Tax News Daily
The latest tax news from around the world, summarised and tagged for tax professionals. Updated twice daily.
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The VAT CESOP Directive and How It Affects Remote Sellers
The EU's CESOP (Central Electronic System of Payment Information) Directive requires payment service providers to report cross-border transaction data to tax authorities, aiming to combat VAT fraud in e-commerce. The article explains how CESOP affects remote sellers, including data reporting obligations, thresholds triggering compliance requirements, and how collected payment data is shared across EU member states. Remote sellers must understand how their transactions are being monitored and ensure VAT registration and remittance obligations are fully met, as CESOP gives authorities unprecedented visibility into cross-border digital and physical sales.
E-Invoicing Remains Voluntary — 2026/2027 Updates and Tax Incentives
An overview of the current status of e-invoicing as a voluntary measure, with forward-looking updates covering 2026 and 2027 regulatory developments. The article details tax incentives available to businesses that adopt e-invoicing early, including potential deductions or administrative benefits offered by tax authorities to encourage uptake. It outlines expected legislative timelines for transitioning from voluntary to mandatory status and advises businesses on planning their compliance roadmap. Understanding the incentive structure and transition schedule is critical for finance teams looking to optimize timing of system investments and compliance preparations.
William (Bill) Gale, 2026 Holland Medal Recipient
William (Bill) Gale has been named the 2026 Holland Medal recipient by the National Tax Association. The Holland Medal is a prestigious recognition awarded to individuals who have made significant contributions to the study and practice of public finance and taxation. Gale, a prominent tax policy economist, is well known for his extensive research on federal tax policy, fiscal sustainability, tax reform, and the economic effects of taxation in the United States. His work has shaped academic and policy debates around tax systems for decades, making him a highly respected figure in the tax research community.
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.
Dynan, Elmendorf, and Sheiner on Ai and Fiscal Policy
Economists Karen Dynan, Douglas Elmendorf, and Louise Sheiner examine how artificial intelligence may reshape fiscal policy analysis and government budgeting processes. Their research explores AI's potential to improve macroeconomic forecasting, revenue estimation, and spending projections used by fiscal authorities. While broadly focused on fiscal policy, the discussion includes implications for tax revenue modeling and the use of AI-driven tools in tax policy evaluation, touching on how AI technology could enhance the accuracy and efficiency of government tax and budget decision-making.
CCUS Investment Tax Credit: A Canadian Tax Lawyer’s Guide to Carbon Capture Incentives
A Canadian tax lawyer's guide to the Carbon Capture, Utilization, and Storage (CCUS) Investment Tax Credit introduced by the federal government. The article covers eligibility requirements for businesses investing in carbon capture projects, qualifying expenditures, applicable credit rates, and the refundable nature of the credit. It also addresses compliance obligations, how the credit interacts with other Canadian tax incentives, and practical considerations for corporations planning CCUS investments. The guide aims to help businesses and advisors navigate the technical and procedural requirements to successfully claim this green-energy tax incentive.
Hawaii Changes Affordable Housing Tax Exemption Authority
Hawaii has enacted legislation modifying the authority governing tax exemptions for affordable housing projects. The changes affect how exemptions are administered and granted, potentially impacting developers and organizations involved in affordable housing construction and financing. This legislative update reflects ongoing state-level efforts to incentivize affordable housing development through targeted tax relief measures. The adjustments to exemption authority may influence eligibility criteria, application processes, or the scope of qualifying projects, with implications for real estate developers, nonprofit housing organizations, and local government agencies working to address housing affordability challenges in Hawaii.
Autorización y auditoría en la identidad digital tributaria: pilares normativos y operativos para la confianza
This article from CIAT (Inter-American Center of Tax Administrations) examines the normative and operational pillars underpinning digital tax identity systems, focusing on authorization and audit mechanisms. It explores how tax authorities can build trust in digital identity frameworks through robust regulatory structures and operational controls. The piece addresses governance models for authenticating taxpayers in digital environments, the role of auditing in ensuring integrity of digital tax interactions, and the standards needed to secure tax administration platforms. It is relevant to modernizing tax authority infrastructure and ensuring compliance in increasingly digital tax ecosystems.
What the World Cup teaches us about proactive tax planning
Using the World Cup as a metaphor, this article draws parallels between strategic sports preparation and proactive tax planning. It emphasizes that successful tax outcomes, like championship wins, require forward-thinking strategy, anticipating rule changes, assembling the right team of advisors, and avoiding reactive decision-making. The piece encourages tax professionals and businesses to engage in year-round planning rather than last-minute compliance scrambles, leveraging scenario analysis and staying ahead of legislative developments to minimize tax liabilities and avoid penalties.
