Tax News Daily
The latest tax news from around the world, summarised and tagged for tax professionals. Updated twice daily.
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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 2.4 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.
Accredited official statistics: Table 2.1 Number of individual Income Tax payers
Official UK government accredited statistics detailing the number of individual Income Tax payers, broken down by marginal rate, gender, and age. Published by HMRC, this dataset provides a demographic profile of the UK taxpaying population, highlighting how income tax participation varies across different groups. The data is essential for understanding the reach and structure of the UK personal income tax system, informing policy discussions around tax thresholds, gender pay gaps, and age-related income distribution among taxpayers.
Accredited official statistics: Table 2.5a Income Tax liabilities by income range for historic years
Official UK government accredited statistics presenting historical Income Tax liabilities broken down by income range, covering earlier tax years. Published by HMRC, this dataset complements current-year liability statistics by providing a longitudinal view of how income tax burdens across different income bands have evolved over time in the UK. The historical data enables trend analysis of the UK personal income tax system, supporting research into changes in tax distribution, policy impacts, and shifts in the income profile of the taxpaying population.
CBDT Notifies Tax Exemption for BBN Development Authority Under Section 10(46)
India's Central Board of Direct Taxes (CBDT) has issued a notification granting tax exemption to the BBN (Bodoland Territorial Area Districts) Development Authority under Section 10(46) of the Income Tax Act. This provision exempts specified income of notified bodies, authorities, boards, or commissions established for regulatory or administrative purposes. The notification specifies the nature of income eligible for exemption, ensuring the authority's qualifying receipts are not subject to income tax. Such exemptions are typically granted to government-established entities performing public functions, reflecting India's policy of relieving statutory bodies from tax burdens on income directly related to their designated activities.
MDDP Webinar: B2B Reclassification into Employment: Dispute, Penalties and Tax Impact (VAT & Personal) (July 15)
A webinar hosted by MDDP examining the tax consequences when B2B contractor arrangements are reclassified as employment relationships. The session covers dispute resolution processes, applicable penalties, and the dual tax impact spanning both VAT and personal income tax. Reclassification can trigger VAT deregistration, reverse previously reclaimed input tax, and create personal income tax and payroll tax liabilities for the engaging party. This is a significant compliance risk area, particularly in jurisdictions with active labor and tax authority enforcement of disguised employment, making it relevant for businesses relying heavily on self-employed contractors.
AICPA Expresses Support for Bill to End Tax Penalties on American Hostages
The AICPA has expressed support for legislation aimed at eliminating tax penalties imposed on American hostages and wrongfully detained citizens. The bill seeks to ensure that individuals held captive abroad are not penalized for failing to meet U.S. tax obligations during their detention. The AICPA argues it is unjust for hostages to face IRS penalties, interest, or compliance failures due to circumstances entirely beyond their control. The organization is urging Congress to pass the measure, highlighting the need for compassionate tax policy that accounts for extraordinary personal hardship faced by Americans detained in foreign countries.
Gifted a House? How Transferring Property (Cheaply) Can Also Transfer Tax Debt to Someone Else: A Comprehensive Guide to Section 160 of the Income Tax Act
A comprehensive guide to Section 160 of Canada's Income Tax Act, which allows the CRA to hold recipients of property transfers jointly liable for the transferor's tax debt. The article explains how gifting or selling property below fair market value — including to spouses, children, or relatives — can expose the recipient to the original owner's outstanding tax obligations. Key topics include the conditions triggering Section 160 liability, how the CRA assesses transferees, available defenses, and strategies to mitigate risk when transferring real estate or other assets at undervalue.
Guidance: Gains on foreign life insurance policies (Self Assessment helpsheet HS321)
This UK HMRC Self Assessment helpsheet (HS321) provides guidance on reporting gains from foreign life insurance policies for personal income tax purposes. UK resident policyholders who hold foreign life insurance bonds may be subject to chargeable event gains, which are taxed as income. The helpsheet explains how to calculate the gain, apply top-slicing relief, and report the amounts correctly on a Self Assessment tax return. It is directly relevant to individuals with offshore investment bonds and their personal income tax obligations in the UK.
Hawaii’s New ‘Millionaire Tax’ Rivals Top Tax Rate Among Other States
Hawaii has enacted a new 'millionaire tax' that places it among the states with the highest top marginal income tax rates in the United States. The surcharge targets high-income earners and pushes Hawaii's top rate to a level rivaling other high-tax states. The move reflects ongoing debate about wealth taxation at the state level, with proponents arguing it funds public services while critics warn of potential outmigration of wealthy residents and economic impacts. The development highlights the broader trend of states pursuing progressive income tax policies independently of federal tax direction.
Supporters of Phasing Out Missouri Income Tax Won’t Talk Specifics Ahead of Public Vote
Supporters of a Missouri ballot initiative to phase out the state's income tax are declining to provide specifics about how lost revenue would be replaced ahead of a public vote. The proposal would gradually eliminate Missouri's personal income tax, a significant source of state funding. Critics and fiscal analysts express concern about the lack of a clear replacement revenue mechanism, raising questions about impacts on public services. The initiative reflects a broader conservative push in several US states to eliminate income taxes entirely, often favoring consumption-based taxes as alternatives.
