Tax News Daily
The latest tax news from around the world, summarised and tagged for tax professionals. Updated twice daily.
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Bloomberg: AMC Theater’s Valuation Was Excessive, Says Arizona Tax Court
An Arizona Tax Court has ruled that AMC Theater's property valuation was excessive, in a case with implications for commercial real estate tax assessments. The decision challenges the assessed value used to calculate property taxes owed by the cinema chain, suggesting local tax authorities overestimated the property's worth. Such rulings can significantly impact municipal tax revenues and set precedents for how entertainment venue properties are valued for tax purposes. The case highlights ongoing disputes between large commercial property owners and local tax assessors over fair market valuation methodologies in the context of property tax obligations.
IEEPA Tariff Refund Update: CIT Will Order Reliquidation of Some Finally Liquidated Entries
The Court of International Trade (CIT) is set to order reliquidation of certain finally liquidated entries related to IEEPA tariffs, potentially resulting in refunds for importers. This development follows legal challenges to tariffs imposed under the International Emergency Economic Powers Act (IEEPA), with the court addressing how Customs and Border Protection must handle entries that have already been liquidated. Importers affected by these tariffs should monitor reliquidation orders closely, as the ruling could open pathways to recover duties paid on qualifying entries during the relevant period.
Court Upholds EUR 143,844 VAT Refund Claim
A court has upheld a VAT refund claim of EUR 143,844, affirming the taxpayer's right to recover the disputed amount. The ruling reinforces procedural and substantive VAT recovery rights, potentially offering guidance for businesses pursuing similar refund claims. The decision highlights the importance of properly documented VAT positions and the availability of judicial recourse when tax authorities contest refund applications. Businesses operating in the jurisdiction should take note of the court's reasoning as it may set a precedent for future VAT refund disputes and strengthen the legal framework supporting input tax credit and refund entitlements.
VAT Invoices, Formal Defects and the Right to Deduct: The Evolution of the CJEU’s Case Law
This article examines the evolution of Court of Justice of the European Union (CJEU) case law regarding VAT invoices with formal defects and their impact on the right to deduct input VAT. It explores how the CJEU has progressively distinguished between substantive requirements, which are essential for VAT deduction rights, and formal requirements, where defects do not necessarily forfeit deduction rights if the underlying transaction is genuine. The analysis covers key judgments shaping how tax authorities across EU member states must treat invoices with technical errors or missing information when assessing taxpayers' deduction claims.
Minn. Court Denies Religious Tax Break For Leased Property
A Minnesota court has denied a religious organization's claim for a property tax exemption on leased property. The ruling addresses the boundaries of religious tax exemptions under state law, finding that the leased nature of the property disqualified it from the tax break typically available to religious entities. The case highlights the complex intersection of property tax exemption rules and religious organizations' use of non-owned real estate, with the court determining that the statutory requirements for the exemption were not met in this particular ownership and leasing arrangement.
Madras HC: Tax Officers Need Not Conclusively Prove Fraud Before Issuing GST SCN U/S 74
The Madras High Court has ruled that tax officers are not required to conclusively prove fraud before issuing a Show Cause Notice (SCN) under Section 74 of the GST Act. The court clarified that at the SCN stage, authorities only need reasonable grounds to suspect fraud, wilful misstatement, or suppression of facts. This ruling has significant implications for GST enforcement in India, lowering the evidentiary threshold for initiating proceedings under Section 74, which carries higher penalties than Section 73. The decision affects taxpayers facing extended limitation periods and penalties associated with fraud-related GST disputes.
Large business compliance 2026: key insights from HMRC and Public Accounts Committee reports
Analysis of HMRC's large business compliance landscape for 2026, drawing on insights from HMRC reports and the Public Accounts Committee. The article examines how HMRC is intensifying scrutiny of large businesses, including its compliance yield targets, risk assessment approaches, and evolving relationship with large taxpayers. It highlights key themes such as tax gap reduction efforts, HMRC resource constraints, and expectations placed on large businesses to demonstrate tax transparency and cooperative compliance. The findings have significant implications for how large corporates manage their tax risk, governance frameworks, and engagement strategies with HMRC.
