Tax News Daily
The latest tax news from around the world, summarised and tagged for tax professionals. Updated twice daily.
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States Scrutinizing Aircraft Sales and Lease Transactions
State tax authorities are increasingly scrutinizing aircraft sales and lease transactions, focusing on sales and use tax compliance. These high-value transactions often involve complex structures—including sale-leaseback arrangements, interstate commerce exemptions, and fly-away exemptions—that can trigger audits. States are examining whether proper exemptions were claimed, whether aircraft are used predominantly in interstate commerce, and whether transactions are structured to avoid tax liability. Businesses and individuals involved in aircraft acquisitions should review their tax positions carefully, ensure documentation supports claimed exemptions, and proactively address potential exposure before state auditors identify discrepancies.
Webinar Recap: Tariff Refunds – What Consumer & Industrial Products Companies Need to Do Now
This webinar recap covers tariff refund strategies for consumer and industrial products companies amid evolving US trade policy. It addresses how businesses can identify overpaid tariffs, file for refunds, and navigate exclusion processes under current customs regulations. Key topics include Section 301 tariff exclusions, first sale valuation, and supply chain restructuring to mitigate duties. The article provides actionable guidance on customs compliance and duty recovery, making it directly relevant to companies managing import costs and trade tax exposures in the current geopolitical and regulatory environment.
Okla. Tax Officials Say McGirt Can't Upend Osage Ruling
Oklahoma tax officials are contesting whether the McGirt v. Oklahoma Supreme Court ruling, which affirmed tribal sovereignty over large portions of Oklahoma, can be applied to overturn a prior tax ruling concerning the Osage Nation. Authorities argue the McGirt decision should not disturb established Osage taxation determinations, raising significant questions about the scope of tribal jurisdiction over tax matters. The dispute underscores ongoing tensions between state tax authority and Native American tribal sovereignty, with potentially broad implications for how tax obligations are assessed on tribal lands in Oklahoma.
IRS Asks 7th Circ. To Rehear $300M Hyatt Perks Tax Dispute
The IRS is petitioning the Seventh Circuit Court of Appeals for a rehearing in a $300 million tax dispute involving Hyatt hotel loyalty perks. The case centers on the tax treatment of benefits and rewards provided through Hyatt's loyalty program, with the IRS challenging a prior ruling it believes incorrectly characterized these perks for tax purposes. The outcome could have significant implications for how hotel and hospitality companies account for and report loyalty program liabilities and the associated tax treatment of customer reward benefits across the industry.
France Pushes Back Deadline For Minimum Tax Returns
France has extended the filing deadline for returns related to the global minimum tax, providing companies additional time to comply with Pillar Two reporting obligations. The delay reflects the administrative complexity businesses face in gathering and processing the data required under the OECD's global minimum tax framework. France's move follows similar deadline extensions granted in other jurisdictions and signals ongoing implementation challenges for the 15% global minimum tax regime. The extension offers multinational enterprises operating in France more breathing room to meet their qualified domestic minimum top-up tax and top-up tax filing requirements.
Xero Announces New AI Innovations at Xerocon London
Xero has announced new AI innovations at Xerocon London, targeting accounting and bookkeeping workflows. The developments include AI-powered tools designed to automate data capture, reconciliation, and reporting tasks for accountants and small businesses. While the announcement is broadly focused on accounting technology, the automation of tax-related data entry, VAT coding, and financial reporting processes represents a meaningful tax technology angle, as these tools directly impact how tax compliance and advisory work is performed by accounting professionals using Xero's platform.
Austria's Bank VAT Break Was State Aid, EU Top Court Says
The European Union's top court has ruled that a VAT exemption granted to Austrian banks constituted illegal state aid, finding that the preferential treatment distorted competition within the EU single market. The Court of Justice determined that Austria's bank-specific VAT break conferred an unfair advantage on recipient institutions compared to other businesses subject to standard VAT rules. The ruling may require Austria to recover the unlawfully granted aid from the banks that benefited. The decision reinforces the EU's strict approach to ensuring that tax concessions do not violate state aid regulations.
4th Circ. Rebuffs Tax Attys' Request To Rethink Convictions
The Fourth Circuit Court of Appeals has rejected a request by tax attorneys to reconsider their criminal convictions. The attorneys sought a rehearing, but the appellate court declined to revisit its earlier decision upholding the convictions. This case falls within the realm of tax controversy, involving criminal prosecution of legal professionals in the tax field. The outcome reinforces the court's prior ruling and leaves the convictions intact, with potential further appellate options such as a Supreme Court petition remaining as possible next steps for the convicted attorneys.
Bloomberg: California Film Tax Credit Demand Rises Under Expanded Program
Demand for California's film tax credit program has risen following its expansion. The program offers production companies tax incentives to film in California, aiming to retain and attract entertainment industry jobs and spending within the state. The expanded program has seen increased applications, reflecting growing interest from filmmakers seeking to offset production costs through state-level credits. This highlights the ongoing use of targeted tax incentives as an economic development tool at the state level, with California competing against other states and jurisdictions that offer similar film production tax credit schemes.
Uzbekistan — E-Invoicing & E-Reporting Country Booklet
A country booklet covering Uzbekistan's e-invoicing and e-reporting framework has been published, detailing the regulatory requirements, technical standards, and compliance obligations for businesses operating in the country. The booklet serves as a reference guide for understanding Uzbekistan's mandatory electronic invoicing system, including scope, timelines, and implementation requirements. Such resources are increasingly important as Uzbekistan modernizes its tax administration infrastructure and aligns with broader digital reporting trends seen across emerging markets.
