Tax News Daily
The latest tax news from around the world, summarised and tagged for tax professionals. Updated twice daily.
Tax Head
Region
ITAT Upholds Pass-Through Taxation for Revocable Securitisation Trust Under Income Tax Act
India's Income Tax Appellate Tribunal (ITAT) has upheld pass-through taxation treatment for a revocable securitisation trust under the Income Tax Act. The ruling affirms that income generated by such trusts should be taxed in the hands of the beneficiaries rather than the trust itself, consistent with pass-through principles. This decision has significant implications for the securitisation industry in India, clarifying the tax treatment of revocable trusts and providing certainty for financial institutions and investors structuring securitisation vehicles under Indian tax law.
ITAT Remands Section 50C Addition After Finding Breach of Natural Justice
India's Income Tax Appellate Tribunal (ITAT) has remanded a Section 50C addition back for fresh adjudication after determining that the assessing officer violated principles of natural justice. Section 50C deals with deemed capital gains on property transfers where the sale consideration is below the stamp duty value. The tribunal found the taxpayer was not given an adequate opportunity to present their case before the addition was made, requiring the matter to be reconsidered with proper procedural fairness.
Comments on ECJ C-603/24 (Stellantis Portugal) – Transfer pricing and VAT: Court confirms in Stellantis that not every true-up constitutes a service
The European Court of Justice ruled in case C-603/24 (Stellantis Portugal) that not every transfer pricing true-up payment constitutes a taxable service for VAT purposes. The court confirmed that intercompany price adjustments made to align profits with arm's length principles do not automatically create a VAT-liable supply of services. This decision clarifies the intersection of transfer pricing and VAT, providing important guidance for multinationals managing intragroup transactions in the EU, particularly regarding when true-up payments trigger VAT obligations versus when they remain outside the scope of VAT entirely.
Mandatory B2B Peppol E-Invoicing Live; 2028 E-Reporting Next
Mandatory B2B Peppol e-invoicing has gone live, marking a significant milestone in electronic invoicing adoption. Businesses are now required to exchange invoices via the Peppol network for B2B transactions, with e-reporting requirements set to follow by 2028. This phased implementation reflects a broader regulatory trend toward digitising tax compliance and transaction reporting. The 2028 e-reporting mandate will extend obligations beyond invoice exchange to structured data submission to tax authorities, requiring businesses to prepare their systems and processes well in advance of the upcoming deadline.
ITAT Directs CPC to Grant Section 87A Rebate on STCG Tax
India's Income Tax Appellate Tribunal (ITAT) has directed the Centralised Processing Centre (CPC) to grant the Section 87A tax rebate on Short-Term Capital Gains (STCG) tax to eligible taxpayers. The CPC had denied the rebate, creating disputes for individuals whose total income fell within eligible thresholds. This ruling clarifies that the Section 87A rebate, available to resident individuals with income up to specified limits, should be applied against STCG tax liabilities, providing relief to affected taxpayers.
ITAT Reduces Bogus Purchase Addition to 10% for Civil Contractor, Recognises Lower Industry Margins
India's Income Tax Appellate Tribunal (ITAT) has reduced a bogus purchase addition to 10% of the disputed amount for a civil contractor, acknowledging the sector's characteristically low profit margins. The tribunal recognised that applying a higher addition rate would be disproportionate given industry norms in civil contracting. This ruling provides guidance on how tax authorities should calibrate additions for unverified purchases, balancing revenue protection with commercial reality, particularly for contractors operating in low-margin construction and infrastructure sectors.
Import VAT Payment Deadline Aligned with Customs Rules
Lithuania has aligned its import VAT payment deadlines with customs rules, harmonising the timing of VAT obligations for imported goods with existing customs duty payment schedules. This regulatory change simplifies compliance for importers operating in Lithuania by creating consistency between customs and VAT payment timelines, reducing administrative complexity. Businesses engaged in importing goods into Lithuania should review their cash flow and compliance processes to ensure they meet the updated deadlines, which now mirror the customs framework rather than operating under a separate VAT-specific payment schedule.
