Tax News Daily
The latest tax news from around the world, summarised and tagged for tax professionals. Updated twice daily.
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Louisiana Sales Tax Rules for Peer-to-Peer Vehicle Sharing Platforms
Louisiana has enacted specific sales tax rules for peer-to-peer vehicle sharing platforms, effective 2026. These regulations establish how sales tax applies to transactions facilitated through P2P car-sharing services, clarifying the tax collection and remittance obligations for platform operators. The rules address the marketplace facilitator framework, determining whether the platform or the individual vehicle owner bears responsibility for collecting and remitting Louisiana sales tax. This development is significant for companies like Turo and similar platforms operating in Louisiana, as it brings P2P vehicle sharing in line with broader marketplace facilitator legislation governing the sharing economy.
Supreme Court: Section 74 Cannot Be Invoked Without Proof of Fraud or Fake ITC
India's Supreme Court ruled that Section 74 of the GST Act, which deals with tax evasion through fraud or suppression of facts, cannot be invoked without concrete proof of fraud or use of fake input tax credit. The judgment establishes that tax authorities must demonstrate clear evidence of fraudulent intent before applying the stricter provisions and extended limitation periods under Section 74. This decision limits the scope of the provision and protects taxpayers from arbitrary invocation of fraud-related penalties, setting an important precedent for GST enforcement and litigation across India.
USTR Imposes New Section 301 Tariffs Targeting Forced Labor Concerns Across 60 Economies
The USTR has imposed new Section 301 tariffs targeting forced labor concerns across 60 economies. These tariffs represent a significant trade policy action, adding duties on imports from countries where forced labor practices have been identified. Section 301 tariffs are a key customs and trade tool used by the US to address unfair trade practices. Affected businesses importing goods from these 60 economies will face increased duty burdens, requiring immediate supply chain reviews and tariff classification assessments. Compliance teams must evaluate country-of-origin determinations and potential mitigation strategies such as sourcing diversification or tariff exclusion requests.
A Competitive Corporate Tax Code is Key to Sustaining Strong Economic Growth
The Tax Foundation argues that a competitive corporate tax code is essential for sustaining strong economic growth. The piece likely examines how corporate tax rates, structures, and incentives affect business investment, competitiveness, and broader economic performance. It advocates for tax policy reforms that keep the corporate tax system attractive relative to international peers, emphasizing the relationship between lower or more efficient corporate taxation and increased capital formation, productivity, and job creation. The article contributes to ongoing policy debates around corporate tax competitiveness, particularly relevant in the context of global minimum tax discussions under Pillar Two.
Tennessee Farmer Tried to Return $20,000 to IRS. Years Later, He’s Still Fighting
A Tennessee farmer received a $20,000 IRS payment he believed was an error and attempted to return the funds, only to become entangled in a prolonged dispute with the agency. The case highlights serious procedural and administrative failures within the IRS, raising questions about taxpayer rights, IRS error resolution processes, and the difficulties individuals face when trying to correct government mistakes. The ongoing controversy illustrates broader concerns about IRS responsiveness and the burden placed on ordinary taxpayers navigating complex federal tax administration, even when acting in good faith to comply with their obligations.
Do You Make the Grade as a Real Estate Pro?
This article examines the IRS requirements for taxpayers to qualify as real estate professionals, a designation that allows them to deduct rental losses against ordinary income without passive activity loss limitations. It outlines the two key tests: spending more than 750 hours annually in real property trades or businesses, and that real estate activity must constitute more than half of total working hours. The piece covers documentation requirements, common audit triggers, and strategies for meeting the threshold, offering practical guidance for CPAs advising clients with significant real estate holdings seeking to maximize tax deductions.
CPAacademy: RACE, WEALTH, AND U.S. TAX POLICY: WHO BENEFITS FROM AND WHO BEARS TAX BURDENS?