Challenging your business rates valuation
UK government guidance on challenging business rates valuations covers the formal process for disputing rateable values assigned to non-domestic properties in England. Business rates are a property-based tax levied on occupiers of commercial premises, calculated using the rateable value set by the Valuation Office Agency. The guidance outlines the Check, Challenge, Appeal process, deadlines, and evidence requirements for ratepayers who believe their valuation is incorrect. Successful challenges can reduce tax liability, making this directly relevant to UK businesses managing their property tax obligations.
Funded pension schemes (VAT Notice 700/17)
HMRC's VAT Notice 700/17 provides detailed guidance on the VAT treatment of funded pension schemes in the UK. It addresses the complex VAT recovery position for employers and pension fund managers, covering the supply of fund management services, the split of input tax between employers and pension trustees, and the partial exemption implications. The notice reflects HMRC's policy following EU case law developments and explains how VAT on pension fund management costs can be apportioned and reclaimed, a significant compliance issue for UK businesses sponsoring defined benefit or defined contribution pension arrangements.
Sumario de Legislación Tributaria de América Latina 2025 [Versión actualizada]
CIAT has published an updated 2025 summary of tax legislation across Latin America, providing a comprehensive overview of the tax systems and regulatory frameworks in the region. The publication covers key tax rules and legislative developments across Latin American countries, serving as a reference tool for tax professionals, policymakers, and researchers tracking fiscal developments in the region. It consolidates information on various tax categories including income taxes, VAT, and other fiscal measures, offering a comparative view of how different Latin American jurisdictions structure and administer their tax obligations.
Handling wholesale or retail vaping products in the UK
UK government guidance on handling wholesale or retail vaping products sets out compliance obligations for businesses in the vaping supply chain ahead of the introduction of Vaping Products Duty. It covers registration requirements, record-keeping, fiscal marking via duty stamps, and movement procedures for vaping goods. Businesses must register with HMRC and adhere to strict controls to legally handle these products. This is directly relevant to excise duty compliance for UK vaping product traders operating at wholesale or retail level.
Guidance: Preparing for Vaping Products Duty and the Vaping Duty Stamps Scheme
HMRC guidance on preparing for Vaping Products Duty and the Vaping Duty Stamps Scheme outlines the new UK excise duty regime applying to vaping liquids. The duty, announced at Spring Budget 2024, will be charged per millilitre of vaping liquid. The guidance covers registration timelines, the duty stamps scheme requiring physical fiscal marks on vaping products to indicate duty has been paid, and transitional arrangements. Businesses across the vaping supply chain — manufacturers, importers, and wholesalers — must prepare compliance systems ahead of the duty's introduction.
R&D Tax Credits: Fueling Innovation in Technology & Life Sciences
This article explores how R&D tax credits serve as a significant financial incentive for companies in the technology and life sciences sectors. It highlights how businesses can leverage these credits to offset costs associated with qualifying research and development activities, effectively reducing tax liability and freeing up capital for further innovation. The piece likely covers eligibility criteria, qualifying expenditures, and the application process for claiming R&D credits, positioning them as a strategic tool for companies looking to fuel growth and maintain competitive advantage in innovation-driven industries.
Kerala HC Affirms ITC Benefit for Taxpayers Filing GST Returns Within Section 16(5) Deadline
The Kerala High Court has upheld the right of taxpayers to claim Input Tax Credit (ITC) when GST returns are filed within the deadline prescribed under Section 16(5) of the GST Act. The ruling affirms that compliance with the statutory filing timeline is sufficient to secure ITC entitlement, providing clarity and relief to taxpayers who met the Section 16(5) deadline. This decision reinforces procedural fairness in GST administration and has significant implications for businesses seeking to protect their ITC claims against potential denial on technical grounds.
Harpaz Presents “The New Tax Sovereignty” at The Junior International Law Scholars Association Summer Workshop
Legal scholar Harpaz presented a paper titled 'The New Tax Sovereignty' at the Junior International Law Scholars Association Summer Workshop. The presentation explores evolving concepts of tax sovereignty in an international context, likely addressing how globalization, digital economies, and multilateral frameworks such as OECD Pillar Two are reshaping nations' autonomous taxing powers. The work contributes to academic discourse on how states assert and negotiate taxing rights amid cross-border economic activity, treaty obligations, and supranational tax coordination efforts that challenge traditional notions of fiscal sovereignty.
Flashback on ECJ Cases C-62/93 (BP Soupergaz) – Right to deduct cannot be curtailed without Article 27 authorisation
This article revisits the European Court of Justice case C-62/93 (BP Soupergaz), which established that member states cannot curtail the right to deduct input VAT without obtaining prior authorisation under Article 27 of the Sixth VAT Directive. The ruling reinforced the fundamental nature of the deduction right within the EU VAT system, limiting member states' ability to unilaterally introduce derogations. The case remains a key precedent in EU VAT law, affirming that any restriction on input tax recovery must follow a formal derogation procedure approved at the EU level.
Dental Aligners Are Not VAT-Exempt Dental Prostheses, UK Tribunal Confirms
A UK First-tier Tribunal has confirmed that dental aligners do not qualify as VAT-exempt dental prostheses under UK VAT law. The ruling clarifies the distinction between dental prostheses, which benefit from VAT exemption, and dental aligners, which are classified differently and thus subject to standard VAT. The case has significant implications for orthodontic product suppliers and dental practices that may have treated aligners as exempt supplies. The decision underscores the importance of precise product classification in determining VAT treatment within the healthcare and medical devices sector.
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