Tax News Daily
The latest tax news from around the world, summarised and tagged for tax professionals. Updated twice daily.
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Gov. Ferguson Campaigns Against Initiative to Repeal Washington ‘Millionaires Tax’
Washington Governor Ferguson is actively campaigning against a ballot initiative that would repeal the state's capital gains tax on high earners, often dubbed the 'millionaires tax.' The tax targets long-term capital gains above $250,000 and has faced legal and political challenges since its enactment. Ferguson argues the repeal would harm state revenues and public services. The initiative represents a direct challenge to Washington's approach to taxing wealthy individuals, making this a significant personal income tax and state tax policy debate heading into the next election cycle.
Make the IRS an Offer It Can’t Refuse
This article discusses the IRS Offer in Compromise (OIC) program, which allows eligible taxpayers to settle their federal tax debt for less than the full amount owed. It outlines qualifying criteria including doubt as to collectibility, doubt as to liability, and effective tax administration. The piece provides practical guidance on how taxpayers and practitioners can navigate the application process, calculate reasonable collection potential, and improve acceptance odds. It also covers common pitfalls that lead to rejection and strategic considerations for timing and structuring an offer to the IRS.
Form: International Tax: UK Real Estate Investment Trusts (REIT) property income dividends — UK-Japan Double Taxation Convention
This HMRC form facilitates claims under the UK-Japan Double Taxation Convention for Japanese residents receiving property income dividends from UK Real Estate Investment Trusts (REITs). It allows eligible Japanese taxpayers to apply for relief from UK withholding tax on REIT distributions in accordance with treaty provisions. The form is part of the bilateral framework to prevent double taxation on cross-border investment income between the UK and Japan, ensuring Japanese investors in UK property markets are not taxed twice on the same income stream.
US South Dakota: New Online Tax Notices for Businesses and Remote Sellers
South Dakota has introduced new online tax notices through its ePath system targeting businesses and remote sellers. The state is leveraging digital communication to streamline tax compliance notifications, replacing or supplementing traditional paper-based notices. This development is relevant for remote sellers operating under South Dakota's economic nexus rules, established following the South Dakota v. Wayfair Supreme Court decision. Businesses with sales into South Dakota must ensure their contact and registration details are current to receive these digital notices, as failure to respond could result in compliance issues or penalties under the state's sales tax framework.
PEEC finalizes revisions to tax services independence guidance
The Professional Ethics Executive Committee (PEEC) of the AICPA has finalized revisions to its independence guidance concerning tax services. These updates clarify the boundaries and conditions under which accounting firms can provide tax services to audit clients without compromising auditor independence. The revisions address potential conflicts of interest when CPA firms simultaneously perform tax work and audit engagements for the same client. The guidance is significant for public accounting firms navigating dual-service relationships, ensuring compliance with independence standards while managing tax engagements, and reflects ongoing efforts to maintain audit integrity in the profession.
Guidance: VO BR26 compliance check for self-catering lets in Wales
This HMRC Valuation Office guidance covers compliance checks for self-catering holiday lets in Wales under the VO BR26 process. It relates to the business rates classification of short-term rental properties, determining whether they qualify as non-domestic (business rates) rather than domestic (council tax) properties based on availability and letting thresholds. While primarily a property valuation and business rates matter, it has a direct tax angle as misclassification affects whether owners pay council tax or business rates, impacting their overall tax liability and potential eligibility for small business rate relief.
Dimapur Unit Tax Department Carries Out Field Inspection Drive for GST Compliance Awareness
The Dimapur Unit Tax Department conducted a field inspection drive aimed at raising GST compliance awareness among businesses in the region. Officers visited commercial establishments to educate taxpayers on GST obligations, registration requirements, and proper invoicing practices. The initiative reflects ongoing efforts by Indian tax authorities to improve voluntary compliance at the grassroots level, particularly in smaller urban centers. The drive also served as an enforcement exercise to identify non-compliant traders and ensure businesses are fulfilling their statutory GST duties, including timely filing of returns and proper maintenance of records.
Guidance: CDS Customs Clearance Request Completion Instructions for Inventory Exports
HMRC has published completion instructions for the Customs Declaration Service (CDS) Volume 3 C21 Customs Clearance Request for inventory exports. This guidance details how businesses and agents should complete customs clearance requests when exporting goods through inventory-linked locations in the UK. It covers the data elements, codes, and procedural requirements for submitting C21 declarations via CDS, ensuring compliance with UK customs rules for inventory export movements. The instructions are relevant to freight forwarders, customs agents, and traders managing export logistics through UK ports and airports using inventory systems.
Karnataka HC Clarifies No GST on Machinery Returned to Seller for Testing Without Consideration
The Karnataka High Court has ruled that no GST is applicable on machinery returned to a seller for testing purposes when no consideration is involved in the transaction. The court clarified that such a movement of goods does not constitute a taxable supply under GST law, as the essential element of consideration is absent. This ruling provides important guidance for businesses engaged in machinery testing and repair arrangements, confirming that temporary returns to suppliers for quality checks or testing without payment do not trigger GST liability, offering relief to manufacturers and industrial buyers.