Noked: “Congress-Proof” International Tax Reforms
This article examines academic proposals for international tax reforms that could be implemented without requiring Congressional approval. The piece explores mechanisms by which the U.S. executive branch or regulatory bodies might advance international tax policy changes—potentially relating to OECD frameworks, Pillar Two, or cross-border tax rules—while bypassing the legislative process. The analysis is relevant to ongoing debates about U.S. engagement with global minimum tax initiatives and the structural constraints facing international tax reform in a divided political environment.
CCIA Responds to Korea’s Proposed Digital Service Tax
The Computer & Communications Industry Association (CCIA) has responded to South Korea's proposed Digital Services Tax. The organization has weighed in on the policy debate surrounding Korea's plan to impose a digital services tax, which would likely target major online platforms and technology companies. Such taxes have been a contentious issue globally, often raising concerns about trade retaliation, double taxation, and disproportionate impact on foreign technology firms. CCIA's response reflects broader industry opposition to unilateral digital services taxes that may conflict with international tax frameworks, including OECD Pillar One negotiations aimed at creating a multilateral solution.
Hawaii amends eligible business activities for Enterprise Zone Program
Hawaii has amended the eligible business activities qualifying for its Enterprise Zone Program. The program offers tax incentives to businesses operating in designated enterprise zones, and the update modifies which activities can benefit from these incentives. Such programs typically provide reductions in state income tax, unemployment insurance taxes, and general excise taxes for qualifying businesses. The amendment affects companies seeking to participate in the program by clarifying or expanding the scope of eligible operations, potentially impacting tax planning for businesses considering establishing or expanding operations within Hawaii's designated enterprise zones.
California Lawmakers Cry Foul Over New Cap Placed on Film Tax Credits
California legislators are pushing back against a newly imposed cap on the state's film and television tax credit program. Lawmakers argue the cap undermines California's competitiveness in attracting productions, particularly as other states and countries aggressively court Hollywood projects with more generous incentives. The dispute centers on the fiscal limits placed on available credits, which producers and industry advocates say will deter filming in the state. The controversy highlights ongoing tensions between budget constraints and economic development goals, with the film industry warning that reduced credits could accelerate the migration of productions—and associated jobs and spending—to rival locations.
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.
Treasury’s Top Tax Official to Depart
The U.S. Treasury's top tax official is departing, signaling a significant leadership change within the department responsible for U.S. tax policy, rulemaking, and international tax negotiations. The departure may have implications for ongoing regulatory guidance, Treasury's stance on OECD Pillar Two negotiations, and domestic tax rule development. Leadership transitions at Treasury's tax division can influence the pace and direction of tax guidance, enforcement priorities, and U.S. positions in international tax forums.
Gibraltar Introduces Transaction Tax: New Indirect Tax Framework Under the UK–EU Agreement
Gibraltar is introducing a new Transaction Tax as part of an indirect tax framework aligned with the UK–EU Agreement. This new levy represents a significant shift in Gibraltar's tax landscape, replacing or supplementing existing indirect tax mechanisms to comply with obligations arising from post-Brexit arrangements between the UK and EU. The framework is expected to impact businesses operating in or through Gibraltar, requiring adaptation to new compliance requirements. The Transaction Tax reflects broader efforts to harmonize Gibraltar's fiscal regime with European indirect tax standards, particularly relevant given Gibraltar's unique geopolitical position under the UK–EU deal taking effect from 2026.
Guidance: Cross-border arrangement reporting: service availability and issues
UK HMRC guidance on service availability and issues for the cross-border arrangement reporting service, which relates to the UK's mandatory disclosure rules (MDR) aligned with the OECD DAC6 framework. This service is used by intermediaries and taxpayers to report potentially aggressive or abusive cross-border tax arrangements. The guidance alerts users to technical outages or disruptions affecting the reporting portal, helping ensure timely compliance with mandatory disclosure obligations that target tax avoidance structures involving multiple jurisdictions.
EU Council extends VAT split‑payment derogation to June 2029
The EU Council has extended a VAT split-payment derogation through to June 2029, allowing a member state (likely Poland, which has historically operated a mandatory split-payment mechanism) to continue applying this VAT collection method. Under split payment, the VAT portion of a transaction is paid directly into a dedicated VAT account rather than to the supplier, reducing fraud risk. The extension reflects the mechanism's effectiveness in combating VAT fraud while acknowledging it deviates from standard EU VAT Directive rules. Businesses operating in the relevant jurisdiction must continue maintaining compliant split-payment account procedures.
Governing the Exchange of Tax Data in Digital Public Infrastructure: Law, Rights, and the Protection of Citizens in Data-Driven Systems
This publication examines the legal and rights-based frameworks governing the exchange of tax data within digital public infrastructure systems. It explores how governments collect, share, and use citizen tax data in increasingly automated, data-driven environments, raising questions about privacy, legal protections, and citizen rights. The paper analyzes the intersection of tax administration modernization with data governance principles, highlighting risks of inadequate legal safeguards when tax data flows through digital public infrastructure. It calls for robust regulatory frameworks to protect citizens from potential misuse of sensitive tax information in government-operated digital systems.
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