Tax News Daily
The latest tax news from around the world, summarised and tagged for tax professionals. Updated twice daily.
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Taxing Data Processing Doesn’t Just Tax Big Tech
This Tax Foundation analysis examines proposals to tax data processing services, arguing that such levies extend far beyond large technology companies and would broadly impact businesses across all sectors that rely on data processing. The piece highlights that data processing taxes, often framed as targeting Big Tech firms, would affect a wide range of industries including financial services, healthcare, and retail. The analysis raises concerns about economic distortion and unintended consequences, positioning the discussion within the broader debate over digital services taxes and how policymakers should think carefully about the true incidence of taxing data-related activities.
What’s next for the UAE’s e-invoicing mandate?
This article examines the upcoming developments in the UAE's e-invoicing mandate, detailing the regulatory roadmap, implementation timelines, and compliance requirements for businesses operating in the UAE. As the UAE progresses with its e-invoicing framework, this piece likely addresses technical specifications, phased rollout plans, and what companies need to do to prepare. It is highly relevant for tax and finance teams managing indirect tax compliance in the UAE, offering practical guidance on meeting the mandate's requirements.
SC rejects FBR bid to impose 35pc tax on dividend income
Pakistan's Supreme Court has rejected the Federal Board of Revenue's attempt to impose a 35% tax on dividend income. The ruling represents a significant tax controversy outcome, blocking FBR's bid to apply the higher rate to dividends. The decision has direct implications for corporate and individual investors receiving dividend income in Pakistan, limiting the tax authority's ability to enforce the elevated rate. This ruling constrains FBR's revenue collection efforts and provides taxpayer relief, setting a judicial precedent on the permissible taxation of dividend income under Pakistani tax law.
Insolvency (VAT Notice 700/56)
HMRC's VAT Notice 700/56 provides detailed guidance on VAT obligations and procedures in insolvency situations across different insolvency types, including administration, liquidation, and receivership. It covers the VAT registration requirements for insolvency practitioners, treatment of VAT on pre- and post-appointment supplies, handling of VAT refunds and liabilities, and the responsibilities of insolvency practitioners when dealing with HMRC. The notice addresses practical matters such as VAT return filing obligations, the treatment of assets realised during insolvency, and how input tax recovery applies in these circumstances. This serves as a key technical reference for practitioners managing insolvent entities in the UK.
California Is About to Tax SaaS. Here Is What Changes on 1 January 2027
California is set to impose sales tax on Software as a Service (SaaS) starting January 1, 2027, marking a significant shift in how digital software services are taxed in the state. The change will require SaaS providers selling to California customers to collect and remit sales tax, bringing cloud-based software in line with how traditional software has been taxed. Businesses currently providing SaaS products will need to reassess their pricing, billing systems, and compliance obligations ahead of the deadline. The move reflects a broader trend among US states seeking to modernize sales tax rules to capture revenue from the growing digital economy.
Tax advisers: one month left to register under new rules
UK tax advisers have one month remaining to register under new regulatory rules introduced by HMRC. The requirement marks a significant shift in oversight of the tax advice profession, aiming to improve standards and accountability among those who charge for tax services. Advisers who fail to register risk penalties and may be prohibited from practising. The initiative is part of broader UK government efforts to clamp down on promoters of tax avoidance schemes and raise the quality bar for tax professionals. Practitioners are urged to act promptly to ensure compliance before the registration deadline expires.
Andy Burnham as Prime Minister – What Could It Mean for Tax?
This article speculates on the potential tax policy implications if Andy Burnham, current Mayor of Greater Manchester, were to become UK Prime Minister. It explores his known political positions and what changes he might pursue across areas such as wealth taxation, income tax, and business levies. The piece is a forward-looking analysis aimed at tax practitioners and businesses wanting to anticipate possible shifts in the UK tax landscape under alternative Labour leadership, drawing on Burnham's public statements and track record in regional government.
No GST Demand Order Within Deadline: Delhi High Court Quashes ADT-03 Audit Notice and DRC-01
The Delhi High Court quashed a GST audit notice (ADT-03) and demand notice (DRC-01) issued against a taxpayer after the statutory deadline for issuing a demand order had expired. The court ruled that tax authorities cannot initiate or continue audit and demand proceedings once the limitation period for passing a final demand order has lapsed. This ruling reinforces taxpayer protections under GST procedural law, clarifying that procedural notices issued beyond permissible timeframes are legally invalid and unenforceable.
Herzfeld: Mocking Up the Digital Services Tax War Games
Mindy Herzfeld analyzes the ongoing geopolitical tensions surrounding digital services taxes (DSTs), examining how countries imposing DSTs on large technology companies face retaliatory trade measures from the United States. The piece explores strategic scenarios and negotiating dynamics between the US and DST-imposing nations, considering how the interplay of trade policy and tax policy shapes outcomes. It provides practitioners and policymakers with a framework for understanding the escalating 'war games' around DSTs, including potential resolutions and the broader implications for international tax reform efforts under Pillar One and Two discussions.
Belgium: What the new 2028 e-reporting mandate means
Belgium is introducing an e-reporting mandate set to take effect in 2028, marking a significant shift in how businesses must report transactional data to tax authorities. The mandate builds on Belgium's existing structured e-invoicing requirements and will require companies to submit digital transaction data in real or near-real time. Practitioners and businesses operating in Belgium need to assess system readiness, ERP configurations, and compliance workflows well ahead of the deadline. The development aligns with broader EU digital reporting obligations and reflects growing momentum across member states toward continuous transaction controls and structured data submission frameworks.
