Tax News Daily
The latest tax news from around the world, summarised and tagged for tax professionals. Updated twice daily.
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Cement industry applauds FBR action against illegal cement factory
Pakistan's cement industry has expressed support for the Federal Board of Revenue's (FBR) enforcement action against an illegal cement factory. The action highlights ongoing efforts by tax and regulatory authorities to combat tax evasion and illicit manufacturing in the sector. Illegal factories typically evade duties, sales taxes, and other levies, creating an uneven playing field for compliant manufacturers. The industry's endorsement of FBR's crackdown reflects broader concerns about revenue leakage and unfair competition, underscoring the importance of tax compliance enforcement in Pakistan's manufacturing sector.
IRS roundup: June 10 – June 21, 2026
This IRS roundup covers key developments from June 10–21, 2026, summarizing recent IRS guidance, rulings, notices, and administrative actions. The roundup likely encompasses updates on tax enforcement, compliance requirements, taxpayer obligations, and procedural matters issued by the Internal Revenue Service during this two-week period. Such roundups typically capture revenue procedures, private letter rulings, chief counsel advice, and any notable IRS announcements affecting individual and business taxpayers in the United States, providing practitioners and taxpayers with a consolidated overview of the latest federal tax developments.
The tax gap is getting worse – and by more than we thought
The article examines the UK's tax gap, which represents the difference between taxes owed and taxes actually collected by HMRC. It argues that the tax gap is worsening more significantly than official figures suggest, critically analysing HMRC's measurement methodology and highlighting concerns about underreporting. The piece raises questions about compliance enforcement effectiveness and resource allocation within HMRC. It suggests that the true scale of uncollected tax revenue poses a serious fiscal challenge for the UK government, with implications for public finances and the fairness of the tax system.
Supreme Court Tells Us What “Just Compensation” Means in a Tax Sale
The Supreme Court has issued a ruling clarifying the meaning of 'just compensation' in the context of a tax sale, addressing what property owners are entitled to receive when the government seizes and sells property for unpaid taxes. The decision has significant implications for property tax enforcement and taxpayer rights, particularly regarding whether former owners can claim surplus proceeds from tax sales. The ruling provides constitutional guidance on the Fifth Amendment takings clause as applied to tax collection proceedings.
From 4% Random Selection to 100% Audit Risk: How CRA’S AI-Driven Audits Are Changing Tax Enforcement for Canadians
The Canada Revenue Agency (CRA) has shifted from randomly selecting approximately 4% of tax returns for audit to deploying AI-driven systems capable of flagging virtually all returns for potential review. This transformation in tax enforcement uses machine learning to analyze patterns, cross-reference data sources, and identify anomalies in taxpayer filings. The change significantly raises audit risk for Canadian individuals and businesses, moving away from chance-based selection toward systematic, data-driven targeting. Tax professionals warn that the new approach demands greater accuracy and documentation in filings, as the CRA's enhanced analytical capabilities can detect inconsistencies that previously went unnoticed.
Guidance: Compliance checks: Corresponding with HMRC electronically — CC/FS83 DSC2
HMRC has issued guidance (CC/FS83 DSC2) detailing how taxpayers and agents can correspond electronically with HMRC during compliance checks. This factsheet expands on digital communication options beyond email, covering secure online channels and the protocols governing electronic exchanges in a compliance context. It is part of HMRC's compliance checks factsheet series and aims to clarify acceptable electronic communication methods, consent procedures, and data security responsibilities for taxpayers engaged in UK tax investigations or audits.
Breves reflexiones sobre los efectos del cómputo de plazos en el marco de la cooperación tributaria internacional
This article offers brief reflections on the effects of deadline computation within the framework of international tax cooperation. It examines how time limits and procedural deadlines interact with cross-border tax information exchange and mutual assistance mechanisms. The analysis considers how differing national rules on deadline calculation can affect the effectiveness and legal certainty of international tax cooperation instruments, such as exchange of information agreements and mutual administrative assistance conventions, potentially impacting taxpayer rights and tax authority obligations in cross-jurisdictional contexts.
Tax-Exempt Organizations on High Alert
Tax-exempt organizations in the United States are facing heightened scrutiny and uncertainty, prompting them to reassess their compliance posture and governance practices. The article highlights key areas of concern including potential legislative changes affecting tax-exempt status, IRS enforcement activity, and operational risks that could jeopardize exemptions. Organizations are advised to review their activities, revenue sources, and reporting obligations carefully. Leadership and boards of tax-exempt entities are urged to stay vigilant amid a shifting regulatory and political environment that may alter the landscape for nonprofits, charitable organizations, and other tax-exempt entities operating under IRC Section 501(c).
Millions of euros correction gold dealer partly undermined due to violation of defense principle
A Dutch court ruling partially overturned a multi-million euro VAT correction issued to a gold dealer, finding that tax authorities violated the defense principle — a fundamental EU legal right requiring taxpayers be given the opportunity to respond before adverse decisions are made. The court found the correction could not stand in full due to this procedural breach, highlighting the importance of due process in tax enforcement. The case underscores how procedural rights can materially affect the outcome of significant VAT assessments, even where underlying tax liability may exist.
No VAT deduction for Porsche: unpaid help to wife is not entrepreneurship
A Dutch tax case ruled that a taxpayer could not deduct VAT on a Porsche used in connection with unpaid assistance provided to his wife's business. The court determined that providing unpaid help does not constitute entrepreneurship under VAT law, meaning the individual lacked the status of a taxable person necessary to claim input VAT deductions. The ruling reinforces the principle that VAT recovery rights are strictly tied to economic activity carried out independently and for consideration, and that informal family arrangements fall outside the scope of VAT entrepreneurship.
