Tax News Daily
The latest tax news from around the world, summarised and tagged for tax professionals. Updated twice daily.
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Can Penalty for Concealment Survive If Income Declared in Return Filed Under Section 148 Is Accepted? ITAT Chennai Says No
The Income Tax Appellate Tribunal (ITAT) Chennai ruled that a penalty for concealment of income cannot survive when the income declared in a return filed under Section 148 (reassessment notice) is accepted by tax authorities. The case examines whether concealment penalties under Section 271(1)(c) of the Income Tax Act are valid if the assessee voluntarily discloses income in response to a reassessment notice and that disclosure is accepted without dispute. ITAT Chennai concluded that acceptance of the declared income negates the basis for imposing a concealment penalty, providing significant relief to taxpayers facing reassessment proceedings in India.
How to Use Online Challan Correction Facility on IT Portal
This article provides a step-by-step guide on using the online challan correction facility available on India's Income Tax Portal. It explains how taxpayers can rectify errors in tax payment challans, such as incorrect assessment years, tax amounts, or taxpayer details, without visiting a bank or tax office. The guide covers eligibility conditions, the correction request process, and timelines for approval, helping individuals and businesses ensure their tax payment records are accurate and properly reflected in their accounts.
Four definitions to change the world: Struggles over meaning in the UN tax convention negotiations
The article examines four critical definitional battles shaping the UN tax convention negotiations, which could fundamentally alter the global tax landscape. Definitions around key concepts such as tax base, residency, and corporate taxation are being contested by developed and developing nations, with significant implications for how cross-border income is taxed and revenue is distributed. The Tax Justice Network analyzes how the precise wording of these definitions could shift taxing rights, affect multinational corporations, and determine whether the convention meaningfully addresses tax justice concerns for lower-income countries. The outcome of these negotiations may reshape international tax norms beyond existing OECD frameworks.
US Sales Tax Nexus for Foreign Ecommerce Sellers: Hidden Triggers and Compliance Steps
This article examines US sales tax nexus rules specifically targeting foreign ecommerce sellers, outlining the hidden triggers that can create tax obligations even without a physical US presence. It covers economic nexus thresholds established post-South Dakota v. Wayfair, marketplace facilitator rules, inventory storage triggers through fulfillment centers, and click-through or affiliate nexus provisions. The article provides practical compliance steps for international sellers, including state registration requirements, tax collection obligations, and filing procedures to avoid penalties and back-tax liabilities when selling into the US market.
8 Best IOSS Solutions for Non-EU E-Commerce Sellers
This article reviews the eight best Import One-Stop Shop (IOSS) solutions for non-EU e-commerce sellers, helping them comply with EU VAT regulations on low-value goods sold to EU consumers. IOSS, introduced in July 2021, simplifies VAT collection and remittance for sellers shipping goods valued under €150 into the EU. The article evaluates platforms and intermediary services based on ease of registration, compliance support, pricing, and integration capabilities, providing non-EU merchants with guidance on selecting the right IOSS intermediary to avoid customs delays and ensure VAT compliance across all EU member states.
Introducing the 2026 Poland VAT Guide
A 2026 Poland VAT Guide has been introduced, providing comprehensive guidance on VAT compliance requirements in Poland. The guide covers key aspects of Polish VAT regulations, rates, registration obligations, and filing requirements for businesses operating in or trading with Poland. As Poland continues to evolve its VAT framework, including digital reporting and e-invoicing mandates, the guide serves as a practical resource for businesses and tax professionals navigating Polish VAT compliance in 2026. It aims to help companies understand their obligations and maintain compliance with Polish tax authorities.
VAT Single Market
HMRC internal manual covering VAT rules within the Single Market framework, addressing the application of VAT to goods and services traded across borders within the UK and EU context. The manual provides guidance on VAT treatment for cross-border transactions, including rules on place of supply, distance selling, and intra-community acquisitions. It serves as a reference for HMRC staff and businesses navigating VAT obligations in single market trading scenarios, reflecting the regulatory framework governing VAT compliance for transactions involving multiple jurisdictions.
Buyback Proceeds Now Taxable as Dividend: How to Report it in Your ITR
India has changed the tax treatment of share buyback proceeds, now taxing them as dividends in the hands of shareholders rather than at the company level. The article guides Indian taxpayers on how to correctly report such income in their Income Tax Return (ITR), covering the applicable tax rates, disclosure requirements, and relevant ITR schedules. This represents a significant shift in personal income tax treatment for investors receiving buyback proceeds, requiring careful compliance when filing returns for the relevant assessment year.
Statutory guidance: Notices made under the Customs (Bulk Customs Declaration and Miscellaneous Amendments) (EU Exit) Regulations 2020
Statutory guidance covering notices made under the Customs (Bulk Customs Declaration and Miscellaneous Amendments) (EU Exit) Regulations 2020. This guidance addresses customs declaration procedures for bulk shipments following the UK's departure from the EU, outlining the regulatory framework for simplified customs declarations. It is relevant to businesses engaged in cross-border trade with the EU, detailing compliance requirements and procedural rules for customs declarations under post-Brexit arrangements.
Capital Gains Manual
HMRC's Capital Gains Manual provides comprehensive guidance on the taxation of capital gains in the UK. It covers the rules and principles governing how gains and losses are calculated, what assets are chargeable, available reliefs and exemptions, and how capital gains tax applies to individuals, trusts, and companies. The manual serves as an authoritative reference for tax practitioners and taxpayers navigating UK capital gains tax obligations, including topics such as disposal proceeds, allowable costs, and specific asset classes including shares, property, and business assets.