A CPAacademy course examines the intersection of race, wealth, and U.S. tax policy, analyzing which demographic groups benefit from tax provisions and which bear disproportionate tax burdens. The course addresses structural questions about how the U.S. tax code distributes benefits and obligations across racial and economic lines, relevant to practitioners advising on equity-related policy discussions and tax reform debates.
Author Trust Royalties Are Capital, Not Income, UK Court Says
A UK court has ruled that royalties received by an author's trust are capital in nature rather than income, a significant tax classification decision. The distinction matters because capital receipts and income receipts are taxed under different regimes in the UK, with capital gains tax treatment potentially more favourable than income tax. The ruling has implications for authors, estates, and trusts that receive royalty streams, potentially affecting how such payments are structured and reported. Practitioners advising creative industry clients on trust and estate planning will need to consider this judgment when assessing the tax treatment of ongoing royalty arrangements.
Tax Court of Canada says CRA Cannot Use ‘Fairness’ Reassessment to Immunize a Tax Increase from Appeal: A Canadian Tax Lawyer Analyzes Forrest v The King
The Tax Court of Canada ruled in Forrest v The King that the CRA cannot use a 'fairness' reassessment as a mechanism to increase taxes while simultaneously shielding that increase from taxpayer appeal. A Canadian tax lawyer analyzes the decision, highlighting that the CRA's attempt to invoke taxpayer relief provisions to issue a reassessment that raised taxes—then argue the increase was immune from appeal—was rejected. The court affirmed that taxpayers retain full appeal rights against any tax increase, regardless of the procedural route used by the CRA to issue the reassessment.
Gig Economy Workers Beware How You Are Taxed in Canada: CRA Audit Risks, Creator Income, AI Income, and GST/HST Obligations
Canadian gig economy workers, including content creators and AI-assisted income earners, face significant tax obligations and CRA audit risks. The article outlines how income from platforms, digital content, and AI-generated revenue is taxable as business income under Canadian law, requiring accurate reporting on personal tax returns. GST/HST registration obligations arise once earnings exceed the $30,000 small supplier threshold. The CRA is increasingly targeting gig workers through third-party data matching and platform reporting. Workers must track expenses carefully and understand self-employment tax rules to remain compliant and avoid penalties.
Microsoft Sued Over Xbox Tariff Costs, Refunds
Microsoft is facing a class-action lawsuit from Xbox console buyers alleging the company failed to pass on or adequately disclose tariff-related cost increases, and did not provide refunds after collecting higher prices tied to import tariffs. The suit raises questions about consumer protection obligations when tariff costs are passed to end customers. While primarily a consumer protection legal dispute, the case has indirect implications for how companies handle tariff cost pass-through disclosures and potential customs and trade tax compliance obligations when pricing products subject to import duties.
US To Impose Widespread Tariffs As Temporary Duties Expire
The US is set to impose widespread tariffs as a period of temporary reduced duties expires, marking a significant escalation in trade policy. The move affects a broad range of imported goods and trading partners, with businesses facing higher import costs as previously paused or reduced tariff rates end. Companies reliant on global supply chains must reassess sourcing strategies, customs duty liabilities, and pricing models. The development signals a continued hardening of US trade policy and will require importers to revisit classification, valuation, and duty mitigation strategies such as foreign trade zones and first-sale valuation.
Owner Of Dissolved UK Biz Allowed To Fight Capital Gains Tax
A UK tribunal has permitted the owner of a dissolved UK business to contest a capital gains tax assessment, despite the company's dissolution. The case raises procedural and substantive questions about the ability of former shareholders or directors to challenge tax liabilities arising from a company that no longer legally exists. The ruling is relevant for practitioners handling tax disputes involving dissolved entities, including questions of standing, time limits, and liability attribution. It highlights the importance of understanding how HMRC pursues capital gains assessments in post-dissolution scenarios and the rights of individuals connected to dissolved businesses.
