Tax News Daily
The latest tax news from around the world, summarised and tagged for tax professionals. Updated twice daily.
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PIAF for continuation of remittance incentives for sustained forex inflows
The Pakistan Industrial and Farmers Association (PIAF) has called for the continuation of remittance incentive schemes to sustain foreign exchange inflows into Pakistan. The association argues that tax and financial incentives for overseas Pakistanis sending remittances are critical for stabilizing the country's forex reserves and supporting economic growth. PIAF's advocacy focuses on maintaining preferential tax treatment and financial benefits tied to formal remittance channels, highlighting the intersection of tax policy and foreign currency inflow strategies as Pakistan seeks to bolster its balance of payments position.
Feds to Decide Fate of California’s $2 Billion Plan to Tax Health Insurers to Fund Medi-Cal
Federal authorities are reviewing California's proposal to impose a $2 billion tax on health insurers to fund the Medi-Cal program, the state's Medicaid system. The plan involves a provider tax mechanism that requires federal approval to qualify for matching funds. California relies on this insurer tax structure to draw down federal Medicaid dollars, making federal sign-off critical. The outcome will determine whether the state can sustain its expanded Medi-Cal coverage without significant budget cuts. This represents a significant state-level tax policy decision with major implications for healthcare funding and insurance sector taxation in California.
KPRA sales tax on services collection rises 20pc in FY2025-26
The Khyber Pakhtunkhwa Revenue Authority (KPRA) has recorded a 20% increase in sales tax on services collection during the fiscal year 2025-26. This growth reflects improved compliance, broadened tax base, and enhanced enforcement measures by the provincial tax authority. The surge in revenue signals strengthening fiscal capacity in Khyber Pakhtunkhwa province and underscores the importance of provincial sales tax on services as a key revenue stream. The performance highlights ongoing efforts to modernize tax administration and improve collection efficiency in Pakistan's provincial tax system.
FTO praises FBR official for resolving taxpayer’s pending case
Pakistan's Federal Tax Ombudsman (FTO) has publicly praised a Federal Board of Revenue (FBR) official for successfully resolving a taxpayer's long-pending case. The recognition highlights efforts to improve taxpayer services and reduce the backlog of unresolved tax disputes within FBR. The FTO's acknowledgment serves as an example of effective dispute resolution and responsiveness within Pakistan's tax administration, encouraging officials to prioritize taxpayer grievances. The case underscores the role of the FTO in overseeing tax controversy matters and promoting accountability in tax administration.
Instead of Uniting the Left, California’s Billionaire Tax Measure Has Split Democratic Allies
A California ballot measure proposing a wealth tax targeting billionaires has created divisions among Democratic allies rather than unifying the left. The measure aims to impose additional taxes on ultra-high-net-worth individuals in California, but disagreements over its design, economic impact, and feasibility have fractured progressive coalitions. Critics within the Democratic Party argue it could drive wealthy residents out of state, while supporters see it as essential for addressing inequality and funding public services. The political rift highlights broader tensions around wealth taxation strategies at the state level in the United States.
Child Care Tax Credit for New Hampshire Biz Becomes a Reality
New Hampshire has enacted a child care tax credit for businesses, making it law after legislative approval. The credit is designed to incentivize employers to invest in child care solutions for their employees, addressing workforce participation barriers. Businesses that contribute to employee child care costs or establish on-site facilities can claim the credit against their state tax liability. The measure reflects a growing trend of states using tax incentives to tackle child care affordability and labor supply challenges. New Hampshire joins other states leveraging the tax code to support working families and business competitiveness.
Pakistan Customs registers 201 IPR forfeiture cases in FY2025-26
Pakistan Customs has registered 201 intellectual property rights (IPR) forfeiture cases during fiscal year 2025-26, reflecting intensified enforcement against counterfeit and pirated goods at the border. The cases involve seizure of goods that violate trademark and copyright protections, with customs authorities acting under trade and IPR protection frameworks. This enforcement activity highlights the customs authorities' expanding role in protecting legitimate trade and IPR at Pakistan's borders, with significant implications for import/export compliance, customs duties, and trade regulation for businesses operating in or importing into Pakistan.
GST E-Way Bill Generation Reaches 136.77 Million, Up 14.5% YoY in June 2026
GST E-Way Bill generation in India reached 136.77 million in June 2026, marking a 14.5% year-on-year increase. The E-Way Bill system, a critical compliance mechanism under India's GST framework, requires businesses to generate electronic documentation for the movement of goods above a specified threshold. The sustained growth in E-Way Bill volumes reflects increased economic activity and improved GST compliance across the country. This data, tracked by the GST Network, serves as a key indicator of goods movement and indirect tax compliance health in India.
How to Scale Your Amazon Business Into the EU Without Getting Tripped Up by VAT
This article guides Amazon sellers on navigating EU VAT compliance when expanding their e-commerce business into European markets. It covers key obligations including VAT registration thresholds, the One Stop Shop (OSS) scheme for simplifying multi-country filings, import VAT on goods entering the EU, and marketplace facilitator rules where Amazon collects VAT on behalf of sellers. The article highlights common pitfalls such as failing to register before crossing thresholds, incorrect commodity classifications, and ignoring fiscal representation requirements. Practical steps for maintaining compliance across multiple EU member states are outlined to help sellers scale without facing penalties or account suspension.
Rauh & Jaros: It Failed in France. It Would Be a Disaster in California.
This article by Rauh and Jaros analyzes a wealth tax proposal in California, drawing comparisons to France's experience with a similar levy that was ultimately repealed after producing capital flight and disappointing revenue. The authors argue that a California wealth tax would similarly fail, potentially driving high-net-worth residents and businesses out of the state, undermining the broader tax base. The piece engages substantively with tax policy design, behavioral responses to wealth taxation, and lessons from international experience, making it a genuine contribution to the debate over progressive personal income tax and wealth tax policy.
