Tax News Daily
The latest tax news from around the world, summarised and tagged for tax professionals. Updated twice daily.
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CIAT presenta estudio sobre tributación y género durante la 34.ª Conferencia de IAFFE
CIAT (Inter-American Center of Tax Administrations) presented a study on taxation and gender at the 34th IAFFE (International Association for Feminist Economics) Conference. The study examines how tax systems interact with gender equality, analyzing how fiscal policies can either reinforce or reduce gender-based economic disparities. This research highlights the importance of gender-sensitive tax policy design, exploring areas such as how VAT, income tax, and other fiscal instruments disproportionately affect women versus men, and how tax administrations can incorporate gender perspectives into policy development and revenue collection strategies.
Choose the right software for Making Tax Digital for Income Tax
This UK government guidance helps individuals and businesses select appropriate software for Making Tax Digital (MTD) for Income Tax, HMRC's initiative requiring digital record-keeping and quarterly income and expense updates submitted via compatible software. The page directs users to HMRC-recognised software products that meet MTD for Income Tax requirements, covering sole traders and landlords. As MTD for Income Tax becomes mandatory, choosing compliant software is essential. The guidance is relevant to taxpayers, agents, and software developers navigating the digital transformation of personal income tax compliance in the UK.
Specialist Investigations Operational Guidance
This HMRC internal manual provides operational guidance for HMRC's Specialist Investigations unit, which handles complex, high-value, and sensitive tax investigations and inquiries. The guidance covers internal procedures, case handling, and investigative approaches used by specialist teams dealing with serious tax compliance issues, avoidance, and evasion. It is relevant to tax controversy and enforcement, outlining how HMRC conducts in-depth investigations into complex tax matters involving corporates and high-net-worth individuals. The manual serves as a reference for HMRC officers undertaking specialist investigation work.
Bin Maker Too Late To Appeal £161K Tax Bill, Tribunal Says
A UK tax tribunal has ruled that a bin manufacturer filed its appeal against a £161,000 tax bill too late, barring the company from contesting the assessment. The case centers on procedural compliance with appeal deadlines under UK tax law. The tribunal's decision highlights the strict time limits imposed on taxpayers seeking to challenge HMRC determinations, with failure to comply resulting in the loss of appeal rights regardless of the merits of the underlying tax dispute. The ruling serves as a cautionary reminder for businesses about the importance of timely action when disputing tax assessments.
Beyond the Scan-and-Populate: Moving AI to the Client-Facing Front Lines
This article explores how CPA and tax firms are moving AI beyond back-office document scanning toward client-facing applications. It discusses deploying AI tools on the front lines of client interaction — handling queries, delivering advisory insights, and streamlining onboarding and communication. For tax practices, this represents a shift from purely internal automation toward AI-augmented client service delivery. The piece highlights opportunities and risks of this transition, including accuracy, compliance, and trust considerations. It signals a broader evolution in how tax and accounting professionals leverage AI to enhance client relationships and service quality.
House Ways and Means Exploring Perceived Disparity in Sports Team Pay Deduction
The House Ways and Means Committee is investigating a perceived disparity in tax deductions related to sports team player compensation. The inquiry focuses on whether current tax rules governing deductions for player salaries and related pay create inequities, potentially benefiting certain team owners or structures over others. This legislative scrutiny could lead to proposals reforming how sports franchise compensation expenses are treated under the U.S. tax code, touching on corporate income tax deductibility rules. The review reflects broader Congressional interest in ensuring fairness in business expense deductions within the sports industry.
Guidance: Appendix 1: DE 1/10: Requested and Previous Procedure Codes
This UK government guidance details Appendix 1 of the Customs Declaration Service (CDS), specifically covering Data Element 1/10 — Requested and Previous Procedure Codes used in customs import and export declarations. Procedure codes are critical for determining the customs and VAT treatment of goods, including special procedures such as inward processing, warehousing, and temporary admission. Accurate use of these codes ensures correct duty and tax liability calculation. The guidance is essential for importers, exporters, freight forwarders, and customs agents completing declarations under the UK's post-Brexit customs regime.
Guidance: Self Assessment commercial software suppliers
HMRC publishes guidance listing approved commercial software suppliers for Self Assessment tax returns in the UK. The resource helps individuals and agents identify compatible third-party software products that meet HMRC's technical requirements for submitting Self Assessment returns digitally. This supports the UK's broader push toward digital tax administration and is relevant to taxpayers, accountants, and software developers seeking HMRC-recognised tools for personal income tax compliance. The guidance is periodically updated as new suppliers gain approval or existing ones update their offerings.
VAT and Transfer of a Going Concern (TOGC): UK rules and key considerations
This article examines the UK VAT rules surrounding the Transfer of a Going Concern (TOGC), a relief mechanism that treats certain business transfers as outside the scope of VAT. Key considerations include the conditions that must be met for TOGC treatment to apply, such as the transfer of a business as a whole, the buyer intending to carry on the same kind of business, and specific rules around opted-to-tax properties. Misapplication can result in significant VAT liabilities, penalties, and cash flow issues. The article provides practical guidance for businesses and advisers navigating UK TOGC transactions.
Hawaii To Expand First-Time Homebuyer Tax Break
Hawaii is moving to expand its first-time homebuyer tax break, broadening eligibility or increasing the benefit available to residents purchasing their first home. The measure is designed to improve housing affordability in one of the most expensive real estate markets in the United States. By enhancing the tax incentive, Hawaii aims to assist more residents in accessing homeownership. The expansion reflects growing legislative attention to housing costs through targeted personal income tax relief. Details of the expanded program, including income thresholds and credit amounts, are being finalized as part of the state's legislative process.