AI and compliance: “The productivity case is clear”
The article explores how artificial intelligence is transforming compliance and accounting workflows, making the case that productivity gains are significant and measurable. It examines how AI tools are being adopted by accounting and compliance professionals to automate routine tasks, improve accuracy, and handle growing regulatory complexity. The discussion includes practical applications in tax and financial compliance, where AI-driven automation is reducing manual effort and enabling teams to focus on higher-value analysis. The productivity argument is positioned as the primary driver for AI adoption across compliance functions, including tax compliance operations.
FBR to receive data on bank transactions above Rs100m under new law
Pakistan's Federal Board of Revenue (FBR) is set to gain access to data on bank transactions exceeding Rs100 million under newly enacted legislation. This measure is designed to enhance tax compliance and broaden the tax base by enabling authorities to cross-check declared income against large financial movements. The initiative reflects the FBR's ongoing efforts to curb tax evasion and improve documentation of the economy. Automatic data sharing from financial institutions to the tax authority represents a significant enforcement tool in Pakistan's tax administration framework.
Senate panel seeks 20-year tobacco tax record after FBR fails to provide data
Pakistan's Senate panel has demanded a 20-year record of tobacco tax collections after the Federal Board of Revenue (FBR) failed to provide the requested data. The inquiry highlights concerns over transparency and accountability in tobacco taxation, with legislators seeking historical revenue figures to assess whether tax policy on tobacco has been effectively enforced and collected. The FBR's inability to furnish the records raises questions about data management within Pakistan's tax administration and the adequacy of tobacco excise tax compliance and enforcement over two decades.
Apply to import multiple low value parcels on one declaration
HMRC guidance outlines a scheme allowing importers to consolidate multiple low-value parcels onto a single customs declaration, streamlining the import process for goods below the standard declaration threshold. This is particularly relevant for e-commerce and parcel operators handling high volumes of low-value consignments. The process aims to reduce administrative burden and improve customs efficiency, while ensuring VAT and customs duties are still correctly accounted for. Applicants must meet eligibility criteria and register with HMRC to use the consolidated declaration approach.
IRS offers gift tax safe harbor for contributions to Trump accounts
The IRS has issued a gift tax safe harbor for contributions made to Trump accounts, providing taxpayers with guidance on how such contributions will be treated for federal gift tax purposes. The safe harbor offers clarity on the tax implications of these contributions, helping donors avoid potential gift tax liability. This guidance is significant for taxpayers making contributions to these accounts, as it establishes a clear framework for compliance with gift tax rules under the Internal Revenue Code, reducing uncertainty and potential disputes with the IRS over the taxable nature of such transfers.
IRS offers gift tax safe harbor for contributions to Trump accounts
The IRS has issued guidance providing a gift tax safe harbor for contributions made to Trump accounts, a new savings vehicle. The safe harbor clarifies the tax treatment of contributions, offering taxpayers certainty that qualifying contributions will not trigger gift tax liability. This guidance is significant for individuals contributing to these accounts on behalf of others, addressing concerns about potential gift tax implications. The IRS ruling helps define the boundaries of taxable gifts in this context, providing practical relief for account contributors and aligning with broader personal tax planning considerations under current U.S. tax law.
Tax Court Reviews ‘Cohan Rule’ in New Business Expense Case
The U.S. Tax Court has revisited the Cohan Rule in a new business expense case, examining its application to taxpayers who lack adequate documentation for claimed deductions. The Cohan Rule allows courts to estimate deductible expenses when exact records are unavailable, provided sufficient evidence exists to support a reasonable approximation. This case highlights ongoing tension between taxpayer recordkeeping obligations under IRC Section 274 and judicial discretion to allow estimated deductions. The ruling has practical implications for tax practitioners advising clients on substantiating business expenses and managing audit risk when documentation is incomplete or lost.
