Tax News Daily
The latest tax news from around the world, summarised and tagged for tax professionals. Updated twice daily.
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IRS Sets Introductory Guidelines on AI Use for Tax Professionals
The IRS has issued introductory guidelines governing the use of artificial intelligence tools by tax professionals. The guidance addresses responsible AI adoption in tax practice, covering areas such as data privacy, accuracy obligations, and professional accountability when leveraging AI-assisted tax preparation and advisory services. The IRS emphasizes that professionals remain responsible for AI-generated outputs and must apply appropriate due diligence. The guidelines aim to provide a framework as AI tools become more prevalent in tax compliance and planning workflows, signaling the agency's intent to develop more comprehensive standards going forward.
Uncapping the Payroll Tax Would Be the Largest Tax Increase in Decades—and Still Wouldn’t Save Social Security
The Tax Foundation examines a proposal to remove the payroll tax cap on Social Security contributions, warning it would constitute one of the largest tax increases in modern U.S. history. Currently, earnings above approximately $168,600 are exempt from the Social Security payroll tax. Uncapping this would significantly raise taxes on higher earners but analysis suggests it still would not fully resolve Social Security's long-term funding shortfall. The piece critiques the proposal's effectiveness and economic impact, highlighting that structural reforms beyond revenue increases are needed to ensure the program's solvency over the coming decades.
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.
America’s 250th: The Evolution of Excise Taxes
As the United States marks its 250th anniversary, the Tax Foundation traces the historical evolution of excise taxes from the nation's founding to the present day. The piece examines how excise taxes on goods such as alcohol, tobacco, and fuel have been used throughout American history as both revenue-raising tools and instruments of policy. It explores landmark moments including early whiskey taxes that sparked rebellion, wartime revenue measures, and modern sin taxes. The article contextualizes how excise tax design and philosophy have shifted over 250 years, reflecting changing economic priorities and governance approaches.
Taxing AI Data Centers: Incentives, Sales Tax, and Expanding Revenue Regimes
This article examines the tax landscape surrounding AI data centers, covering three key dimensions: government incentive programs designed to attract data center investment, sales tax considerations on equipment and energy consumption, and the expansion of revenue-based tax regimes targeting digital infrastructure. As AI infrastructure investment surges globally, jurisdictions are balancing competitive tax incentives against growing pressure to capture tax revenues from the sector. The piece highlights how sales tax exemptions, property tax abatements, and evolving digital services tax frameworks are shaping data center location and investment decisions.
Norway Introduces New VAT Rules for Cross-Border Services in MLEs
Norway has introduced new VAT rules specifically targeting cross-border services supplied within multi-lateral enterprises (MLEs). The changes address how VAT applies when services flow across borders within complex organizational structures, aiming to close gaps where cross-border intra-group services may have escaped Norwegian VAT. The new rules are designed to ensure that foreign entities providing services to Norwegian entities within MLEs are properly captured within the VAT regime. This development reflects broader Nordic efforts to tighten VAT compliance on international service flows and has direct relevance for multinational groups with Norwegian operations.
COUNTERPOINT: Social Security Should Not Be Privatized
This opinion piece argues against privatizing Social Security, contending that the current public system provides reliable, guaranteed benefits that private accounts cannot match. The author highlights risks including market volatility, inadequate retirement savings behavior, and the potential elimination of disability and survivor benefits. From a tax angle, Social Security privatization carries significant payroll tax implications — redirecting payroll contributions to private accounts would undermine the payroll tax funding mechanism, potentially requiring alternative tax revenue or benefit cuts to cover existing obligations.
POINT: Recipe to Convert to a Private Social Security System
This opinion piece outlines a framework for converting the U.S. Social Security system into a private savings model, proposing that payroll tax contributions be redirected into individually owned investment accounts. The author argues this would generate better long-term returns than the current pay-as-you-go structure. The proposal has direct payroll tax implications, as it would fundamentally restructure how Social Security contributions are collected and allocated, raising questions about transition funding, existing beneficiary obligations, and the future role of payroll taxes in financing retirement benefits.
Govt abolished Super Tax for major export-oriented companies
The Pakistani government has abolished the Super Tax for major export-oriented companies, a significant policy shift aimed at boosting the country's export sector competitiveness. The Super Tax, which had been levied on large corporations, was seen as a burden on export-driven industries. By removing this additional tax layer, the government signals its intent to incentivize export growth and improve the business environment for key industrial sectors. This move is expected to reduce the overall corporate tax burden on qualifying companies and may influence foreign investment decisions in Pakistan's export-oriented manufacturing and services industries.
Tax Law Center: How Congress Should Quickly Block the President’s Get-out-of-Tax-Free Card
The Tax Law Center analyzes how Congress could act to block presidential use of executive power to grant tax exemptions or pardons effectively functioning as tax relief. The article examines the legal and legislative mechanisms available to prevent what the authors characterize as an improper executive workaround of tax obligations. It focuses on the constitutional and statutory boundaries of presidential authority in the tax context and urges swift congressional action to close potential loopholes that could allow individuals to escape tax liability through executive action.
UK legislation
This UK government page outlines the domestic legislation underpinning customs and tax reliefs for goods used at international events. It references relevant UK law governing temporary admission, duty suspensions, and related customs procedures following Brexit. The page serves as a legislative reference for businesses and customs agents seeking to understand the statutory basis for claiming reliefs when importing or exporting goods for international events under the UK's post-EU customs framework administered through HMRC and the Customs Declaration Service.
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.
Failing to Renew the USMCA Would Increase Tariff Uncertainty and Harm Americans
The article examines the consequences of failing to renew the United States-Mexico-Canada Agreement (USMCA), arguing that non-renewal would significantly increase tariff uncertainty and harm American consumers, businesses, and the broader economy. The USMCA governs trade relationships between the three North American nations, and its expiration without renewal would revert trade conditions to less favorable terms, raising effective tariff rates on goods crossing borders. The piece highlights how increased tariffs function as a tax burden on Americans, disrupting supply chains, raising consumer prices, and undermining business investment planning across key industries reliant on North American trade flows.
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.
UK Aims To Modernize Tax Framework For Distributions
The UK government is consulting on modernizing its tax framework governing corporate distributions, aiming to simplify and update rules that determine how companies distribute profits to shareholders. The initiative seeks to address outdated legislation, reduce complexity, and ensure the framework reflects contemporary business structures. HMRC and HM Treasury are inviting stakeholder input on potential reforms, which could affect dividend taxation, distribution definitions, and related corporate tax treatment. The modernization effort is part of broader UK tax simplification objectives and could have significant implications for corporate planning and shareholder returns.
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.
El CIAT participó en la 30.ª Asamblea General de la IOTA en Hungría
CIAT (Inter-American Center of Tax Administrations) participated in the 30th General Assembly of IOTA (Intra-European Organisation of Tax Administrations) held in Hungary. The event brought together tax administration representatives from multiple countries to discuss cooperation, best practices, and shared challenges in tax administration. CIAT's participation underscores ongoing efforts to strengthen international collaboration between tax bodies across different regions, fostering dialogue between Latin American and European tax authorities on common administrative and policy issues.
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