Tax News Daily
The latest tax news from around the world, summarised and tagged for tax professionals. Updated twice daily.
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New data suggests Scotland’s 48p tax rate may be losing money
New data indicates that Scotland's 48p top income tax rate may be generating less revenue than anticipated, raising concerns about Laffer curve effects. The analysis suggests high earners may be relocating, reducing taxable income, or otherwise adjusting behaviour in response to the elevated rate, potentially resulting in a net revenue loss compared to what a lower rate would have yielded. This finding has significant implications for Scottish tax policy and the broader debate on optimal top marginal rates within the UK's devolved tax framework.
UAE Flips the Valuation Problem Upside Down: A Top-Down Method for Costing Deemed Supplies of Services
The UAE has introduced a top-down valuation methodology for deemed supplies of services, addressing a longstanding challenge in VAT compliance. Rather than building up costs from scratch, businesses can work downward from a known market or retail value to determine the taxable amount for services provided without consideration. This approach simplifies compliance for multinational groups and related-party transactions where internal cost data may be difficult to isolate. The guidance has practical implications for businesses making intra-group or employee-related deemed supplies, offering a more pragmatic alternative to traditional cost-based valuation under UAE VAT rules.
FBR urges taxpayers to file accurate income tax returns from July 27
Pakistan's Federal Board of Revenue (FBR) has urged taxpayers to file accurate income tax returns starting July 27, marking the opening of the annual filing season. The FBR is emphasizing the importance of correct and complete disclosures, warning against errors or omissions that could trigger audits or penalties. The initiative reflects ongoing efforts by Pakistani tax authorities to improve compliance and broaden the tax base. Taxpayers are encouraged to use the FBR's online portal and ensure all income sources are properly declared ahead of the deadline.
No Payment, No VAT? Not Quite — How Free Supplies and the “Consideration” Test Really Work
This article examines the VAT treatment of free or no-consideration supplies, clarifying common misconceptions about when VAT applies even without payment. It explores how the 'consideration' test operates under VAT law, explaining that supplies can still be taxable where a non-monetary benefit or indirect link exists. Key scenarios covered include promotional giveaways, samples, employee benefits, and related-party transactions. The analysis highlights risks for businesses assuming that zero-price supplies fall outside the VAT net, and underscores the importance of correctly identifying whether a supply is truly free or merely structured without explicit monetary consideration.
Norway Locks In Mandatory B2B E-Invoicing: What the 2027 Start Really Means for Businesses
Norway has confirmed mandatory B2B e-invoicing will commence in 2027, marking a significant shift for businesses operating in the country. The mandate will require companies to issue and receive structured electronic invoices in compliant formats, aligning Norway with broader European e-invoicing trends. The article outlines what the 2027 start date means in practice, including preparation timelines, format requirements, and the likely phased approach for different business sizes. Companies with Norwegian operations or suppliers are advised to begin readiness assessments now, given the system and process changes required for compliance with the new obligation.
Beyond the XML: Why Data Quality — Not Invoice Format — Will Decide France’s 1 September Go-Live
With France's mandatory B2B e-invoicing go-live set for 1 September, this article argues that technical format compliance alone is insufficient — data quality is the decisive factor for successful implementation. Even correctly structured XML invoices risk rejection or downstream errors if underlying data fields such as VAT numbers, buyer identifiers, and line-item details are inaccurate or incomplete. The piece urges businesses to audit their master data, ERP configurations, and supplier onboarding processes ahead of the deadline. It frames data governance as the critical operational challenge separating businesses that will cope smoothly from those facing disruption at launch.
Gauhati HC Directs Authorities to Restore Registration After Filing Pending GST Returns and Clearing Dues
The Gauhati High Court has directed tax authorities to restore GST registration for a taxpayer after they filed all pending GST returns and cleared outstanding dues. The ruling reinforces that authorities must reinstate cancelled registrations once a taxpayer fulfils compliance obligations, providing relief to businesses facing registration cancellation. This decision has practical implications for GST-registered entities in India seeking restoration of cancelled registrations, clarifying the procedural pathway through return filing and payment of dues as sufficient grounds for reinstatement.
