Tax News Daily
The latest tax news from around the world, summarised and tagged for tax professionals. Updated twice daily.
Tax Head
Region
Taxpayer Advocate Tells Congress About IRS Hits and Misses This Tax Season in New Report
The Taxpayer Advocate Service has submitted its mid-year report to Congress evaluating IRS performance during the 2026 tax season. The report highlights both successes and shortcomings in IRS operations, including filing processing times, customer service metrics, and taxpayer assistance. The Taxpayer Advocate, an independent voice within the IRS, uses such reports to push for legislative and administrative improvements that better serve taxpayers. The findings carry weight for ongoing debates around IRS funding, staffing, and modernization efforts, making it a significant touchpoint for personal income tax administration and tax policy discussions at the federal level.
These 10 States Might Have a Tax Identity Theft Problem
A new analysis identifies ten U.S. states that may be particularly vulnerable to tax identity theft, a growing problem where fraudsters file false tax returns using stolen personal information to claim refunds. The report points to weaknesses in state-level identity verification systems and refund fraud detection mechanisms. Tax identity theft burdens legitimate taxpayers with delayed refunds and complex resolution processes. The findings underscore the need for stronger authentication protocols and inter-agency data sharing at the state level. This issue sits at the intersection of personal income tax administration and taxpayer protection, highlighting ongoing challenges for state revenue agencies.
Supreme Court lets stand IRS power to assess tax anytime for preparer fraud
The U.S. Supreme Court has declined to disturb a ruling upholding the IRS's authority to assess taxes at any time when preparer fraud is involved. The case reinforces that the standard statute of limitations on tax assessments does not apply where a tax return preparer engaged in fraudulent conduct. This decision has significant implications for taxpayers who relied on fraudulent preparers, as it removes the usual time-bar protection and exposes them to unlimited assessment periods. The ruling underscores the serious consequences of preparer fraud and reinforces IRS enforcement powers in cases involving misconduct by tax professionals.
Webinar: The First Anniversary of OB3: Examining Implementation and the Impact of the 2025 Tax Bill – July 23, 2026
A webinar hosted by the National Tax Association marking the first anniversary of OB3 (One Big Beautiful Bill), examining its implementation and the impact of the 2025 Tax Bill. The session, scheduled for July 23, 2026, will analyze how the landmark US tax legislation has been applied in practice since enactment, reviewing regulatory guidance, compliance challenges, and broader economic effects. The 2025 Tax Bill represents significant changes to the US tax code, and this anniversary review provides practitioners, academics, and policymakers an opportunity to assess real-world outcomes against legislative intent.
Clouse et al.: California’s Billionaire Tax Act Threatens Growth and Fails to Address Structural Deficits
Academics critique California's proposed Billionaire Tax Act, arguing it threatens economic growth and fails to resolve the state's structural fiscal deficits. The analysis suggests that targeting ultra-high-net-worth individuals with wealth-based taxation risks capital flight, as billionaires may relocate assets or residency to avoid the levy. The authors contend the act addresses symptoms rather than California's underlying spending and revenue imbalances. The piece raises broader questions about the viability and design of wealth taxes at the state level, including constitutional concerns and enforcement challenges around unrealized gains taxation.
Guidance: Tax-free savings newsletter 22
HMRC's Tax-Free Savings Newsletter 22 provides updates for managers and administrators of tax-advantaged savings products, principally ISAs (Individual Savings Accounts) and related vehicles in the UK. These newsletters communicate regulatory changes, administrative guidance, and compliance requirements governing how tax-free savings schemes operate. As ISAs and similar products provide exemptions from income tax and capital gains tax on savings and investment returns, the newsletter is directly relevant to personal income tax policy and the administration of tax relief for savers.
