Tax News Daily
The latest tax news from around the world, summarised and tagged for tax professionals. Updated twice daily.
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2nd Circ. Won't Let Man Reverse Tax Plea Over Bad Advice
The Second Circuit Court of Appeals denied a defendant's attempt to withdraw his tax-related guilty plea, rejecting his claim that he received ineffective legal counsel. The man argued that bad advice from his attorney induced him to plead guilty to tax charges he otherwise would have contested at trial. The appellate court upheld the lower court's ruling, finding insufficient grounds to reverse the plea. The case highlights the high legal bar defendants face when seeking to undo tax crime convictions based on ineffective assistance of counsel claims in federal court.
Justices' Penalty Ruling Won't Sink Tax Case, 5th Circ. Told
A case before the Fifth Circuit involves arguments that a recent Supreme Court ruling on penalties should not derail an ongoing tax dispute. The government contends that the justices' penalty decision does not undermine the tax case at hand, suggesting the legal standards and findings remain intact despite the broader ruling. This appellate proceeding highlights the intersection of penalty jurisprudence and tax enforcement, with potential implications for how courts apply Supreme Court precedent to pending tax controversies in lower courts.
Karachi jewellers announce strike call over FBR actions
Karachi jewellers have announced a strike in response to actions taken by Pakistan's Federal Board of Revenue (FBR). The protest reflects growing tensions between the jewellery trade sector and tax authorities, likely stemming from enforcement measures such as raids, documentation requirements, or tax compliance drives targeting the sector. The strike signals significant resistance from traders to FBR's efforts to bring the informal jewellery market into the tax net, a recurring challenge for Pakistani tax authorities seeking to broaden the revenue base and improve compliance in traditionally cash-heavy, underdocumented industries.
US_Illinois Sales Tax: Remote Retailer Tax Amnesty Program 2026
Illinois is introducing a Remote Retailer Tax Amnesty Program in 2026, targeting out-of-state sellers with sales tax obligations in the state. The program offers remote retailers an opportunity to come into compliance with Illinois sales tax requirements without facing penalties or back-tax liabilities from prior periods. This initiative follows Illinois' economic nexus rules established after the South Dakota v. Wayfair Supreme Court decision, which extended sales tax collection obligations to remote sellers meeting certain thresholds. The amnesty program provides a limited window for non-compliant remote retailers to voluntarily register, file, and remit outstanding sales tax obligations.
Enquiry Manual
HMRC's Enquiry Manual provides comprehensive guidance for tax professionals on how HMRC conducts enquiries into tax returns and taxpayer affairs. The manual covers the legal framework governing HMRC's investigation powers, procedural requirements, and the rights and obligations of both HMRC officers and taxpayers during enquiry processes. It addresses opening enquiries, information and inspection powers, penalties, settlements, and appeals. This resource is essential for practitioners advising clients under HMRC investigation, offering detailed insight into HMRC's internal approach to compliance checks across various tax regimes including income tax, corporation tax, and VAT.
Check genuine HMRC contact that uses more than one communication method
HMRC provides guidance to help taxpayers verify the authenticity of official communications that use multiple contact methods, such as letters followed by phone calls or emails. As part of efforts to combat tax-related fraud and phishing, HMRC maintains a published list of genuine contact campaigns and check services. Taxpayers can cross-reference received communications against this list to confirm legitimacy. This guidance is relevant to tax compliance and anti-fraud measures, helping individuals and businesses avoid scams impersonating HMRC for tax collection or refund purposes.
The Voluntary Disclosures Program: Your second chance to set things right
The Canada Revenue Agency (CRA) highlights its Voluntary Disclosures Program (VDP), which allows taxpayers to come forward and correct previously inaccurate or incomplete tax information without facing penalties or prosecution. The program covers a range of tax obligations including income tax, GST/HST, payroll deductions, and information returns. To qualify, disclosures must be voluntary, complete, involve a potential penalty, and relate to information at least one year overdue. Two tracks exist: the General Program and the Limited Program for intentional non-compliance. Taxpayers must pay estimated taxes owed when applying. The VDP offers relief from penalties and potential prosecution, giving non-compliant taxpayers a structured pathway to regularize their tax affairs.