Legal Heir Is Not Always the Legal Representative: ITAT Agra Quashes Assessment Passed Without Proper Compliance Under Section 159
The Income Tax Appellate Tribunal (ITAT) Agra has quashed a tax assessment made against a legal heir, ruling that a legal heir does not automatically qualify as a legal representative under Section 159 of the Income Tax Act. The tribunal found that proper procedural compliance was not followed before treating the legal heir as the deceased taxpayer's representative for assessment purposes. This ruling has significant implications for tax authorities and practitioners handling assessments involving deceased taxpayers, clarifying the distinction between heirship and legal representation in Indian income tax proceedings.
Section 56(2)(x): Can Stamp Duty Value on Registration Date Trigger Tax Even When the Property Deal Was Finalised Years Earlier? ITAT Ahmedabad Says No
The ITAT Ahmedabad has ruled that stamp duty value at the date of property registration cannot trigger tax liability under Section 56(2)(x) when the underlying property deal was finalised years earlier. The tribunal held that the relevant valuation date should be when the agreement to sell was executed, not the registration date. This decision provides important relief to taxpayers where property prices rise between agreement and registration, preventing taxation of notional gains arising purely from timing differences in a transaction's completion.
Sold Multiple Houses in the Same Year? ITAT Bangalore Rules Section 54 Exemption Is Available for Each House Separately
The ITAT Bangalore has ruled that the Section 54 capital gains exemption on reinvestment in residential property is available separately for each house sold in the same financial year. The tribunal rejected a restrictive interpretation that would limit the exemption to a single transaction per year, holding that each qualifying sale and reinvestment should be assessed independently. This taxpayer-friendly ruling clarifies that individuals selling multiple residential properties in one year can claim the Section 54 exemption on each transaction, provided reinvestment conditions are met for each.
Andhra Pradesh Inaugurates Two New GSTAT Benches to Hear GST Appeals
Andhra Pradesh has inaugurated two new benches of the GST Appellate Tribunal (GSTAT) to handle the growing backlog of GST-related appeals in the state. The establishment of these benches marks a significant development in India's GST dispute resolution infrastructure, providing taxpayers in Andhra Pradesh with a formal appellate forum closer to home. The new GSTAT benches are expected to expedite resolution of pending GST disputes, reducing litigation timelines and offering businesses a structured mechanism to challenge GST assessment orders and other tax authority decisions.
The Five Stages of Tax Disputes: From Audit to Resolution
This KPMG article outlines a five-stage framework for managing tax disputes involving multinational organizations, covering the full lifecycle from initial audit through appeals, litigation, and settlement. It provides guidance for tax leaders on how to navigate interactions with global tax authorities at each stage, emphasizing proactive risk management, documentation, and strategic decision-making. The article addresses how multinationals can effectively respond to audit findings, engage in administrative appeals, pursue litigation where necessary, and reach negotiated resolutions, helping organizations minimize exposure and manage reputational and financial risks associated with cross-border tax controversies.
2025 Transfer Pricing Year in Review
KPMG's 2025 Transfer Pricing Year in Review examines how multinational enterprises are navigating a rapidly evolving global transfer pricing landscape shaped by digital disruption and regulatory change. The report covers key developments including the continuing implementation of OECD Pillar Two rules, increased scrutiny from tax authorities worldwide, evolving documentation requirements, and the growing use of data and technology in transfer pricing audits. It highlights trends in advance pricing agreements, dispute resolution mechanisms, and the impact of geopolitical shifts on intercompany pricing strategies. The review serves as a comprehensive reference for tax professionals managing cross-border related-party transactions in an increasingly complex environment.
Gauhati HC: ITC Can’t Be Refused to Bona Fide Purchaser for Seller’s Failure to File GST Returns
The Gauhati High Court ruled that input tax credit (ITC) cannot be denied to a bona fide purchaser solely because the seller failed to file GST returns. The court held that a genuine buyer who has completed a legitimate transaction should not bear the tax burden arising from the seller's non-compliance. This ruling reinforces protections for honest taxpayers under India's GST framework and has significant implications for businesses facing ITC reversals due to supplier defaults, clarifying that tax authorities must establish the purchaser's knowledge or involvement in the seller's non-compliance before denying credit.
