipated timeline to 1 January 2027. The CIBS is a major legislative project to consolidate and modernise indirect tax law in France. The postponement gives businesses and practitioners additional time to prepare for the structural changes the recodification will bring, though the substantive law is not expected to change significantly. The delay reflects the complexity of integrating existing VAT provisions into the new code.
A Matter of Balance: IRS Appeals Processes, Staffing Create Growing Concerns for Practitioners, Taxpayers
Practitioners and taxpayers are raising growing concerns about IRS Appeals processes and staffing shortfalls that are creating significant delays and imbalances in dispute resolution. The article examines how reduced staffing within IRS Appeals is affecting case timelines, access to hearings, and overall fairness in the tax controversy process. Tax professionals report difficulties securing timely appeals conferences and adequate engagement from Appeals officers. The situation points to systemic challenges within IRS administration that may undermine taxpayer rights and due process protections, prompting calls for resource investment and structural reform within the Appeals division.
The WHO’s Excise Tax Policy Aims at the Wrong Target
The Tax Foundation critiques the World Health Organization's excise tax policy on tobacco, arguing it misses its intended target. The article examines the EU's tobacco excise tax framework and how WHO guidance shapes member state policy, contending that the approach is economically flawed or counterproductive. The analysis challenges the assumption that higher excise taxes effectively reduce tobacco consumption or improve public health outcomes, suggesting the policy design is misaligned with its stated goals and may have unintended consequences for consumers and tax revenues across EU member states.
How CRA’s Expanded Section 160 and Budget 2025 Supplementary Rule Closes Asset Transfer Loopholes
Canada's Budget 2025 introduces a supplementary rule expanding Section 160 of the Income Tax Act, which holds transferees jointly liable for a transferor's tax debts when assets are transferred at below fair market value. The CRA's expanded provision closes loopholes that allowed taxpayers to shift assets to non-arm's-length parties to avoid tax collection. The new rule targets additional transfer scenarios previously outside Section 160's scope, strengthening the CRA's ability to pursue tax debts through asset transfers. Practitioners advising on estate planning, corporate restructuring, or family wealth transfers must reassess strategies that rely on asset transfers to related parties.
Gambling Loss Limitations Condemned at IRS Hearing
At an IRS public hearing, taxpayers and advocates strongly criticized proposed regulations that would limit the deductibility of gambling losses. The rules, which restrict how session-based losses can be offset against winnings, drew condemnation from affected individuals and industry representatives who argued the limitations are overly burdensome and inconsistent with longstanding tax treatment. Commenters contended the proposals would result in taxation on phantom income, disproportionately harming casual gamblers. The hearing reflects ongoing tension between IRS rulemaking and taxpayer fairness concerns under existing personal income tax provisions governing gambling activity.
New Section 232 Proclamation Creates Onshoring Incentives for U.S. Primary Aluminum Production
A new Section 232 proclamation introduces onshoring incentives targeting U.S. primary aluminum production, modifying existing national security-based tariff measures. The proclamation creates preferential treatment or reduced tariff rates for domestic producers as an incentive to reshore aluminum manufacturing capacity to the United States. This represents a significant customs and trade policy development with direct implications for importers, domestic manufacturers, and supply chain planners navigating Section 232 aluminum tariff obligations and compliance strategies.
South Carolina enacts “Heirs’ Property Tax Relief Act”
South Carolina has enacted the Heirs' Property Tax Relief Act, providing tax relief for property owners who hold land through heirs' property arrangements — a common situation where property passes without a formal will, leaving multiple family members as co-owners without clear title. The legislation addresses property tax challenges faced by these owners, who have historically struggled to access homestead exemptions and other tax benefits due to unclear title status. The act aims to ensure heirs' property owners can qualify for applicable property tax exemptions and relief programs, offering meaningful financial protection to affected families, often in rural and lower-income communities.
FBR excludes FTA, PTA customs concessions from 2026 tax expenditure report
Pakistan's Federal Board of Revenue (FBR) has excluded customs concessions granted under Free Trade Agreements (FTAs) and preferential trade arrangements (PTA) from its 2026 tax expenditure report. This decision affects transparency around revenue foregone through trade-related customs exemptions, raising questions about the completeness of Pakistan's tax expenditure accounting. The exclusion means that significant customs duty waivers extended to trading partners under bilateral and multilateral agreements will not be quantified or disclosed in the official report, potentially understating the true fiscal cost of Pakistan's trade concession regime.
France: Recodification of VAT into the CIBS might be postponed.
France is considering postponing the recodification of VAT rules into the new Code des Impositions sur les Biens et Services (CIBS). The CIBS project aimed to consolidate and modernize French indirect tax legislation into a single, clearer legal framework. The potential delay signals administrative and legislative challenges in completing this significant structural reform of French VAT law. Practitioners operating in France should monitor developments closely, as the timeline shift may affect compliance planning and any anticipated simplifications or changes that were expected to accompany the recodification process.
FBR imposes excise duty on e-liquids used in vapes & e-cigarettes
Pakistan's Federal Board of Revenue (FBR) has introduced federal excise duty on e-liquids used in vaping devices and e-cigarettes. The new levy targets the growing alternative tobacco products market, bringing e-liquids into the formal excise tax framework. The measure is aimed at generating additional revenue and creating regulatory parity with traditional tobacco products. This development signals a significant policy shift in how Pakistan taxes next-generation nicotine products and will directly affect manufacturers, importers, and retailers operating in the vaping sector.
PTBA raises legal concerns over fixed Tax Scheme for small shopkeepers
The Pakistan Tax Bar Association (PTBA) has raised legal objections to the government's Fixed Tax Scheme designed for small shopkeepers, questioning its constitutional and statutory validity. The PTBA's concerns center on the legal framework underpinning the scheme, including issues around equitable treatment and proper legislative authority. The association's challenge could have significant implications for the implementation of the simplified tax regime, which was introduced to bring small retailers into the tax net through a flat-rate mechanism rather than standard income tax assessment procedures.
President Trump Imposes 50% Tariffs on Certain Canadian Products Under Section 338 of the Tariff Act
President Trump has imposed 50% tariffs on certain Canadian products invoking Section 338 of the Tariff Act, a rarely used statutory authority allowing retaliatory tariffs against countries deemed to discriminate against U.S. commerce. This action marks a significant escalation in U.S.-Canada trade relations, with immediate customs and import duty implications for businesses trading across the border. Companies importing affected Canadian goods into the U.S. must reassess duty liabilities, supply chain sourcing strategies, and classification obligations under the newly imposed tariff schedule.
Alstadsæter, Johannesen, Le Guern Herry & Zucman on Transparency and Offshore Wealth
Researchers Alstadsæter, Johannesen, Le Guern Herry, and Zucman examine the impact of financial transparency measures on offshore wealth concealment. The study analyzes how automatic exchange of information and beneficial ownership registries have affected the behavior of wealthy individuals hiding assets in offshore accounts. The research provides empirical evidence on whether transparency initiatives have meaningfully reduced offshore tax evasion, offering important insights for policymakers designing anti-avoidance frameworks and international tax cooperation mechanisms. The findings carry implications for global efforts to combat illicit financial flows and improve tax compliance among high-net-worth individuals.
John Healey should cut National Insurance, not raise the personal allowance
This article argues that reducing National Insurance contributions would be a more effective and economically beneficial policy choice than raising the personal allowance in the UK. The piece examines the comparative merits of both approaches, likely addressing impacts on workers, employers, and the broader tax system. It advocates for NI cuts as the preferred mechanism for putting money back into taxpayers' pockets, challenging conventional assumptions about income tax threshold increases as the default tax relief measure.
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