Trump Calls Ex-Judges' Bid To Reopen IRS Case 'Baseless'
Former judges are seeking to reopen an IRS-related case, a bid that the Trump administration has characterized as baseless. The dispute involves a tax controversy before the IRS, with the ex-judges attempting to intervene or revive proceedings that had previously been closed. The Trump administration is contesting this effort, arguing there is no legal basis for reopening the matter. The case highlights ongoing litigation surrounding IRS enforcement actions and the procedural avenues available to challenge or revisit concluded tax disputes, underscoring broader tensions in tax controversy and enforcement at the federal level.
Check if a text message you've received from HMRC is genuine
HMRC provides guidance to help UK taxpayers verify whether text messages purportedly from HMRC are genuine. The page lists current and recent legitimate HMRC SMS campaigns, including those related to tax returns, payments, and refunds, enabling recipients to distinguish official communications from phishing scams. As HMRC increasingly uses digital channels for tax compliance outreach, fraudulent impersonation has risen. This guidance supports taxpayer protection within the UK tax administration framework, directly relevant to personal tax compliance and HMRC enforcement communications.
FBR Bahawalpur Zone recovers Rs530m in record enforcement drive
Pakistan's Federal Board of Revenue (FBR) Bahawalpur Zone conducted a record enforcement drive, recovering Rs530 million in tax revenues. The operation reflects FBR's intensified compliance and enforcement efforts across its regional zones, targeting tax evaders and non-compliant taxpayers. The Bahawalpur Zone's achievement highlights the revenue authority's push to broaden the tax base and improve collection efficiency amid Pakistan's fiscal consolidation requirements. Such enforcement drives are part of FBR's broader strategy to meet revenue targets set under IMF program commitments, utilizing audit, detection, and recovery mechanisms to address tax gaps across various taxpayer segments in the region.
Finance Bill 2026 expands FBR audit powers under sales tax law
Pakistan's Finance Bill 2026 proposes significant expansion of the Federal Board of Revenue's (FBR) audit powers under the Sales Tax Act. The amendments aim to strengthen tax enforcement by broadening FBR's authority to conduct audits of registered persons, potentially extending audit timeframes and scope. These changes represent a major shift in Pakistan's indirect tax administration, enhancing the revenue authority's ability to scrutinize sales tax compliance, investigate discrepancies, and recover unpaid taxes. The reforms are part of broader fiscal measures intended to improve tax collection efficiency and close compliance gaps in Pakistan's sales tax regime.
Self Assessment Manual
HMRC's Self Assessment Manual provides comprehensive internal guidance for tax professionals and HMRC staff on the administration of the UK's Self Assessment tax system. It covers procedural rules, filing obligations, payment deadlines, penalties, and compliance requirements for individuals and partnerships submitting tax returns. The manual outlines how HMRC processes returns, handles amendments, issues notices to file, and manages enquiries. It serves as an authoritative reference for understanding HMRC's operational approach to personal tax compliance, including the treatment of late filing, surcharges, and interest charges, making it an essential resource for practitioners advising clients on UK Self Assessment obligations.
Italy: Advocate general says VAT amnesty breached EU law
An Advocate General of the Court of Justice of the European Union has issued an opinion finding that Italy's VAT amnesty scheme breached EU law. The amnesty, which allowed Italian taxpayers to settle outstanding VAT liabilities at reduced amounts, is considered incompatible with EU VAT directives and the principle that member states must ensure effective collection of VAT as an EU own resource. Advocate General opinions, while not binding, are highly influential and frequently followed by the CJEU. This ruling has significant implications for Italy's past amnesty arrangements and potentially for other EU member states that have implemented similar VAT relief or settlement schemes.
Romania: No statute of limitations for carrying forward negative VAT balance (High Court decision)
Romania's High Court has issued a binding decision establishing that there is no statute of limitations applicable to carrying forward a negative VAT balance. The ruling constitutes binding guidance for lower courts and tax authorities across Romania. This decision has significant practical implications for Romanian taxpayers who have accumulated negative VAT balances over extended periods, as it removes any time-bar concerns when seeking to utilize such balances. Tax professionals advising businesses with Romanian VAT registrations should assess the impact of this precedent-setting decision on existing and historical negative VAT positions and consider whether retrospective claims or adjustments may now be warranted.