Rajkot ITAT Sets Aside Reassessment as Escaped Income Is Below INR 50 Lakh
The Rajkot Income Tax Appellate Tribunal (ITAT) set aside a tax reassessment order against a taxpayer after determining that the alleged escaped income fell below the INR 50 lakh threshold prescribed under Indian income tax law. The tribunal found the reassessment proceedings were initiated without satisfying the jurisdictional requirement under the relevant provision of the Income Tax Act, which mandates a minimum escaped income threshold for reopening assessments beyond a specified period. The ruling reinforces procedural safeguards protecting taxpayers from arbitrary reassessment actions by tax authorities.
Domestic Revenue Mobilisation Must Take Centre Stage in Africa’s Development Agenda
The African Tax Administration Forum (ATAF) highlights the critical need for domestic revenue mobilisation (DRM) to drive Africa's development agenda, reducing dependence on foreign aid and external debt. The piece argues that strengthening tax systems, broadening tax bases, and improving tax administration across African nations are essential for sustainable financing of public services and infrastructure. With aid flows under pressure globally, African governments must prioritise building robust, efficient revenue collection frameworks. ATAF calls for coordinated regional efforts, capacity building, and policy reforms to enhance compliance and close tax gaps across the continent.
Software developers providing entry summary declaration support
This UK government guidance addresses software developers building tools to support entry summary declaration (ENS) submissions, which are required for goods entering Great Britain. The page outlines technical specifications and requirements for customs declaration software, ensuring compliance with UK import control regulations. Entry summary declarations are a core customs and trade compliance obligation, making this directly relevant to customs software development and trade facilitation technology. Developers must align their tools with HMRC's systems to enable traders to meet their legal obligations at the border.
Introducing the 2026 Denmark VAT Guide
A 2026 Denmark VAT guide has been introduced, providing comprehensive guidance on VAT compliance requirements in Denmark. The guide covers key aspects of Danish VAT regulations, registration thresholds, filing obligations, and compliance procedures relevant for businesses operating in or trading with Denmark. It serves as a practical reference for companies navigating Denmark's VAT framework, reflecting any updates or changes applicable for 2026. The resource is aimed at helping businesses and tax professionals ensure accurate VAT reporting and adherence to Danish tax authority requirements in the coming year.
Madras HC Upholds GST Interest on Wrongful ITC Utilisation Despite GSTR-3B and GSTR-2A Mismatch
The Madras High Court has upheld GST interest charges on wrongful Input Tax Credit (ITC) utilisation where discrepancies existed between GSTR-3B and GSTR-2A filings. The court ruled that mismatches between self-declared returns and auto-populated purchase data constitute wrongful ITC claims, attracting interest liability under GST law. This ruling reinforces tax authorities' ability to levy interest in cases where taxpayers utilise ITC that cannot be substantiated through supplier-uploaded invoices, emphasising the importance of reconciling purchase records with supplier filings before claiming credits.
Allahabad HC: Physical GST Adjudication Notice Mandatory After Registration Cancellation
The Allahabad High Court has ruled that physical service of adjudication notices is mandatory after GST registration cancellation, as cancelled registrants no longer have access to the GST portal for digital communications. The court held that relying solely on electronic notices via the portal in such circumstances violates principles of natural justice, rendering the proceedings invalid. Tax authorities must ensure physical delivery of notices to the taxpayer's last known address post-cancellation to maintain due process and procedural validity in GST adjudication proceedings.
Even a 2-Day Delay Can Kill a Reassessment: Delhi High Court Draws a Strict Line on Section 148 Timelines
The Delhi High Court has ruled strictly on procedural timelines under Section 148 of the Income Tax Act, holding that even a two-day delay in issuing reassessment notices can invalidate the entire reassessment proceedings. The court emphasized that statutory deadlines are mandatory and not merely directory, leaving no room for condonation of delay in such matters. This ruling reinforces taxpayer protections against reassessment and signals that tax authorities must adhere precisely to prescribed timelines or risk their proceedings being struck down entirely.
Worldwide Upcoming E-Invoicing mandates, implementations and changes – Chronological
A chronological overview of upcoming e-invoicing mandates, implementations, and regulatory changes across multiple countries worldwide. The article tracks scheduled rollouts and amendments to e-invoicing requirements globally, serving as a reference tool for businesses and tax professionals needing to monitor compliance deadlines. It covers various jurisdictions and their respective timelines for adopting or expanding electronic invoicing obligations, helping organizations anticipate and prepare for new digital tax reporting requirements as governments accelerate the transition away from paper-based invoicing systems.
Is Delay the End of a Tax Case? ITAT Says Justice Must Prevail Over Technicalities
India's Income Tax Appellate Tribunal (ITAT) has ruled that procedural delays should not automatically defeat a taxpayer's case when substantive justice is at stake. The tribunal held that technicalities and limitation periods must be balanced against the principles of natural justice and equity, allowing delayed appeals in appropriate circumstances. The decision reflects a judicial philosophy prioritizing merit-based adjudication over rigid procedural bars, offering relief to taxpayers who may have missed filing deadlines due to genuine hardship or oversight.
Democratic Senators Probe Scope of Trump’s IRS Immunity Deal
Democratic senators are investigating the scope of a reported IRS immunity deal under the Trump administration, raising concerns about whether certain individuals or entities are being shielded from federal tax enforcement actions. The probe focuses on the extent of any agreements that may limit the IRS's ability to pursue tax compliance and enforcement against specific parties. This represents a significant tax controversy and oversight issue, with implications for the integrity of federal tax administration and the independence of the IRS as an enforcement body.
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