Govt Extends Time Limit to File Appeals or Applications Before GST Appellate Tribunal Till July 31, 2026
The Indian government has extended the deadline for filing appeals or applications before the GST Appellate Tribunal (GSTAT) to July 31, 2026. This extension provides taxpayers additional time to approach the newly operational tribunal for resolving GST disputes. The move is significant for businesses with pending GST controversies, as the GSTAT serves as a key forum for adjudicating tax disputes under India's Goods and Services Tax framework, offering relief to taxpayers who may have missed earlier filing windows.
International treaty: Sweden: tax treaties
This publication covers the tax treaty arrangements between the United Kingdom and Sweden. Double taxation agreements between the two countries set out rules for determining taxing rights over various categories of income and gains, including dividends, interest, royalties, employment income, and business profits. The treaties are designed to prevent double taxation and fiscal evasion, providing certainty for individuals and businesses operating across both jurisdictions. The guidance is relevant for cross-border taxpayers and advisers managing UK-Sweden tax exposures.
Undergraduate Student Receives Income Tax Summons Over Rs 20.98 Crore Transactions, Alleges PAN-Aadhaar Misuse by Shell Company
An undergraduate student in India received an income tax summons related to Rs 20.98 crore in financial transactions linked to their PAN and Aadhaar credentials. The student alleges identity misuse by a shell company that fraudulently used their details. The case highlights serious concerns around PAN-Aadhaar misuse for tax evasion purposes, with the Income Tax Department investigating the high-value transactions. It underscores risks of identity theft in tax compliance and the challenges individuals face when fraudulently implicated in others' financial activities.
Income Tax Act, 2025 Replaces “May” with “Shall”: Has the Assessing Officer Lost His Discretion?
India's Income Tax Act, 2025 has replaced the word 'may' with 'shall' in provisions governing Assessing Officers, raising significant questions about whether AOs have lost their discretionary powers. Previously, 'may' granted flexibility in assessment decisions, while 'shall' imposes a mandatory obligation. This linguistic shift could have far-reaching implications for tax administration, potentially constraining AOs from exercising judgment in borderline cases. The article examines whether this drafting change represents a deliberate policy intent to standardize assessments or an inadvertent alteration, and what consequences this may have for taxpayers facing scrutiny assessments under the revised statute.
Has the Income-tax Act, 2025 Changed the Law on Capital Gains Exemption for Depreciable Assets?
India's Income Tax Act, 2025 has prompted analysis of whether it alters the established legal position on capital gains exemption for depreciable assets. Under prior law, gains on depreciable assets were typically taxed as short-term capital gains regardless of holding period. The article examines whether the 2025 recodification has inadvertently or deliberately changed this treatment, reviewing relevant provisions and their interaction with depreciation rules. Any substantive change could significantly impact businesses and individuals holding depreciable assets, affecting tax planning strategies and the computation of capital gains liabilities under the new statutory framework.
HC Upholds MCX Circular Fixing Negative Due Date Rate for Crude Oil
A High Court has upheld a Multi Commodity Exchange (MCX) circular that fixed a negative due date rate for crude oil contracts. While primarily a commodity market regulatory matter, the case carries tax implications as the settlement price determination for futures contracts affects the calculation of commodity transaction tax and capital gains tax on derivative instruments. The ruling validates MCX's authority to set contract settlement rates under extraordinary market conditions, similar to the negative pricing event seen in April 2020, which has downstream consequences for how gains and losses on such contracts are assessed for tax purposes in India.
Sweden: Tax Agency clarifies VAT registration and deduction rights
Sweden's Tax Agency has issued clarification regarding VAT registration requirements and deduction rights, providing guidance for businesses operating in Sweden. The clarification addresses how businesses can register for VAT and the conditions under which they may exercise their right to deduct input VAT. This guidance is significant for both domestic and foreign businesses seeking to understand their VAT obligations and entitlements under Swedish tax law, helping ensure compliance with local VAT rules and reducing uncertainty around registration thresholds and deductible expense categories.
Appeal Is Not a Mere Formality: ITAT Mumbai Reminds Authorities to Determine the Correct Tax Liability
The Income Tax Appellate Tribunal (ITAT) Mumbai has issued a significant ruling emphasizing that tax appeals are not mere procedural formalities but substantive proceedings requiring authorities to determine the correct tax liability. The tribunal reminded appellate authorities of their independent duty to assess the actual tax due rather than mechanically upholding or rejecting lower-order decisions. This ruling reinforces taxpayer rights in the appellate process and underscores that appellate bodies must apply judicial mind to the merits of each case, ensuring fair and accurate tax assessments rather than rubber-stamping earlier determinations.
Manual vs Automated Payroll Software: Which Is Best for SMEs?
This article compares manual and automated payroll software solutions for small and medium-sized enterprises (SMEs), examining the trade-offs between traditional manual payroll processing and modern automated systems. Key considerations include accuracy, compliance with payroll tax obligations, cost, and scalability. Automated payroll software is highlighted for its ability to reduce errors in tax calculations, ensure timely filings, and handle complex payroll tax deductions, while manual processing may suit very small businesses with simple needs. The piece helps SME owners evaluate which approach best manages their payroll tax responsibilities efficiently.
HC Holds Time-Barred Assessment Cannot Sustain Penalty Under Section 271(1)(c)
An Indian High Court has ruled that a time-barred tax assessment cannot serve as the basis for levying a penalty under Section 271(1)(c) of the Income Tax Act, which deals with concealment of income or furnishing inaccurate particulars. The court held that if the underlying assessment itself is invalid due to being time-barred, any consequential penalty proceedings also cannot be sustained. This ruling has significant implications for tax controversy cases, reinforcing procedural safeguards for taxpayers against penalties arising from legally defective assessments.
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