France extends audit retention period from six to ten years
France has extended the audit retention period for tax records from six to ten years. This regulatory change significantly impacts businesses operating in France, requiring them to retain financial and tax documentation for a longer period to comply with French tax authority requirements. The extension has implications for corporate record-keeping obligations, audit preparedness, and data storage strategies for companies subject to French tax jurisdiction. Practitioners and businesses will need to update their document retention policies accordingly to ensure compliance with the new ten-year requirement.
Portugal Overhauls the Periodic VAT Return: New Fields for VAT Groups, Pre-Filled Data
Portugal has overhauled its periodic VAT return form, introducing new fields to accommodate VAT groups and incorporating pre-filled data functionality. The changes modernise the VAT compliance process for Portuguese taxpayers, with VAT group reporting now formally integrated into the standard return structure. Pre-filled data aims to reduce errors and administrative burden by auto-populating known figures. This update represents a significant structural change to VAT compliance obligations in Portugal, affecting businesses filing periodic returns and those operating within VAT group arrangements. Practitioners advising Portuguese clients will need to familiarise themselves with the revised form fields and updated submission requirements.
Calcutta HC: GST Order U/S 73 Remains Valid If Digitally Signed on or Before the Limitation Deadline
The Calcutta High Court held that a GST demand order issued under Section 73 remains legally valid if it is digitally signed on or before the limitation deadline, even if it is uploaded or communicated to the taxpayer afterward. The ruling clarifies the point at which a GST order is considered 'passed' for limitation purposes, providing important guidance on digital signing procedures and statutory time limits. This decision has significant implications for tax authorities and taxpayers in disputes involving timing of order issuance under GST law.
OECD Chapter VII Consultation: Is Cost Plus 5% Still Defensible for Headquarters Services?
The OECD's ongoing consultation on Chapter VII of the Transfer Pricing Guidelines is prompting fresh scrutiny of the cost plus 5% markup traditionally used for intragroup headquarters services. This article examines whether this longstanding benchmark remains defensible under evolving arm's length standards, particularly as tax authorities increasingly challenge low-value service arrangements. It explores the tension between administrative simplicity and accurate pricing, the role of benefit tests, and how multinationals should reassess their intercompany service documentation strategies in light of potential guideline revisions emerging from the OECD consultation process.
Draft legislation: Better use of new and improved third-party data
HMRC has published draft legislation aimed at improving the use of new and enhanced third-party data for tax compliance purposes. The proposals would expand HMRC's data-gathering powers, requiring third parties such as financial institutions, employers, and platforms to provide additional taxpayer information. This development has significant implications for personal and payroll tax administration, potentially enabling more accurate pre-population of tax returns and better detection of non-compliance. Practitioners should assess how clients' reporting obligations may change and prepare for increased data-sharing requirements under the updated framework.
Section 153C Cannot Be Invoked Mechanically: ITAT Jaipur Quashes Proceedings for Lack of Independent Satisfaction
The Income Tax Appellate Tribunal (ITAT) Jaipur has quashed proceedings initiated under Section 153C of the Income Tax Act, ruling that the provision cannot be invoked mechanically. The tribunal held that the Assessing Officer must record independent satisfaction before initiating proceedings against a person other than the searched person. The ruling reinforces that satisfaction notes must demonstrate a genuine application of mind to the seized material and its relevance to the third party, rather than being a mere formality. This decision provides important procedural protection for taxpayers facing search-related assessments and clarifies the evidentiary threshold required for valid Section 153C proceedings.
Madras HC: Bank Account Under GST Section 83 Can’t Be Sustained Without Tangible Material
The Madras High Court ruled that a bank account attachment under GST Section 83 cannot be sustained without tangible material evidence. The court held that provisional attachment of a taxpayer's bank account requires concrete, substantive grounds and cannot be based on mere suspicion or without proper justification. This ruling strengthens taxpayer protections against arbitrary provisional attachments by tax authorities during pending proceedings, reinforcing that Section 83 powers must be exercised judiciously and only when supported by credible, tangible material demonstrating a genuine risk to revenue recovery.
France Updates E-Invoicing Standards and Reconfirms September 2026 Launch
France has updated its e-invoicing technical standards and reconfirmed the September 2026 launch date for its mandatory B2B e-invoicing regime. The update provides clarity for businesses and software providers preparing for compliance with the Portail Public de Facturation (PPF) and Partner Dematerialization Platform (PDP) framework. This reconfirmation follows previous delays and gives practitioners a firm deadline to align their systems. French businesses must ensure their invoicing infrastructure meets the updated specifications ahead of the mandate, making this a significant regulatory development for VAT compliance and digital reporting obligations across France.
One House Sold… Two Houses Bought! Will Section 54 Still Save Your Tax?
This article examines whether Indian taxpayers can claim capital gains tax exemption under Section 54 of the Income Tax Act when they sell one residential property and purchase two separate houses with the proceeds. Section 54 traditionally allows exemption on long-term capital gains from residential property sales if the proceeds are reinvested in one new residential house. The article analyses judicial interpretations and amendments that have evolved the provision, including the 2019 amendment permitting investment in two houses under certain conditions, exploring eligibility criteria, monetary limits, and practical planning considerations for taxpayers seeking to maximise their exemption.
Slovenia: VAT group guidance updated for e-invoicing and import VAT
Slovenia has updated its VAT group guidance to address e-invoicing requirements and import VAT treatment. The update provides clarification for businesses operating within VAT groups on how e-invoicing obligations apply at the group level and how import VAT is handled among group members. This regulatory development is significant for companies structured as VAT groups in Slovenia, as it aligns existing VAT group rules with the country's evolving e-invoicing framework, ensuring compliance clarity for both domestic transactions and cross-border imports processed through the group structure.
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