Tax Relief up to 12 Lakh in New Tax Regime, Yet ITR Filing is Still Mandatory
Under India's new tax regime, individuals with income up to ₹12 lakh receive full tax relief via rebate under Section 87A, resulting in zero tax liability. However, this exemption from tax payment does not waive the obligation to file an Income Tax Return (ITR). The article clarifies that ITR filing remains mandatory for those whose gross income exceeds the basic exemption threshold, regardless of nil tax payable. Taxpayers must still report income, claim deductions, and comply with filing requirements for AY 2026-27 to avoid penalties and maintain compliance under Indian income tax law.
11 Situations Where Filing ITR Is Mandatory for AY 2026-27
The article outlines 11 specific situations where filing an Income Tax Return (ITR) is mandatory in India for Assessment Year 2026-27, irrespective of whether tax is payable. These include cases where gross income exceeds the basic exemption limit, individuals with foreign assets or signing authority in foreign accounts, those claiming treaty benefits, taxpayers with high electricity or travel expenditure, and business owners with turnover above prescribed thresholds. The piece emphasizes that mandatory filing applies even under the new tax regime where rebates may eliminate actual tax liability, reinforcing compliance obligations under Indian income tax law.
ITAT Quashes Reassessment as Section 151 Approval Was Not Obtained from Competent Authority
India's Income Tax Appellate Tribunal (ITAT) quashed a reassessment proceeding on the grounds that the required sanction under Section 151 of the Income Tax Act was not obtained from the competent authority. The case highlights the mandatory procedural requirement for obtaining prior approval before initiating reassessment, and the consequences of bypassing the correct sanctioning authority. The ruling reinforces taxpayer protections against improper reassessment and serves as an important precedent on jurisdictional compliance in Indian income tax enforcement.
Section 80P Deduction Allowed on Interest Income Attributable to Credit Society’s Business
An Indian tribunal has allowed a deduction under Section 80P of the Income Tax Act on interest income earned by a credit cooperative society, ruling that such income is attributable to the society's core business activities. Section 80P provides deductions for income of cooperative societies engaged in specified activities. The decision clarifies the scope of the deduction for interest income, distinguishing between income integral to cooperative business operations and passive investment income, offering relief to credit societies facing similar tax disputes.
Bangalore ITAT Upholds Section 11 Exemption Despite Alleged Capitation Fee Collections
The Bangalore bench of India's Income Tax Appellate Tribunal upheld the Section 11 income tax exemption for a charitable or educational institution despite tax department allegations that the entity collected capitation fees, which are illegal in India. The ITAT found insufficient evidence to substantiate the capitation fee claims and ruled that the institution's charitable status and tax exemption remained valid. The ruling is significant for educational trusts and institutions facing scrutiny over fee structures and their eligibility for tax-exempt status under Indian income tax law.
ITAT Quashes Reassessment as Section 151 Approval Was Granted by Wrong Authority
India's Income Tax Appellate Tribunal quashed a reassessment order after finding that the mandatory sanction under Section 151 of the Income Tax Act was granted by the wrong authority. The ruling underscores the strict procedural requirements governing reassessment proceedings, emphasising that approval must come from the specifically designated competent authority. This decision builds on similar jurisprudence protecting taxpayers from procedurally defective reassessments and serves as a key precedent for challenging reassessment notices where sanctioning authority requirements have not been properly followed.
Non-Resident Tax Status Requires Careful Planning
This article addresses the tax planning considerations required for South Africans seeking non-resident tax status. It likely covers the criteria SARS uses to determine tax residency, the steps individuals must take to formally cease South African tax residency, and the implications for ongoing tax obligations. Careful planning is essential to avoid unintended tax liabilities, particularly around exit taxes, foreign income, and compliance with SARS requirements. The article underscores that non-resident status is not automatic and requires deliberate structuring and documentation to be recognised by South African tax authorities.
Why Starting a Tax-Free Savings Account Early Matters
This article highlights the benefits of starting a Tax-Free Savings Account (TFSA) early in South Africa. TFSAs allow individuals to invest up to an annual limit without paying tax on interest, dividends, or capital gains earned within the account. The compounding effect over time makes early contributions particularly advantageous. The article likely outlines the contribution limits, eligible investment types, and the long-term wealth-building potential of TFSAs, encouraging South Africans to maximise this tax-efficient savings vehicle as part of their broader personal financial and retirement planning strategy.
