Tax News Daily
The latest tax news from around the world, summarised and tagged for tax professionals. Updated twice daily.
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Have You Received a Letter from HMRC About Making Tax Digital for Income Tax?
HMRC has begun issuing letters to taxpayers who will be mandated to join Making Tax Digital for Income Tax (MTD for IT) from April 2026. This article explains what the letters mean, who is receiving them, and what action recipients should take. Targeted at sole traders and landlords earning over £50,000, the letters signal HMRC's formal notification process ahead of the mandate. The article advises taxpayers to assess their digital readiness, select compliant software, and engage with an accountant to ensure a smooth transition before the deadline.
How Withholding Taxes Affect Cross-Border Investment in Europe
An analysis of how withholding taxes on dividends and other investment income affect cross-border investment flows within Europe. The piece examines how varying withholding tax rates across European countries create barriers to cross-border capital allocation, potentially distorting investment decisions. It likely explores how treaty networks, EU directives such as the Parent-Subsidiary Directive, and domestic rates interact to shape the effective tax burden on cross-border returns. The analysis highlights the competitive and economic implications of withholding tax policy for European capital markets and investment attractiveness, offering insights relevant to policymakers and practitioners managing international investment structures.
Section 68 Cannot Be Invoked Mechanically: Gujarat High Court Says One-to-One Matching of Bank Credits with Sales Is Not Mandatory
The Gujarat High Court has ruled that Section 68 of the Income Tax Act, which deals with unexplained cash credits, cannot be invoked mechanically by tax authorities. The court held that a one-to-one matching of bank credits with individual sales transactions is not mandatory for taxpayers to explain the source of deposits. The ruling provides relief to businesses where bank credits represent aggregated sales proceeds, clarifying that tax officers must consider the overall nature of business operations and available records rather than demanding a rigid transaction-by-transaction correlation when assessing unexplained credits.
Batchelder: When Money’s Time Isn’t Always Valued
This article by Batchelder examines the time value of money in tax contexts, exploring situations where tax law does not consistently account for the economic principle that money received sooner is worth more than money received later. The analysis likely covers areas such as deferral benefits, tax timing mismatches, and structural inconsistencies in how the tax code treats the temporal aspects of income and deductions, with implications for tax policy design and equity across different taxpayer situations.
IRS raises standard mileage rates for remainder of 2026
The IRS has announced increased standard mileage rates effective for the remainder of 2026. These rates are used by taxpayers to calculate deductible costs of operating a vehicle for business, charitable, medical, or moving purposes. The mid-year adjustment reflects rising fuel and vehicle operating costs. Taxpayers and employers using the standard mileage method for expense reimbursements and deductions will need to apply the updated rates for the second half of the year. This change affects individual filers, self-employed persons, and businesses that reimburse employees for work-related driving, impacting personal income tax deductions and employer reimbursement policies.
IRS raises standard mileage rates for remainder of 2026
The IRS has announced an increase in standard mileage rates for the remainder of 2026, affecting how taxpayers calculate deductible vehicle expenses for business, medical, and charitable purposes. Standard mileage rates are used by individuals and businesses as an alternative to tracking actual vehicle expenses, making this adjustment directly relevant to personal and business tax filings. The mid-year revision reflects changes in fuel costs and vehicle operating expenses. Taxpayers and employers using these rates for reimbursement and deduction purposes will need to update their calculations accordingly for the second half of the tax year.
Tokenized Stocks Are Coming – What Public Accountants Need to Know
Tokenized stocks represent traditional equities recorded on blockchain, creating new accounting and tax complexities for public accountants. Key tax considerations include how tokenized stocks are classified—as securities or digital assets—which affects capital gains treatment, holding period determination, and reporting obligations. Wash sale rules, dividend treatment, and cost basis tracking present additional challenges when securities migrate to blockchain rails. Accountants must also consider whether token transfers trigger taxable events and how to handle fractional ownership. As regulatory frameworks from the SEC and IRS evolve, practitioners need to stay current on guidance governing these hybrid instruments to properly advise clients and ensure compliance.
Here’s How Much Americans Pay in Taxes Over Their Lifetime
An analysis of lifetime tax burdens for Americans, examining how much the average person pays across all tax types over their lifetime. The study likely covers federal and state income taxes, payroll taxes, sales taxes, and other levies, providing context on the cumulative tax load relative to lifetime earnings. This type of research helps individuals and policymakers understand the overall fiscal pressure on households and can inform debates around tax reform, retirement planning, and wealth accumulation over a working life in the United States.
HMRC Still Weighing How To Treat Offshore Interest Income
HMRC is still deliberating on the appropriate tax treatment of offshore interest income, creating uncertainty for taxpayers with overseas investments. The UK tax authority has not yet issued definitive guidance on how such income should be classified and taxed, leaving individuals and businesses in a holding pattern. This ongoing review may affect how offshore interest is reported and assessed for UK tax purposes. Taxpayers and advisers are awaiting clarity from HMRC to ensure compliance and proper tax planning around cross-border interest income arrangements.
NYSBATS Report on NYC’s Pied-à-Terre Tax
The New York State Bar Association Tax Section (NYSBATS) has released a report examining New York City's proposed pied-à-terre tax, which would impose a levy on non-primary residential properties owned by non-residents. The report analyzes the tax's structure, legal feasibility, and potential revenue implications for the city. A pied-à-terre tax targets luxury secondary homes held by wealthy individuals who do not primarily reside in NYC, raising questions around property valuation, enforcement, and constitutional considerations under state and local tax law.
Online Rummy Loss Cannot Be Taxed as Gross Winnings: Hyderabad ITAT Deletes ₹3.54 Crore Addition
The Hyderabad Income Tax Appellate Tribunal (ITAT) ruled that losses from online rummy cannot be disregarded when calculating taxable winnings. The tribunal deleted a ₹3.54 crore addition made by tax authorities who had taxed gross winnings without offsetting losses. The ruling clarifies that net winnings, not gross receipts, form the correct basis for taxation in skill-based online gaming. This decision has significant implications for how online gaming platforms and players report income under Indian personal income tax law, particularly amid evolving regulatory treatment of online gaming taxation in India.
No Form 10B? ITAT Delhi Clarifies: Charitable Trust Cannot Be Taxed on Gross Receipts Alone
The Delhi Income Tax Appellate Tribunal (ITAT) clarified that a charitable trust's failure to file Form 10B (audit report) does not automatically expose its entire gross receipts to taxation. The tribunal held that procedural non-compliance cannot override substantive entitlement to exemptions under Indian income tax law for registered charitable trusts. Tax authorities cannot treat gross receipts as taxable income solely due to a missing form. The ruling reinforces a taxpayer-friendly interpretation of compliance requirements, distinguishing procedural defaults from substantive eligibility for tax-exempt status under Indian law.
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.
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.
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.
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.
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.
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