Tax News Daily
The latest tax news from around the world, summarised and tagged for tax professionals. Updated twice daily.
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SII Rolls Out Optional VAT Withholding for the Agri-Services Sector
Chile's Internal Revenue Service (SII) has introduced an optional VAT withholding mechanism specifically targeting the agricultural services sector. Under the scheme, qualifying businesses in agri-services can elect to have VAT withheld at source, shifting the remittance obligation away from the supplier to the purchaser or a designated withholding agent. This voluntary regime aims to improve VAT compliance and reduce evasion in a sector historically prone to tax gaps. Businesses in the agricultural services industry must assess whether opting into the withholding system benefits their cash flow and administrative burden.
Norway — Tax Commission Proposes to Merge Reduced VAT Rates and Broaden the VAT Base
Norway's Tax Commission has put forward proposals to simplify the country's VAT rate structure by merging existing reduced VAT rates into a single lower rate while simultaneously broadening the VAT base. Currently Norway applies multiple reduced rates across sectors such as food, transport, and culture. The commission argues that consolidating rates and eliminating exemptions would improve economic efficiency and increase VAT revenues. The proposals are likely to face scrutiny from affected industries and will require parliamentary debate before any legislative changes are enacted.
Accredited official statistics: Inheritance Tax liabilities statistics
HMRC is releasing accredited official statistics on Inheritance Tax (IHT) liabilities in the UK. These statistics provide data on the number of estates liable for IHT, total tax liabilities, and trends over time. With recent policy changes including frozen nil-rate bands and proposed reforms to agricultural and business property reliefs, IHT has become a focal point in UK tax policy debate. The statistics serve as an essential resource for policymakers, advisers, and researchers assessing the fiscal and distributional impact of inheritance taxation.
Should Sri Lanka Re-Introduce a Tax Ombudsman?
This article examines whether Sri Lanka should reinstate a Tax Ombudsman, a role previously abolished, to improve taxpayer rights and dispute resolution mechanisms. It explores the potential benefits of an independent oversight body to address grievances between taxpayers and the revenue authority. The discussion is relevant given Sri Lanka's ongoing efforts to reform its tax administration and restore public trust in the system. A Tax Ombudsman could provide an accessible, impartial avenue for resolving complaints, reducing litigation, and improving compliance. The article weighs institutional, fiscal, and governance considerations in recommending a path forward for Sri Lanka's tax administration reform.
Former Tax Preparer Ordered to Repay $1.4M in ERC Tax Fraud Case in Mississippi
A former tax preparer in Mississippi has been ordered to repay $1.4 million following a conviction related to Employee Retention Credit (ERC) fraud. The case involves fraudulent ERC claims submitted on behalf of clients, exploiting the pandemic-era payroll tax relief program. This enforcement action reflects the IRS and Department of Justice's sustained campaign against ERC fraud, which has cost the federal government billions. The repayment order underscores the serious financial and criminal consequences facing tax professionals who file false or inflated ERC claims.
KNAV Launches In-House AI Platform for Its Assurance, Tax, and Advisory Teams
KNAV, a professional services firm, has launched a proprietary in-house AI platform designed to support its assurance, tax, and advisory teams. The platform aims to enhance efficiency and accuracy across service lines, including tax compliance and advisory functions. By developing the tool internally, KNAV seeks to tailor AI capabilities specifically to its workflows, data security requirements, and client needs. The move reflects a broader trend of accounting and tax firms investing in AI-driven automation to streamline tax processes, improve accuracy in filings, and deliver faster insights to clients across complex multi-jurisdictional engagements.
Gujarat HC: Transitional VAT Credit Carried Forward to GST Not Eligible for Cash Refund
The Gujarat High Court has ruled that transitional VAT credit carried forward into the GST regime is not eligible for a cash refund. The case addresses a key transitional issue from India's 2017 shift from VAT to GST, clarifying that such legacy credits, while transferable as electronic credit ledger balances for offsetting future GST liabilities, cannot be converted into direct cash refunds. The judgment has significant implications for businesses that accumulated VAT credits prior to GST implementation and were seeking monetary refunds for unutilised transitional credit balances.
Mexico Tax Court Clarifies Contributions and Dividends
Mexico's Tax Court has issued a ruling clarifying the tax treatment of capital contributions and dividends, providing guidance on how these transactions are characterized for tax purposes. The decision addresses distinctions between contributions to equity and dividend distributions, which has significant implications for corporate taxpayers in Mexico. The clarification helps resolve ambiguity around when payments qualify as dividends subject to withholding tax versus contributions that may receive different treatment. This ruling is relevant for multinationals operating in Mexico and for structuring intercompany transactions involving Mexican entities.
UK: HMRC Consults on International Controlled Transactions Schedule
HMRC has launched a consultation on a new International Controlled Transactions Schedule, which would require UK businesses to report detailed information about cross-border transactions with related parties. The proposal aims to enhance transparency and improve HMRC's ability to assess transfer pricing risks. The schedule would capture data on intercompany dealings including loans, services, and goods transfers between connected entities. This initiative aligns with broader international efforts to strengthen transfer pricing compliance and could significantly increase reporting obligations for multinational groups with UK operations, affecting how businesses document and disclose controlled transactions to UK tax authorities.
New AD/CVD Case Filed Against Glyphosate from China
A new Antidumping and Countervailing Duty (AD/CVD) petition has been filed against glyphosate imports from China. The case targets the popular herbicide, alleging unfair pricing and subsidization by Chinese producers. If duties are imposed, importers of glyphosate from China face significantly higher costs. Companies relying on Chinese-sourced glyphosate should monitor the investigation timeline, assess supply chain exposure, and consider sourcing alternatives. AD/CVD proceedings can result in retroactive duty liability, making early compliance review critical for affected importers and downstream agricultural and chemical industry buyers.
