Tax News Daily
The latest tax news from around the world, summarised and tagged for tax professionals. Updated twice daily.
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Partner’s Remuneration Under Section 44ADA: Delhi ITAT Opens the Door, But Is the Debate Really Over?
The Delhi Income Tax Appellate Tribunal has ruled on the deductibility of partner remuneration under Section 44ADA of India's Income Tax Act, which governs presumptive taxation for professionals. The ruling addresses whether a firm can claim partner remuneration as a deduction when its professional income is assessed under the presumptive taxation scheme. While the ITAT has opened the door to allowing such deductions, the article highlights that the legal debate remains unresolved, with conflicting interpretations still possible. This has significant implications for professional partnerships in India operating under the presumptive tax regime.
EU Excise Duty Law: Key Rulings on Direct Delivery, Security Deposits, and Formal Requirements
A series of EU Court of Justice rulings has clarified key aspects of excise duty law, addressing direct delivery arrangements, security deposit requirements, and formal compliance obligations under the EU Excise Duty Directive. The rulings provide important guidance for businesses moving excise goods across EU member states, particularly regarding when and how tax obligations arise, the validity of security guarantees, and the consequences of non-compliance with formal procedural requirements. These decisions have direct implications for manufacturers, importers, and logistics operators managing excise duty suspended movements within the EU single market.
Bloomberg: Amgen Settles Investor Suit Over Tax Liability for $74 Million
Amgen has settled an investor lawsuit for $74 million related to disclosures about its tax liabilities. The case centered on allegations that the biopharmaceutical company misled shareholders regarding the extent of its tax exposure, particularly concerning transfer pricing disputes with the IRS. The settlement highlights the intersection of tax controversy and securities litigation, where large corporate tax positions can carry significant investor disclosure obligations. This case is notable for practitioners advising on tax risk disclosure and the potential downstream liability when transfer pricing or other tax disputes materialize into material financial exposures for publicly traded companies.
Policy paper: Changes to reporting of benefits in kind from April 2027
HMRC has published a policy paper outlining changes to the reporting of benefits in kind (BIK) from April 2027. From that date, employers will be required to report and pay Income Tax and National Insurance Contributions on most benefits in kind via payroll software in real time, rather than through the existing P11D process. This mandatory payrolling of benefits represents a significant shift in employer compliance obligations, aiming to simplify reporting and improve accuracy. Employers and payroll professionals will need to update systems and processes ahead of the implementation deadline.
Delhi HC Declines Plea Against 18% Tax on Diagnostic Services, Directs Matter to GST AAR
The Delhi High Court has declined to entertain a petition challenging the 18% GST levy on diagnostic services, instead directing the petitioner to approach the GST Authority for Advance Rulings (AAR). The court's decision channels the dispute through the prescribed statutory mechanism rather than allowing direct judicial intervention. This ruling is significant for the diagnostics and healthcare sector, where providers have contested the GST classification and applicable tax rates on their services. Practitioners advising healthcare clients should note that AAR remains the appropriate first forum for resolving GST rate classification disputes before escalating to higher courts.
Karachi consumers pay over Rs26bn income tax through electricity bills in FY26
Karachi electricity consumers have paid over Rs26 billion in income tax through their electricity bills during the first months of FY2026, highlighting the significant use of utility bills as a withholding tax collection mechanism in Pakistan. The electricity bill serves as a vehicle for advance income tax collection, with rates varying based on consumption levels and taxpayer status. This mechanism has become a major revenue source for Pakistan's Federal Board of Revenue, reflecting the government's strategy of leveraging utility payments to broaden the tax base and improve compliance among otherwise hard-to-reach individual taxpayers.
EV charging taxability: What public charging operators need to know
Public EV charging operators face complex sales tax questions as the sector grows. The taxability of EV charging varies significantly by state, with some jurisdictions treating it as a sale of electricity (a utility subject to specific tax rules), others as a service, and some yet to issue clear guidance. Operators must determine whether they are selling tangible personal property or a service, how rates are metered (per kWh vs. per minute), and whether exemptions apply. This creates compliance challenges for multi-state operators who must track evolving state-by-state rules to avoid under- or over-collection of sales tax.
Press Release: In-House Tax Forum welcomes Belgium’s VAT e-reporting step — and urges a move to supplier-only reporting
The In-House Tax Forum has issued a press release welcoming Belgium's decision to introduce VAT e-reporting obligations, marking a significant step in the country's digital tax compliance journey. However, the Forum urges Belgian authorities to adopt a supplier-only reporting model rather than requiring both buyers and sellers to submit transaction data, arguing this would reduce administrative burden on businesses. The position highlights ongoing debate across Europe about the optimal design of e-reporting mandates, as Belgium joins other EU member states implementing real-time or periodic digital VAT reporting frameworks.
TN Rice Millers Seek Removal of 5% GST on Rice Ahead of Upcoming Council Meeting
Tamil Nadu rice millers are lobbying for the removal of the 5% GST on rice ahead of an upcoming GST Council meeting. The industry argues the tax burdens producers and consumers of a staple food commodity. This represents an active tax policy advocacy effort targeting a specific GST rate change, with potential implications for the agricultural and food processing sectors if the Council acts on the request. The outcome could affect GST classifications for rice and similar staple goods across India.
MoS Finance Pankaj Chaudhary: GST Rate on 36 Life-Saving Medicines Reduced to Nil
India's Minister of State for Finance Pankaj Chaudhary confirmed that GST rates on 36 life-saving medicines have been reduced to nil. This is a concrete regulatory update reflecting a GST Council decision with immediate practical impact on the pharmaceutical sector and patients. The rate reduction applies to critical medications, lowering the tax burden on essential healthcare products. Businesses in the pharmaceutical supply chain will need to update invoicing and compliance processes to reflect the new nil-rated status for these medicines.