N.Y. Times: Judge Denounces Trump’s I.R.S. Suit as Improper Exercise in Self-Dealing
A federal judge has sharply criticized a lawsuit filed by the Trump administration involving the IRS, characterizing it as an improper exercise in self-dealing. The case raises significant concerns about executive branch interference with the tax agency and potential conflicts of interest. The judge's denunciation highlights tensions between the administration and independent tax enforcement, drawing scrutiny over whether the suit was pursued for improper political or personal benefit rather than legitimate legal grounds, with broader implications for IRS independence and tax administration integrity.
Taxing Smarter: Advancing Reform Through Research and Partnership
This publication from the International Centre for Tax and Development (ICTD) examines how research and institutional partnerships can drive meaningful tax reform. It explores evidence-based approaches to improving tax systems, with a focus on developing economies. The work highlights the role of collaborative research in identifying effective tax policy interventions, strengthening tax administration, and broadening the tax base. By bridging academic findings with practical policy implementation, the initiative aims to support governments in designing fairer, more efficient tax systems that can sustainably mobilize domestic revenues and support development goals.
Gujarat HC Rejects Plea Against Fake GST ITC Demand Over Misleading Submissions to the Court
The Gujarat High Court dismissed a petition challenging a GST demand related to fraudulent input tax credit (ITC) claims, citing misleading submissions made by the petitioner to the court. The HC found that the petitioner had misrepresented facts in their arguments, weakening their case against the tax authority's demand. The ruling reinforces judicial intolerance toward attempts to exploit procedural remedies through false or deceptive statements in fake ITC fraud cases. The decision underscores tax authorities' continued crackdown on bogus ITC claims, which remain a significant concern under India's GST framework.
Introducing SAP Concur and eezi, Powered by VAT IT: A Synergistic Approach to Global Expense Automation and E-Invoicing
SAP Concur has partnered with eezi and VAT IT to deliver an integrated solution combining global expense automation with e-invoicing and VAT compliance capabilities. The collaboration aims to streamline cross-border expense management by embedding VAT reclaim and e-invoicing functionality directly into the Concur platform. Businesses can automate VAT recovery on travel and entertainment expenses while ensuring compliance with country-specific e-invoicing mandates. The synergistic approach reduces manual intervention, improves data accuracy, and helps multinational companies manage indirect tax obligations more efficiently across multiple jurisdictions through a unified expense and tax technology ecosystem.
Accredited official statistics: Income Tax liabilities statistics: tax year 2023 to 2024 to tax year 2026 to 2027
Official UK government accredited statistics covering Income Tax liabilities from tax year 2023-24 through to 2026-27, published by HMRC. This release provides comprehensive data and projections on UK personal income tax liabilities over a multi-year horizon, enabling analysis of trends in tax receipts and taxpayer distribution. The statistics support government fiscal planning and public scrutiny of the UK's income tax system, offering forward-looking estimates alongside historical data for the specified tax years.
Accredited official statistics: Table 2.6 Income Tax liabilities by marginal rate of Income Tax
Official UK government statistics presenting Income Tax liabilities categorised by taxpayers' marginal rate of Income Tax. Published by HMRC as accredited official statistics, this dataset breaks down tax liabilities according to whether taxpayers fall into the basic, higher, or additional rate bands. The data provides a detailed view of the distribution of income tax burdens across marginal rate categories in the UK, serving as a critical resource for analysts and policymakers assessing the structure and progressivity of the UK personal income tax system.
Official Statistics: National Insurance contributions
UK government official statistics publication covering National Insurance contributions (NICs), including rates, thresholds, and main features for employees, employers, and the self-employed. The dataset provides historical and current NIC parameters, supporting analysis of the UK payroll tax system. This resource is relevant to tax professionals and policymakers tracking changes to NIC structures, including recent reforms such as rate adjustments and threshold freezes that affect both workers and businesses across the United Kingdom.
Accredited official statistics: Table 2.4 Shares of total Income Tax liability
UK government accredited official statistics presenting shares of total income tax liability across percentile groups of taxpayers. The dataset illustrates income distribution and the concentration of tax liability among higher earners, covering shares of income before and after tax. This resource is widely used by policymakers, researchers, and tax professionals to assess the progressivity and distributional effects of the UK personal income tax system, informing debate on fairness and the burden of taxation across different income groups.
Official Statistics: Income Tax personal allowances and reliefs
UK government official statistics publication covering income tax personal allowances and reliefs. The dataset provides historical and current data on personal allowances, age-related allowances, blind person's allowance, and various income tax reliefs available to UK taxpayers. This resource serves as a reference for policymakers, researchers, and tax professionals tracking changes to the UK personal tax system over time, including thresholds and relief amounts that directly affect individual tax liabilities.
Accredited official statistics: Table 2.5 Income Tax liabilities by income range
Official UK government statistics presenting Income Tax liabilities broken down by income range. Published by HMRC, this dataset provides accredited official statistics on how income tax burdens are distributed across different income bands among UK taxpayers. The data offers insights into the tax contributions of various income groups, supporting analysis of the UK's personal income tax system and its distributional effects. This is a key reference for researchers, policymakers, and analysts examining the structure and incidence of UK income tax liabilities across the population.
Official Statistics: Rates of Income Tax
UK government official statistics publication detailing historical and current rates of income tax in the United Kingdom. The dataset covers basic, higher, and additional rate bands, including Scottish income tax rates where applicable. This resource provides a longitudinal view of how UK income tax rates have evolved, serving as an essential reference for tax professionals, economists, and policymakers analysing the structure and progressivity of the UK personal income tax system.
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