Austria: Court denies import VAT refund on intra-community supplies
An Austrian court has denied an import VAT refund claim related to intra-community supplies. The case examines the intersection of import VAT rules and intra-community supply provisions within the EU VAT framework, with the court ruling against the taxpayer's refund entitlement. This decision has implications for businesses engaged in cross-border transactions within the EU that involve goods imported into Austria and subsequently supplied to other member states. Companies relying on import VAT recovery mechanisms in similar supply chain structures may need to reassess their VAT positions in light of this Austrian judicial ruling.
ECJ/General Court VAT Cases – Pending cases
This article provides an overview of pending VAT cases before the European Court of Justice (ECJ) and General Court. These cases cover a range of VAT-related disputes across EU member states, addressing issues such as input tax deduction, taxable transactions, exemptions, and procedural matters. The pending cases represent ongoing legal challenges that could shape VAT interpretation and application across the EU. Monitoring these cases is critical for businesses and tax advisors operating within the EU, as ECJ rulings carry binding precedent and can significantly influence national VAT legislation and compliance obligations.
Title Co. Can't Keep Tax Refund, Wash. Panel Rules 2nd Time
A Washington state appellate panel has ruled for the second time that a title company cannot retain a tax refund. The case involves a dispute over the rightful ownership of a tax refund, with the court reaffirming its earlier decision against the title company. The ruling highlights issues around tax refund entitlement and the legal standing of intermediary companies in tax matters. This second ruling underscores the court's consistent position that the title company lacks a valid claim to retain the refund funds in question.
Fed. Circ. Gives Pa. Biz A 2nd Go At $1.5M Tax Penalty Refund
The Federal Circuit Court has granted a Pennsylvania business a second opportunity to contest a $1.5 million tax penalty refund claim. The court's decision allows the company to re-litigate its case, suggesting procedural or substantive issues warranted further review. This case highlights the complex nature of tax penalty disputes and the appellate process available to businesses challenging IRS penalty assessments. The remand provides the Pennsylvania business another chance to present its arguments for recovering the significant penalty amount through the federal court system.
Tax-Exempt Organizations and the IRS: FY25 Audit and Penalty Increase and How to Prepare
The IRS increased audit activity and penalties targeting tax-exempt organizations in fiscal year 2025, signaling heightened enforcement scrutiny of nonprofits and other exempt entities. The article outlines the trends behind the uptick, including areas of focus such as unrelated business income, governance, and compliance failures. It also provides practical guidance for tax-exempt organizations on how to prepare for potential IRS examination, strengthen internal controls, review filing accuracy, and respond effectively to inquiries to minimize penalty exposure.
OICCI asks FBR to clear Rs103b in pending tax refunds
The Overseas Investors Chamber of Commerce and Industry (OICCI) has urged Pakistan's Federal Board of Revenue (FBR) to clear Rs103 billion in pending tax refunds owed to foreign investors. The backlog is reportedly undermining business confidence and discouraging fresh foreign direct investment. OICCI argues that the delayed refunds represent a significant liquidity burden on multinational companies operating in Pakistan, and has called on tax authorities to expedite processing. The chamber's appeal highlights systemic issues within Pakistan's tax administration, including slow refund mechanisms that critics say contradict the government's stated goals of improving the investment climate.
Hiring Freelancers? How a CRA Audit Can Turn Contractors Into Employees, Costing Businesses Thousands in Back Taxes
Canadian businesses hiring freelancers face significant tax risks if the CRA reclassifies contractors as employees during an audit. Such reclassification triggers liability for unpaid payroll taxes, CPP contributions, and EI premiums, potentially costing thousands in back taxes and penalties. The article outlines key factors the CRA examines to distinguish employees from independent contractors, including control, ownership of tools, chance of profit, and risk of loss. Businesses are advised to review worker agreements, ensure genuine contractor independence, and maintain proper documentation to withstand CRA scrutiny and avoid costly reassessments.