Va. Has Nation's First Electricity Tax On Data Centers
Virginia has enacted what is reported to be the nation's first electricity tax specifically targeting data centers. The levy imposes a tax on electricity consumption by data center facilities, marking a novel approach to taxing the energy-intensive infrastructure underpinning cloud computing and digital services. The measure reflects growing state interest in capturing revenue from large technology operations that consume significant power resources. This development could influence other states considering similar electricity or energy-use taxes on data centers, potentially reshaping the tax landscape for the technology sector across the United States.
Newsom Floats Federal Wealth Tax After California Deal Fails
California Governor Gavin Newsom is proposing a federal wealth tax following the failure of a state-level wealth tax deal in California. The proposal targets high-net-worth individuals and represents a significant shift in tax policy advocacy, moving from state to federal jurisdiction. Newsom's push highlights ongoing debates around wealth taxation in the United States, including concerns about capital flight from high-tax states like California. The proposal reflects broader progressive efforts to impose additional taxes on accumulated wealth, though federal implementation faces substantial political and constitutional hurdles.
2nd Circ. Revives Penalty Collection Fight In $380M Tax Case
The Second Circuit Court of Appeals has revived a penalty collection dispute in a $380 million federal tax case, reinstating claims that had been dismissed at the lower court level. The ruling allows the government to continue pursuing substantial tax penalties against the defendant, keeping alive a high-stakes controversy over the collection and enforcement of significant tax liabilities. The case highlights ongoing judicial scrutiny of IRS penalty assessment and collection procedures, with the appellate court's decision potentially setting important precedent for how courts evaluate penalty-related disputes in large-scale federal tax enforcement matters.
Fiscal Hell or Mirage? What Spain’s Wage Debate Gets Wrong
This article from Tax Justice Network challenges the narrative around Spain's wage and fiscal debate, examining claims about tax burdens on workers and businesses. It critiques arguments that frame Spain as a 'fiscal hell' for employers or high earners, analysing how wage costs, social contributions, and income taxation interact. The piece scrutinises whether tax pressure in Spain genuinely discourages employment or investment, pushing back against rhetoric used to oppose wage increases or progressive taxation. It contextualises Spain's fiscal position within broader European comparisons, arguing the 'fiscal hell' framing misrepresents the data on effective tax rates and labour costs.
Expanded CCH Axcess Expert AI to Deliver AI-Powered Scan and K-1 Automation
Wolters Kluwer has expanded its CCH Axcess Expert AI platform to include AI-powered document scanning and K-1 automation capabilities. The enhancements leverage artificial intelligence to streamline tax return preparation workflows, automating the extraction and processing of K-1 partnership and trust income data. This reduces manual data entry burden for tax professionals, improving accuracy and efficiency in personal and partnership tax compliance. The expansion reflects growing adoption of AI-driven automation tools within tax software platforms, targeting CPA firms seeking to manage increasing workloads with greater speed and fewer errors during tax season.
Carbon Taxes in Europe, 2026
This article examines carbon taxes across European countries heading into 2026, covering the landscape of carbon pricing mechanisms implemented by individual European nations alongside the EU Emissions Trading System. Carbon taxes represent a fiscal policy tool that directly taxes greenhouse gas emissions, making them a substantive tax policy topic. The piece likely details rates, coverage, and comparative analysis across European jurisdictions, providing data on how different countries have structured their carbon levies and how these mechanisms interact with broader EU climate and energy policy frameworks.
Get the Friday Digest
Every Friday, a curated summary of the week's tax news delivered to your inbox. Choose what you want to hear about — no noise, no spam, unsubscribe anytime.
Tax heads you care about(select all that apply)
Regions you care about(select all that apply)
Your email is never shared or sold. You can unsubscribe at any time. Built in compliance with GDPR.