The U.S. Declined to Renew USMCA – What Importers Must Do Now
The U.S. has declined to renew USMCA preferential trade provisions, creating significant compliance risks for importers relying on duty-free treatment under the agreement. Importers must urgently review origin determinations, tariff classifications, and supply chain documentation to assess exposure. Goods that previously qualified for USMCA benefits may now face standard MFN tariff rates, increasing landed costs substantially. Companies should audit existing certificates of origin, reassess sourcing strategies, and prepare for potential duty liability on non-compliant shipments. Legal and trade compliance teams should act immediately to mitigate financial and operational disruption.
EAPA Update: CBP Finds Evasion Despite Full Cooperation
U.S. Customs and Border Protection (CBP) has issued an Enforce and Protect Act (EAPA) ruling finding country-of-origin evasion in a solar panel import case, despite the importer's full cooperation during the investigation. The case highlights that cooperation alone does not shield importers from evasion findings if underlying supply chain facts indicate circumvention of antidumping or countervailing duties. Solar importers face heightened scrutiny and must ensure robust origin documentation and transshipment controls. The ruling underscores CBP's aggressive enforcement posture and the serious duty liability consequences of EAPA determinations.
The Tax Adviser: IRS outlines AI risks, Circular 230 duties for tax practitioners
The IRS has issued guidance outlining the risks associated with artificial intelligence use by tax practitioners, alongside clarifying professional responsibilities under Circular 230. The guidance addresses concerns that AI-generated tax advice or filings may contain errors, hallucinations, or unsupported positions, potentially exposing practitioners to disciplinary action. Tax professionals are reminded of their due diligence obligations when relying on AI tools, including verifying outputs and maintaining professional judgment. The IRS signals increased scrutiny of AI-assisted tax practice, placing responsibility firmly on practitioners to ensure accuracy and compliance regardless of the technology employed in preparing advice or returns.
Legal Scholarship Network Publishes New Issue of Tax Law & Policy eJournal
The Legal Scholarship Network has published another new issue of the Tax Law & Policy eJournal, continuing its series of academic publications on tax law and policy. The journal aggregates scholarly articles and working papers from tax law academics, providing a resource for legal researchers and practitioners interested in tax policy developments. The publication supports academic engagement with current and emerging tax law issues across multiple jurisdictions and policy areas.
Guidance: Fulfilment House Due Diligence Scheme registered businesses list
HMRC publishes and maintains the list of businesses registered under the Fulfilment House Due Diligence Scheme (FHDDS), which targets overseas sellers storing goods in UK fulfilment houses. The scheme requires fulfilment houses to conduct due diligence on their overseas clients to combat VAT fraud and customs duty evasion by non-UK e-commerce sellers. This registered businesses list supports compliance monitoring and transparency in cross-border e-commerce supply chains, forming part of HMRC's broader strategy to protect UK VAT and customs revenues from offshore marketplace sellers.
Serbia e-Delivery: What Businesses Need to Know Ahead of the B2B Phase
Serbia is advancing its e-delivery mandate with a forthcoming B2B phase that businesses must prepare for. The initiative builds on existing B2G requirements and extends electronic document exchange obligations to business-to-business transactions. Companies operating in Serbia need to understand the technical and compliance requirements, including system integration, timelines, and registration procedures. The rollout reflects Serbia's broader digitalization agenda for tax and invoicing administration. Businesses should assess their current ERP and invoicing infrastructure to ensure compatibility with the Serbian e-delivery framework ahead of the mandatory implementation deadline.
Pakistan Customs posts 33pc increase in revenue collection
Pakistan Customs has recorded a 33% increase in revenue collection, signaling stronger enforcement and trade activity at the border. The surge reflects improved customs administration, potentially driven by enhanced monitoring, updated duty structures, or increased import volumes. This performance boost is significant for Pakistan's fiscal position, as customs duties represent a key component of federal tax receipts. The increase may also reflect stricter compliance measures and reduced smuggling. Strong customs revenue helps offset broader fiscal pressures and supports the government's revenue mobilization targets under ongoing economic reform programs.
GST Day 2026: Telangana Chief Justice Calls for an Amnesty Scheme and Online Dispute Resolution Under GST
On GST Day 2026, Telangana's Chief Justice called for the introduction of an amnesty scheme and an online dispute resolution mechanism under India's GST framework. The remarks highlight ongoing concerns about the volume of GST litigation and the need to reduce the burden on courts and taxpayers alike. An amnesty scheme would allow taxpayers to settle outstanding disputes with reduced penalties, while an online dispute resolution platform could streamline and expedite the resolution process, improving overall GST compliance and administration efficiency across India.
Council Tax: practice notes
This article covers UK Council Tax practice notes published by the UK government, providing official guidance on the administration and application of Council Tax. Council Tax is a local taxation system in England, Scotland, and Wales levied on domestic properties. The practice notes serve as authoritative reference material for local authorities and practitioners dealing with Council Tax assessments, exemptions, discounts, and liability. These notes help ensure consistent application of Council Tax rules across jurisdictions and address specific scenarios and edge cases in Council Tax administration.
Punjab Revenue Authority collects record Rs367bn tax in FY 2025–26
Punjab Revenue Authority (PRA) has achieved a record tax collection of Rs367 billion in fiscal year 2025–26, marking a significant milestone for the provincial revenue body in Pakistan. The PRA primarily administers sales tax on services in Punjab province. This record collection reflects improved compliance efforts, broadening of the tax base, and enhanced enforcement measures by the authority. The achievement underscores growing provincial fiscal capacity and the PRA's expanding role in Pakistan's overall tax revenue landscape.
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