Wrong Income Tax Officer? Entire Reassessment Can Be Quashed – Why Your Returned Income Decides Your Jurisdiction
An Indian tax ruling clarifies that jurisdiction for income tax reassessment is determined by the taxpayer's returned income, not assessed income. If reassessment proceedings are initiated by an officer who lacks jurisdiction based on the returned income threshold, the entire reassessment can be quashed as void. This has significant practical implications for taxpayers facing reassessment notices, as a jurisdictional defect constitutes a fundamental procedural flaw. Taxpayers can challenge reassessments on this ground, potentially nullifying the entire proceeding regardless of the merits of the underlying tax demand.
Can You Claim Section 54 Exemption for Multiple Floors in One Redeveloped Building? ITAT Mumbai Gives a Big Relief
The Income Tax Appellate Tribunal (ITAT) Mumbai has ruled that a taxpayer can claim Section 54 capital gains exemption for multiple residential floors within a single redeveloped building. The tribunal held that each floor qualifying as an independent residential unit can be treated as a separate property for exemption purposes. This decision provides significant relief to taxpayers involved in property redevelopment transactions, particularly in urban areas where vertical redevelopment is common. The ruling broadens the interpretation of Section 54 exemption eligibility, potentially benefiting many property owners in similar redevelopment scenarios.
Luxembourg Moves to Extend Mandatory E-Invoicing to Domestic B2B
Luxembourg is advancing legislation to extend mandatory e-invoicing requirements to domestic B2B transactions. The move aligns Luxembourg with broader EU trends toward structured digital invoicing and real-time reporting. The proposed extension would require businesses operating domestically to issue and receive electronic invoices in a standardized format, expanding beyond existing mandates. Practitioners should monitor implementation timelines and technical specifications as the regulatory framework develops. This represents a significant compliance shift for businesses operating in Luxembourg, requiring updates to invoicing systems and internal processes ahead of any enforcement deadline.
Spain’s mandate: structured invoices, platform exchange, and payment transparency
Spain's e-invoicing mandate requires businesses to issue structured electronic invoices, exchange them via approved platforms, and enhance payment transparency. The regulation mandates use of standardized formats such as Factura-e or equivalent, with exchange through certified platforms ensuring traceability. Payment status reporting obligations add a layer of financial transparency aimed at reducing fraud and late payments. Businesses must adapt their ERP and invoicing systems to comply. The mandate represents one of the more comprehensive e-invoicing frameworks in the EU, combining invoice structure, platform intermediation, and payment lifecycle reporting into a single regulatory regime.
Gambia Approves E-Invoicing System for VAT and Other Taxes
Gambia has approved the implementation of an e-invoicing system covering VAT and other taxes, marking a significant step in the country's tax administration modernization. The system is designed to improve compliance, reduce tax evasion, and enhance real-time visibility for the Gambia Revenue Authority. By digitizing invoice issuance and capture, the mandate aims to broaden the tax base and improve audit capabilities. Businesses operating in Gambia will need to integrate with the approved e-invoicing infrastructure. The development reflects a growing trend of African nations adopting digital tax administration tools to strengthen revenue collection.
United Arab Emirates: FTA issues VAT guidance on digital currency and life insurance
The UAE Federal Tax Authority (FTA) has issued new VAT guidance covering the treatment of digital currencies and life insurance products. The guidance clarifies how VAT applies to transactions involving cryptocurrencies and digital assets, as well as the VAT treatment of life insurance policies in the UAE. This regulatory update is significant for businesses operating in the fintech, crypto, and insurance sectors, providing clearer compliance obligations under the UAE VAT framework. Practitioners and businesses dealing with digital currency exchanges or life insurance products will need to review their VAT positions in light of the FTA's updated guidance.
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