India: Global procurement services from foreign group entity were not intermediary services for GST purposes (tribunal decision)
India's GST Appellate Tribunal (GSTAT) ruled that global procurement services received by an Indian entity from a Swiss group company constituted an import of services, not intermediary services under the GST framework. This distinction is significant because intermediary services attract different place of supply rules, potentially affecting the tax treatment and liability. The tribunal's decision clarifies that where a foreign group entity provides procurement support directly—rather than arranging services between two parties—the transaction qualifies as a straightforward import of services. This ruling has important implications for multinational groups with intra-group service arrangements involving Indian entities and Swiss or other foreign affiliates.
Australia: Transfer of shares within corporate group not entitled to corporate reconstruction stamp duty relief (Queensland Court of Appeal decision)
The Queensland Court of Appeal ruled that an intra-group share transfer was not eligible for corporate reconstruction stamp duty relief under Queensland legislation. The court determined that the transferor and transferee were not 'group companies' at the time the transferor 'first owned' the shares — a prerequisite for the relief to apply. This decision has significant implications for corporate groups undertaking restructuring transactions in Queensland, as it narrows the availability of stamp duty exemptions where the group relationship did not exist at the point of initial share acquisition. Tax professionals advising on corporate reconstructions should carefully review the timing and sequence of group ownership when assessing eligibility for this relief.
Malaysia: Income tax treaty with Russia enters into force; other tax developments (June 2026)
Malaysia's income tax treaty with Russia has entered into force, marking a significant bilateral tax development. The June 2026 update also covers expansions of various direct and indirect tax incentives in Malaysia. These developments are relevant to multinational businesses operating in or through Malaysia, particularly those with Russian counterparties who may now benefit from reduced withholding tax rates and other treaty protections. Tax professionals should review the treaty provisions alongside the updated incentive frameworks to assess planning opportunities and compliance obligations arising from these changes effective in 2026.
FBR to launch faceless tax audit system
Pakistan's Federal Board of Revenue (FBR) is set to launch a faceless tax audit system aimed at eliminating human interaction between taxpayers and auditors to reduce corruption and improve transparency. The system will use technology to randomly select taxpayers for audit and conduct proceedings digitally, minimizing discretionary powers of tax officials. This initiative is part of broader FBR reforms to modernize tax administration, enhance compliance, and reduce harassment of taxpayers. The faceless audit model draws inspiration from similar systems implemented in India and other jurisdictions, representing a significant shift in how Pakistan conducts its tax enforcement and audit processes.
Pakistan empowers custom courts to freeze assets in illegal fund transfer trials
Pakistan has granted customs courts enhanced powers to freeze assets during trials involving illegal fund transfers. This legislative development empowers judicial authorities to apply asset preservation measures in cases related to illicit capital flows and customs violations. The move strengthens Pakistan's enforcement framework by allowing courts to secure assets before final adjudication, preventing dissipation of funds linked to smuggling, hawala transactions, and other illegal cross-border financial transfers. This represents a significant procedural tool for customs enforcement authorities, aligning Pakistan's customs judicial system with broader anti-money laundering and asset recovery frameworks. Tax and trade compliance professionals operating in Pakistan should note the expanded judicial oversight in customs-related financial crime cases.
2nd Circ. Doubts Tax Plea Advice Misled Man On Deportation
The Second Circuit Court of Appeals expressed skepticism toward a man's claim that flawed legal advice regarding a tax guilty plea misled him about deportation consequences. The case involves an individual arguing that his attorney's counsel on a tax-related plea was constitutionally deficient under an ineffective assistance of counsel theory, with immigration consequences allegedly not properly explained. The appellate court appeared unconvinced that the tax plea advice directly caused the defendant to be misled about potential deportation risks. The case sits at the intersection of criminal tax law and immigration consequences of guilty pleas, raising Sixth Amendment concerns for non-citizen defendants facing tax charges.
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