Non-Resident Claims Face Increased SARS Scrutiny
This article reports on increased scrutiny by SARS (South African Revenue Service) of non-resident tax claims. As more South Africans emigrate or work abroad, SARS has intensified its examination of individuals claiming non-resident status to ensure compliance with residency rules. The article likely covers audit triggers, documentation requirements, and the risks of incorrectly claiming non-resident status. It serves as a warning to taxpayers and advisers that SARS is actively challenging questionable claims, with potential penalties and back-taxes for those who fail to meet the legal criteria for non-residency.
22% tax on ISA cash interest – HMRC closes the loophole
HMRC has moved to close a loophole that allowed certain ISA (Individual Savings Account) cash interest to be taxed at only 22%, rather than the standard rates applicable to savings income. ISAs are typically tax-free wrappers for UK savers, but a technical gap had enabled some cash interest to benefit from a reduced effective tax rate. HMRC's action targets this anomaly to ensure consistent treatment of savings income and protect tax revenues. The measure reinforces the integrity of the ISA regime while affecting savers who had been exploiting the discrepancy, with implications for personal tax planning strategies in the UK.
Pakistan implements revised income tax slabs from July 1, 2026
Pakistan has implemented revised income tax slabs effective July 1, 2026, marking a significant update to the country's personal income tax structure. The new slabs reflect adjustments aimed at broadening the tax base and revising rates across income brackets. This change is part of Pakistan's ongoing fiscal reforms to improve revenue collection and align the tax system with economic conditions. The revised structure impacts salaried and non-salaried individuals, with implications for withholding tax calculations by employers and overall compliance requirements for taxpayers across different income levels.
Taxfyle Launches Plan, an AI-Native Tax Strategy Platform Built to Streamline RIA Tax Planning Workflow
Taxfyle has launched Plan, an AI-native tax strategy platform designed to streamline tax planning workflows for Registered Investment Advisors (RIAs). The platform aims to automate and enhance tax planning processes, enabling RIAs to deliver more efficient and comprehensive tax strategies to their clients. By integrating AI capabilities, Plan seeks to reduce manual effort in tax workflow management, improve accuracy, and allow financial advisors to scale their tax planning services. The tool represents a growing trend of AI-driven solutions targeting the intersection of financial advisory and tax compliance for wealth management professionals.
California Billionaire Tax Qualifies for November Ballot
A California ballot initiative targeting billionaires has qualified for the November election. The measure would impose a new tax on ultra-high-net-worth individuals in California, reflecting ongoing state-level efforts to increase tax burdens on the wealthiest residents. This follows broader national and global conversations around wealth taxes and redistribution. If passed, it would represent a significant shift in California's personal income tax landscape, potentially affecting billionaires' residency decisions and investment behavior. The initiative underscores California's history of progressive tax experimentation and adds to the debate over whether wealth taxes are economically effective and constitutionally viable.
UK Seeks To Restore Capital Gains Deferrals For Share Gifts
The UK government is seeking to restore capital gains tax deferral relief for gifts of shares, a provision that had been curtailed. The consultation targets holdover relief rules that allow individuals gifting shares in qualifying businesses to defer CGT liabilities, passing the gain to the recipient. The proposed restoration aims to support business succession and entrepreneurship by reducing the immediate tax burden on share transfers. HMRC is gathering stakeholder views on the scope, conditions, and potential anti-avoidance measures associated with reinstating this relief within the personal capital gains tax framework.
Get the Friday Digest
Every Friday, a curated summary of the week's tax news delivered to your inbox. Choose what you want to hear about — no noise, no spam, unsubscribe anytime.
Tax heads you care about(select all that apply)
Regions you care about(select all that apply)
Your email is never shared or sold. You can unsubscribe at any time. Built in compliance with GDPR.