Guidance: Approved offshore reporting funds
HMRC guidance on approved offshore reporting funds, which are funds that have elected to report their income to investors rather than distributing it, allowing UK investors to be taxed on reported income at income tax rates rather than capital gains rates. This is relevant to UK personal and corporate taxpayers holding interests in offshore funds, ensuring proper tax treatment and compliance with UK tax rules on offshore investment vehicles.
Temporary Repatriation Facility (TRF): how it works and what to include in your 2025-26 tax return
This article explains the UK's Temporary Repatriation Facility (TRF), a regime allowing individuals with foreign income or gains previously sheltered under the remittance basis to bring those funds into the UK at a reduced tax rate. The piece covers how the TRF operates, eligibility criteria, the applicable tax rates, and practical guidance on what taxpayers need to include in their 2025-26 self-assessment tax returns. It is aimed at UK-resident non-domiciled individuals considering whether to take advantage of the facility before it closes, helping them understand reporting obligations and planning considerations.
Venture Capital Schemes Manual
HMRC's Venture Capital Schemes Manual provides detailed guidance on UK tax-advantaged investment schemes including the Enterprise Investment Scheme (EIS), Seed Enterprise Investment Scheme (SEIS), Venture Capital Trusts (VCT), and Social Investment Tax Relief (SITR). These schemes offer significant income tax and capital gains tax reliefs to investors in qualifying smaller companies, and the manual covers eligibility conditions, compliance requirements, and administrative procedures for both investors and companies.
Impact assessment: Child Benefit information for Self Assessment tax return
An HMRC impact assessment examining the integration of Child Benefit data into the Self Assessment tax return process. This relates to the High Income Child Benefit Charge (HICBC), which requires taxpayers earning over £50,000 to repay some or all Child Benefit received. The assessment evaluates the administrative and compliance implications of pre-populating or sharing Child Benefit information within Self Assessment returns to improve accuracy and reduce taxpayer burden.
Guidance: Digital platform reporting: service availability and issues
UK HMRC guidance covering service availability and known issues relating to the digital platform reporting service. Under DAC7-aligned UK rules, digital platforms are required to report seller income data to HMRC. This operational guidance helps platform operators and their advisers stay informed of system outages, technical issues, or service interruptions affecting submission of mandatory reports, ensuring compliance with the digital platform reporting obligations introduced to improve tax transparency on gig economy and marketplace income.
MDDP Webinar: B2B Reclassification into Employment: Dispute, Penalties and Tax Impact (VAT & Personal) (July 15)
MDDP is hosting a webinar on July 15 addressing the reclassification of B2B contractor relationships into employment in Poland. The session covers the tax implications of such reclassifications, including VAT consequences when a previously VAT-registered independent contractor is deemed an employee, personal income tax impacts, and potential penalties arising from disputes with tax authorities. The topic is increasingly relevant as Polish tax authorities scrutinise self-employment arrangements. The webinar targets businesses and advisers navigating the legal, tax, and social security risks associated with contractor-to-employee reclassification.
CBDT Tightens Scrutiny of Unexplained Income Additions: Fresh Directions Issued on Sections 68 to 69D and Section 115BBE
India's Central Board of Direct Taxes (CBDT) has issued fresh directions tightening scrutiny of unexplained income under Sections 68 to 69D of the Income Tax Act, along with Section 115BBE. These provisions target unexplained cash credits, investments, expenditures, and other assets where taxpayers cannot satisfactorily explain the source of funds. The new directions aim to standardize assessment procedures, ensure consistent application of these sections, and strengthen enforcement against tax evasion through undisclosed income. Section 115BBE imposes a higher flat tax rate on such unexplained income, making compliance critical for taxpayers with unverified financial transactions.
CBDT Mandates Upload of Foreign Assets and Income Data in AIS and Form 26AS Under AEOI
India's CBDT has mandated the upload of foreign assets and income data into the Annual Information Statement (AIS) and Form 26AS under the Automatic Exchange of Information (AEOI) framework. This directive enhances transparency by ensuring foreign financial data received through international tax cooperation agreements is reflected in taxpayer-facing portals. The move aims to improve compliance monitoring for Indian residents holding overseas assets or earning foreign income, enabling tax authorities to cross-verify self-reported disclosures against internationally sourced data, thereby strengthening India's efforts to combat tax evasion involving offshore assets.
Apply to pay voluntary Class 3 National Insurance contributions for periods abroad
This UK government guidance covers the process for individuals to apply to pay voluntary Class 3 National Insurance contributions for periods spent living or working abroad. Class 3 NI contributions allow individuals to fill gaps in their National Insurance record, which can affect entitlement to the State Pension and other benefits. The guidance outlines eligibility criteria, how to apply, deadlines, and the rates applicable. This is directly relevant to UK expatriates and those who have lived abroad seeking to maintain or complete their NI contribution record for pension purposes.
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