Digital Asset Industry Group Sues to Block Illinois’ First-in-the-Nation Crypto Tax
A digital asset industry group has filed a lawsuit seeking to block Illinois from enforcing what is described as the first-of-its-kind cryptocurrency tax in the United States. The legal challenge targets Illinois' novel tax on crypto transactions, arguing it is unconstitutional or otherwise legally defective. The case represents a significant tax controversy with broad implications for how U.S. states may tax digital assets. A successful challenge could deter similar legislation in other states, while a defeat could open the door to widespread state-level crypto taxation beyond existing capital gains frameworks.
Local Governments Could Lose $12B Under Florida Property Tax Plan
A proposed Florida ballot measure or legislative plan to reduce or eliminate property taxes could cost local governments approximately $12 billion in annual revenue, according to a new study. The plan, which may involve homestead exemption expansions or broader property tax limitations, threatens funding for schools, emergency services, and infrastructure. Critics warn of severe fiscal consequences for municipalities, while supporters frame it as meaningful relief for homeowners. The proposal reflects a broader national debate about property tax burdens and the structural tension between state-level tax cuts and local government funding adequacy.
Luxembourg Formalises Mandatory B2B E-Invoicing over a Peppol Four-Corner Network
Luxembourg has formally legislated mandatory B2B e-invoicing using the Peppol four-corner network model. The regulation establishes a structured framework requiring businesses to exchange electronic invoices through accredited Peppol access points, aligning Luxembourg with broader EU digital reporting initiatives. The mandate sets out technical standards, compliance timelines, and obligations for both senders and receivers of invoices. This formalisation marks a significant shift for Luxembourg businesses, requiring system upgrades and connectivity to the Peppol network infrastructure ahead of the implementation deadline.
Belgium Approves Dual Near Real-Time VAT E-Reporting for 2028
Belgium has approved a dual near real-time VAT e-reporting regime set to take effect in 2028. The system will require businesses to submit structured transaction data to tax authorities in near real-time through two complementary reporting channels, enhancing VAT compliance monitoring and reducing fraud. The framework builds on Belgium's existing mandatory e-invoicing infrastructure and aligns with EU ViDA (VAT in the Digital Age) objectives. Businesses will need to adapt their ERP and accounting systems to meet the new dual-stream reporting requirements ahead of the 2028 deadline.
Bad Debts and “Pass-Through” Items – Proof and Invoicing Matter
This article examines VAT treatment of bad debts and pass-through items, highlighting that proper documentation and invoicing are critical for businesses seeking VAT relief or recovery. It explores the evidentiary requirements tax authorities impose when a supplier claims a bad debt VAT adjustment, and clarifies how pass-through costs must be invoiced to preserve correct VAT treatment. Errors in invoicing methodology or insufficient proof can result in denied VAT recovery or unexpected VAT liabilities, making procedural compliance as important as substantive entitlement.
Lahore ASO seizes smuggled cigarettes worth Rs28.36m in Shahdara
Pakistani customs authorities from the Lahore Anti-Smuggling Organization (ASO) seized smuggled cigarettes valued at Rs28.36 million in the Shahdara area. The enforcement action highlights ongoing efforts to combat illicit tobacco trade, which undermines customs duties and excise tax revenues. Smuggled cigarettes bypass import tariffs and domestic taxes, representing significant revenue losses for Pakistan's Federal Board of Revenue. Such seizures are part of broader customs enforcement initiatives targeting contraband goods that evade the country's tax and duties framework.
Can Income Tax Additions Be Made Solely on Third-Party Evidence? ITAT Mumbai Says No – A Landmark Judgment Every Taxpayer Must Know
The Income Tax Appellate Tribunal (ITAT) Mumbai has issued a significant ruling clarifying that tax additions cannot be made solely on the basis of third-party evidence without giving the taxpayer an opportunity to cross-examine the source. The judgment reinforces principles of natural justice in Indian tax proceedings, establishing that assessments must be supported by corroborating evidence beyond unverified third-party statements. This landmark decision has broad implications for taxpayers facing scrutiny assessments, limiting the ability of tax authorities to rely exclusively on external evidence when making income additions without proper procedural safeguards.
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