ECJ & General Court VAT Cases decided in 2026
A comprehensive overview of VAT cases decided by the European Court of Justice (ECJ) and the General Court during 2026, covering key rulings that shape VAT law across EU member states. The article compiles significant judgments addressing issues such as input tax deduction rights, place of supply rules, exemptions, and abuse of law principles. These decisions carry direct implications for businesses and tax authorities throughout the EU, as ECJ rulings set binding precedents on VAT Directive interpretation. Tax practitioners and compliance teams should review the case outcomes to assess their impact on ongoing arrangements and domestic VAT positions.
Comments on T-356/25 (Rapera) – Tax Representatives’ Direct VAT Liability Confirmed; Joint Liability Requires Proportionality
Analysis of ECJ case T-356/25 (Rapera), in which the General Court confirmed that tax representatives can bear direct VAT liability under certain conditions. The ruling clarifies the scope of joint and several liability for fiscal representatives, establishing that while direct liability may be imposed, any joint liability arrangement must respect the principle of proportionality. This decision has significant implications for businesses using tax representatives in EU jurisdictions, particularly for non-established companies relying on fiscal agents for VAT compliance. Tax representatives and their clients should reassess contractual risk-sharing arrangements in light of this proportionality requirement.
Input VAT Not Recoverable Without Valid VAT Invoices When Claimed
This article addresses the principle that input VAT cannot be recovered without valid VAT invoices at the time of the claim. It examines the legal and procedural requirements for VAT recovery, emphasizing that businesses must hold compliant invoices to substantiate deduction claims. The piece likely covers relevant case law or regulatory guidance confirming that retroactive or missing invoice documentation is insufficient to support input tax recovery. This is a critical compliance issue for businesses managing VAT deductions, as failure to maintain proper invoicing records can result in disallowed claims and potential penalties.
EPPO Cracks Down on €46.9M VAT Carousel Fraud Network (Greece, Bulgaria, Cyprus, Czechia)
The European Public Prosecutor's Office (EPPO) has dismantled a VAT carousel fraud network responsible for approximately €46.9 million in losses, involving coordinated operations across Greece, Bulgaria, Cyprus, and Czechia. Carousel fraud typically involves chains of transactions where goods are repeatedly bought and sold across EU borders, with fraudsters claiming VAT refunds on taxes never actually paid. The operation highlights cross-border enforcement cooperation within the EU and EPPO's growing role in combating Missing Trader Intra-Community (MTIC) fraud, which remains a significant threat to EU member states' tax revenues.
Minn. Tax Court Right On $108M Building Value, Justices Told
The Minnesota Supreme Court is being urged to uphold a Tax Court ruling regarding the assessed value of a $108 million building. The case centers on property valuation methodology and whether the lower court correctly determined the taxable value of the commercial property. The outcome could have significant implications for property tax assessments in Minnesota, potentially affecting how large commercial real estate assets are valued for tax purposes. Appellants argue the Tax Court applied the correct valuation standards, while the case highlights ongoing disputes between property owners and tax authorities over fair market value determinations.
Online Rummy Loss Cannot Be Taxed as Gross Winnings: Hyderabad ITAT Deletes ₹3.54 Crore Addition
The Hyderabad Income Tax Appellate Tribunal (ITAT) ruled that losses from online rummy cannot be disregarded when calculating taxable winnings. The tribunal deleted a ₹3.54 crore addition made by tax authorities who had taxed gross winnings without offsetting losses. The ruling clarifies that net winnings, not gross receipts, form the correct basis for taxation in skill-based online gaming. This decision has significant implications for how online gaming platforms and players report income under Indian personal income tax law, particularly amid evolving regulatory treatment of online gaming taxation in India.
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