Nepal: VAT rules introduced for rideshare platforms
Nepal has introduced VAT rules specifically targeting rideshare platforms, establishing compliance obligations for the digital ride-hailing sector. The new guidance clarifies how VAT applies to these services, reflecting a broader global trend of extending consumption tax frameworks to gig economy and platform-based businesses. This development is significant for rideshare operators active in Nepal, as well as for international platforms potentially caught by the rules. Businesses will need to assess registration thresholds, invoicing requirements, and remittance obligations under the updated framework.
Nepal Introduces VAT Rules for Ride-Sharing Digital Platforms
Nepal has introduced VAT rules specifically targeting ride-sharing digital platforms, establishing a regulatory framework for how these services will be taxed. The new rules outline VAT obligations for digital platform operators facilitating ride-sharing services, reflecting a broader global trend of applying consumption taxes to the gig and sharing economy. The measures are set to take effect in 2026, giving platforms time to adapt their compliance systems. This development signals Nepal's effort to modernize its VAT framework to capture revenue from rapidly growing digital marketplace services operating within its jurisdiction.
Germany Signals the Future of Tax Administration: A 26‑Point Action Plan Built on the E‑Invoice
Germany has unveiled a 26-point action plan positioning e-invoicing as the cornerstone of its future tax administration strategy. The plan outlines how mandatory e-invoicing infrastructure will be leveraged to modernize tax compliance, reduce fraud, and streamline reporting obligations for businesses. The initiative signals a broader shift toward real-time or near-real-time tax data exchange between businesses and authorities, building on the existing B2B e-invoicing mandate that took effect in January 2025. The action plan has significant implications for how German tax administration will evolve, making it a key development for businesses operating in Germany.
Punjab & Haryana HC Invalidates GST Show Cause Notice Prepared Using AI Tool
The Punjab & Haryana High Court has invalidated a GST show cause notice on the grounds that it was generated using an AI tool without adequate human review, raising significant concerns about the use of automated systems in tax enforcement proceedings. The ruling has important implications for tax authorities and practitioners, signalling that AI-drafted notices must meet standards of proper application of mind. This decision sits at the intersection of tax controversy and tax technology, potentially reshaping how GST enforcement notices are issued across India.
Complying with Germany’s E-Invoicing Mandate Without an Expensive ERP
This article addresses practical compliance strategies for Germany's e-invoicing mandate for businesses that lack expensive ERP systems. It explores cost-effective tools and approaches that smaller companies can use to meet the structured e-invoice requirements under Germany's B2B mandate, which requires businesses to be capable of receiving e-invoices in formats such as XRechnung or ZUGFeRD. The piece highlights that compliance does not necessarily require large-scale ERP investment, pointing practitioners toward alternative software solutions and workflows that can satisfy the regulatory requirements without significant capital expenditure.
CBP Protests and Post-Entry Corrections
This article covers the process for filing protests and making post-entry corrections with U.S. Customs and Border Protection (CBP). It explains how importers can challenge CBP decisions on duty assessments, classification, and valuation through formal protest mechanisms under 19 U.S.C. § 1514, as well as post-summary corrections and prior disclosure procedures. The piece outlines deadlines, eligible issues, and strategic considerations for importers seeking duty refunds or contesting adverse customs determinations, making it directly relevant to trade compliance practitioners managing customs duty disputes and entry correction workflows.
Section 338 tariffs on Canada: What businesses may be missing beyond the headline categories
This article examines Section 338 tariffs imposed on Canadian imports, highlighting aspects that businesses may be overlooking beyond the widely publicized headline categories. It explores the broader scope of affected goods and sectors, helping companies identify exposure they may not have considered. The piece provides practical guidance for businesses navigating the tariff landscape, including compliance considerations and strategic planning around supply chains and cost structures affected by the US-Canada trade measures. It serves as a practitioner-focused resource for understanding the full impact of these tariffs on cross-border trade operations.
Seven Form 990 Red Flags CPAs Should Not Ignore
CPAs reviewing Form 990 filings for tax-exempt organizations should watch for seven key red flags that may signal compliance issues or trigger IRS scrutiny. These include inconsistencies in reported revenue, excessive compensation to officers, related-party transactions, misreported program service expenses, failure to disclose foreign accounts or activities, inaccurate governance disclosures, and misclassification of employees versus independent contractors. Identifying these issues proactively helps nonprofits avoid penalties, potential loss of tax-exempt status, and costly IRS examinations. The guidance is particularly relevant for CPAs advising nonprofit clients on annual filing obligations and internal controls.
Avi-Yonah: Taxation and Deglobalization
Professor Reuven Avi-Yonah examines the intersection of taxation and deglobalization, exploring how the retreat from global economic integration is reshaping international tax frameworks. The analysis likely addresses how rising trade barriers, reshoring trends, and geopolitical fragmentation challenge established international tax norms, including transfer pricing rules and the OECD's Pillar Two framework. As supply chains restructure and multinational enterprises reconfigure their operations, tax policy must adapt to a world where cross-border activity is increasingly constrained by non-tax factors. The piece contributes to academic debate on whether current international tax rules remain fit for purpose in a deglobalizing environment.
D.C. Circuit Affirms Sentence for Trump Tax Return Leaker
The U.S. Court of Appeals for the D.C. Circuit has affirmed the criminal sentence imposed on Charles Littlejohn, the IRS contractor who illegally leaked former President Donald Trump's confidential tax returns, along with tax data of thousands of other wealthy Americans. The ruling upholds the lower court's five-year prison sentence. The case raises significant issues around taxpayer privacy protections, IRS data security, and the safeguarding of confidential tax information held by government agencies, with broader implications for trust in the confidentiality of tax filings submitted to the IRS.
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