Under the magnifying glass of the National Tax Administration. What do the statistics say about tax inspections in recent years?
This article analyzes statistics from a national tax administration — likely Poland — examining trends in tax inspections over recent years. It reviews data on the number of audits conducted, sectors targeted, amounts assessed, and enforcement outcomes. The analysis provides insight into how tax authority resources are deployed, which taxpayer segments face the highest scrutiny, and how inspection effectiveness has evolved. The findings are relevant for understanding audit risk and compliance expectations, offering a data-driven perspective on tax enforcement activity and the administration's strategic priorities.
Italy Digital Services Tax Ruling: Milan Tax Court Clarifies DST Scope for Direct Sales
A Milan Tax Court ruling has clarified the scope of Italy's Digital Services Tax (DST) as it applies to direct sales, providing important guidance ahead of 2026 compliance obligations. The decision addresses how DST applies to businesses selling directly to consumers through digital interfaces, helping companies better understand their DST exposure and reporting requirements in Italy. This ruling is significant for multinational businesses operating digital platforms or e-commerce models in the Italian market, offering clearer boundaries on what constitutes a taxable digital service under Italian DST legislation.
VAT due on partly estimated turnover after cessation of business
A court ruling confirmed that VAT remains due on turnover that was partly estimated following the cessation of a business. After the business stopped trading, tax authorities used estimation methods to determine taxable turnover for periods where records were incomplete. The court upheld the assessment, affirming that VAT obligations do not cease simply because a business has wound down, and that estimated assessments can be valid where actual figures are unavailable. The case highlights ongoing VAT liability exposure for businesses post-cessation and the legitimacy of estimation-based assessments.
Introducing the Real Estate Secrecy Index
The Tax Justice Network introduces the Real Estate Secrecy Index, a new tool measuring how effectively countries enable anonymous real estate ownership and hide beneficial ownership information. Real estate is a major vehicle for illicit financial flows, tax evasion, and money laundering, as opaque property ownership structures allow wealthy individuals and corporations to conceal assets from tax authorities. The index evaluates jurisdictions based on transparency requirements, beneficial ownership registration, and enforcement mechanisms. It aims to highlight which countries pose the greatest secrecy risks and pressure reform of property ownership disclosure rules to combat tax evasion and illicit wealth concealment globally.
Comedian Carlos Mencia Arrested for Tax Evasion, $8.7M in Unreported Income
Comedian Carlos Mencia has been arrested on tax evasion charges related to approximately $8.7 million in unreported income. The case represents a significant criminal tax controversy involving alleged deliberate failure to report substantial earnings to federal tax authorities. Mencia faces serious criminal penalties under U.S. tax law for the alleged underreporting. The case highlights the IRS's continued enforcement efforts against high-profile individuals who fail to accurately report income, serving as a reminder of the legal obligations and criminal consequences associated with tax evasion in the United States.
Overlooked in Tax Transformation: Elevating Notice Management to a Core Compliance Control
The article argues that notice management is frequently overlooked in tax transformation initiatives despite being a critical compliance control. It highlights how tax departments often rely on ad hoc processes to handle government notices, creating risk exposure. The piece advocates for elevating notice management through systematic workflows, clear ownership, and technology integration. Proper notice tracking can prevent penalties, interest, and audit escalation. The author positions notice management as a foundational element of tax operational excellence, urging organizations to treat it with the same rigor applied to return filing, provision, and other core tax processes during digital transformation efforts.
Justices Won't Review Dispute Over Tax Fraud Deadline
The US Supreme Court declined to review a dispute concerning the statute of limitations applicable to tax fraud cases. The case centered on when the clock starts running for the IRS to bring tax fraud claims, a critical procedural question affecting taxpayer rights and government enforcement powers. The justices' refusal to hear the appeal leaves in place the lower court ruling, which has implications for how tax fraud deadlines are interpreted and applied. The decision impacts both taxpayers facing potential fraud allegations and the IRS's ability to pursue long-running investigations beyond standard limitation periods.
No Need For Promises That $1.8B Fund Is Dead, DOJ Says
The US Department of Justice stated there is no need for formal assurances that a $1.8 billion fund has been dissolved or is no longer active, in the context of an ongoing legal or enforcement matter. The DOJ's position suggests the fund's termination is sufficiently established without additional promises or guarantees. While the article appears in a tax law context, the specific tax angle involves potential enforcement action, fraud, or dispute resolution tied to the fund, with DOJ signaling confidence in the evidentiary record supporting the fund's inactive status without requiring further commitments from involved parties.
Advance Tax Certainty Service
HMRC has published internal manual guidance on its Advance Tax Certainty Service, a facility allowing businesses to seek certainty on their tax position before transactions or arrangements are undertaken. The service aims to reduce tax controversy by providing taxpayers with formal advance clearances or rulings from HMRC. This is particularly relevant for large or complex businesses seeking to manage tax risk and avoid future disputes. The guidance outlines eligibility, the application process, and the scope of certainty that can be obtained, making it a significant development in UK tax administration and dispute prevention.
Comments on T-444/25 (Cavert) – General Court Rules VAT Groups Are Not Single Legal Entities
The EU General Court ruled in case T-444/25 (Cavert) that VAT groups do not constitute single legal entities for VAT purposes. The judgment clarifies that while VAT groups are treated as a single taxable person for VAT transactions, individual members retain their separate legal identities. This has significant implications for how VAT group members interact with third parties and tax authorities, particularly regarding liability, invoicing obligations, and procedural rights. The ruling provides important guidance for businesses operating within VAT group structures across EU member states and may require reassessment of existing VAT group arrangements.
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