Outdated Transfer Pricing Policies Create New Risks
Outdated transfer pricing policies pose significant risks for multinational companies as global tax environments evolve rapidly. Policies drafted years ago may no longer reflect current business operations, supply chain structures, or regulatory expectations. With increased scrutiny from tax authorities worldwide and the rollout of Pillar Two rules, companies relying on stale intercompany agreements risk audits, penalties, and double taxation. Regular reviews of transfer pricing documentation are essential to ensure alignment with the arm's length principle, updated functional analyses, and current economic conditions. Proactive policy updates help mitigate controversy risk and demonstrate compliance readiness to tax authorities.
Why Generic AI Still Falls Short in Accounting
The article examines why generic AI tools fall short for accounting professionals, arguing that domain-specific AI trained on accounting and tax knowledge outperforms general-purpose models like ChatGPT. It highlights limitations including hallucinations, lack of regulatory context, and inability to handle complex tax code nuances. The piece makes a case for purpose-built AI solutions that understand accounting workflows, tax compliance requirements, and audit standards, positioning specialized tax and accounting AI as essential for firms seeking reliable automation and accurate financial reporting rather than generic large language models.
Supreme Court Upholds GST Officers’ Arrest Powers, Declares Section 69 Constitutional
India's Supreme Court has upheld the constitutional validity of Section 69 of the GST Act, which grants GST officers the power to arrest individuals for tax offences. The ruling affirms that these arrest powers do not violate fundamental rights and are a legitimate enforcement mechanism under India's indirect tax framework. The decision is significant for GST compliance and enforcement, clarifying that tax authorities can detain suspects without requiring prior court approval in cases involving serious GST violations such as fraudulent input tax credit claims and tax evasion.
Trump-IRS Settlement Result Of Sham Suit, Judge Rules
A federal judge has ruled that a legal settlement between Donald Trump and the IRS was the product of a sham lawsuit, calling into question the validity of the agreement. The judge found that the suit lacked genuine adversarial intent, suggesting it may have been structured to manufacture a favorable tax outcome through collusive litigation rather than legitimate dispute resolution. The ruling raises significant concerns about the integrity of the settlement process and potential manipulation of tax controversy mechanisms. The decision could have broader implications for how courts scrutinize settlements between high-profile taxpayers and tax authorities.
Report a problem using the Customs Declaration Service
HMRC provides a mechanism for traders and agents to report technical problems encountered when using the Customs Declaration Service (CDS), the UK's primary platform for submitting import and export customs declarations. The guidance outlines how users can flag system errors or processing issues affecting their customs filings. Accurate customs declarations are critical for duty and VAT calculations at the border, making reliable system functionality essential for trade compliance in the post-Brexit UK customs environment.
HMRC email updates, videos and webinars if you’re self-employed
HMRC offers a suite of educational resources—including email updates, videos, and live webinars—targeted at self-employed individuals in the UK. These resources cover key personal tax obligations such as Self Assessment filing, income tax, National Insurance contributions, allowable expenses, and Making Tax Digital requirements. The guidance helps self-employed taxpayers stay informed about deadlines, compliance obligations, and available reliefs, supporting HMRC's digital engagement strategy for the growing self-employed population.
Data Element 2/3: Documents and Other Reference Codes (National) of the Customs Declaration Service (CDS)
HMRC publishes technical guidance on Data Element 2/3 of the Customs Declaration Service, detailing the national document and reference codes required when completing UK customs import and export declarations. These codes identify supporting documents—such as licences, certificates, and authorisations—that must be cited in declarations to satisfy customs requirements. Accurate use of these codes is essential for duty assessment, customs clearance, and trade compliance, making this a critical operational reference for importers, exporters, freight forwarders, and customs agents operating under the UK's CDS.
Sign up for Making Tax Digital for Income Tax
HMRC provides step-by-step guidance for taxpayers wishing to sign up for Making Tax Digital for Income Tax (MTD for IT), the UK's mandatory digital reporting regime for self-employed individuals and landlords above certain income thresholds. The guidance covers eligibility criteria, compatible software requirements, and the sign-up process. MTD for IT requires quarterly digital submissions of income and expense data, replacing the traditional annual Self Assessment return. Rollout is phased, with initial mandation beginning April 2026 for those earning over £50,000.
Sign up your client for Making Tax Digital for Income Tax
HMRC guidance on how tax agents can sign up clients for Making Tax Digital (MTD) for Income Tax, part of the UK's digital tax reporting initiative. MTD for Income Tax requires self-employed individuals and landlords to keep digital records and submit quarterly updates to HMRC instead of an annual Self Assessment return. The guidance covers eligibility criteria, the sign-up process for agents acting on behalf of clients, compatible software requirements, and key deadlines. This represents a significant shift in how personal income tax obligations are reported and managed in the United Kingdom.
Policy paper: Cryptoasset loans and liquidity pools
HMRC policy paper clarifying the tax treatment of cryptoasset loans and liquidity pools in the United Kingdom. The guidance addresses how existing tax rules apply when individuals or businesses lend cryptoassets or participate in decentralised finance (DeFi) liquidity pools, including whether disposal events are triggered, how income versus capital gains distinctions apply, and the treatment of returns received. The paper aims to provide certainty for taxpayers engaged in DeFi activities, covering implications for both Capital Gains Tax and Income Tax purposes, reflecting HMRC's evolving approach to digital asset taxation.
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