Tax News Daily
The latest tax news from around the world, summarised and tagged for tax professionals. Updated twice daily.
Tax Head
Region
How to File Florida Sales Tax Returns (Step-by-Step Guide)
A step-by-step guide to filing Florida sales tax returns, covering the process for businesses operating in the state. The article walks through registration requirements, filing frequencies, how to calculate tax owed, and the mechanics of submitting returns through Florida's Department of Revenue online portal. It addresses common compliance considerations for businesses subject to Florida's sales tax rules, including deadlines, payment methods, and potential penalties for late filing. This practical guide is aimed at small business owners and tax professionals managing Florida sales tax obligations.
DMA Acquires Barron Corporate Tax Solutions in Illinois
DMA, a property tax and business tax consulting firm, has acquired Barron Corporate Tax Solutions, an Illinois-based corporate tax advisory practice. The acquisition expands DMA's corporate tax capabilities and geographic footprint in the Midwest. Barron Corporate Tax Solutions specializes in corporate income tax compliance and consulting services. The deal strengthens DMA's ability to serve mid-to-large enterprises seeking integrated tax solutions across property, sales, and corporate income tax disciplines. Financial terms of the transaction were not disclosed.
Back to School: Bringing Tax Literacy to the Classroom
The Tax Foundation is hosting a webinar focused on bringing tax literacy into classrooms, aimed at educators and students. The event explores how foundational tax concepts can be taught effectively at the school level, addressing the broader need for financial and civic education around taxation. By improving public understanding of how taxes work, the initiative seeks to build more informed citizens and future taxpayers. The webinar reflects growing interest in integrating tax education into standard curricula, helping young people understand the role taxes play in funding public services and shaping economic policy.
IRS Sets Introductory Guidelines on AI Use for Tax Professionals
The IRS has issued introductory guidelines governing the use of artificial intelligence tools by tax professionals. The guidance addresses responsible AI adoption in tax practice, covering areas such as data privacy, accuracy obligations, and professional accountability when leveraging AI-assisted tax preparation and advisory services. The IRS emphasizes that professionals remain responsible for AI-generated outputs and must apply appropriate due diligence. The guidelines aim to provide a framework as AI tools become more prevalent in tax compliance and planning workflows, signaling the agency's intent to develop more comprehensive standards going forward.
Uncapping the Payroll Tax Would Be the Largest Tax Increase in Decades—and Still Wouldn’t Save Social Security
The Tax Foundation examines a proposal to remove the payroll tax cap on Social Security contributions, warning it would constitute one of the largest tax increases in modern U.S. history. Currently, earnings above approximately $168,600 are exempt from the Social Security payroll tax. Uncapping this would significantly raise taxes on higher earners but analysis suggests it still would not fully resolve Social Security's long-term funding shortfall. The piece critiques the proposal's effectiveness and economic impact, highlighting that structural reforms beyond revenue increases are needed to ensure the program's solvency over the coming decades.
International Exchange of Information Manual
HMRC's International Exchange of Information Manual covers the legal frameworks and procedures governing the automatic and on-request exchange of taxpayer information between the UK and other jurisdictions. This includes mechanisms such as FATCA, the Common Reporting Standard (CRS), and bilateral tax information exchange agreements (TIEAs). The manual is used by HMRC staff to handle cross-border information requests, supporting tax compliance and anti-avoidance efforts internationally. It is directly relevant to transfer pricing, tax controversy, and international tax enforcement activities.
Why Interest on Foreign Tax Arrears is Not Deductible: Canadian Tax Lawyer Explains Tax Court Decision in Bank of Montreal v. The King, Paragraph 18(1)(a)
A Canadian Tax Court decision in Bank of Montreal v. The King examined whether interest on foreign tax arrears is deductible under paragraph 18(1)(a) of Canada's Income Tax Act. The court ruled such interest is not deductible, as it fails the income-earning purpose test — the expense must be incurred for the purpose of earning income from a business or property. The case clarifies that interest payments on foreign tax obligations are considered on capital or non-income account, reinforcing important limitations on corporate deductions for Canadian taxpayers with cross-border operations and foreign tax liabilities.
Clouse et al.: California’s Billionaire Tax Act Threatens Growth and Fails to Address Structural Deficits
Academics critique California's proposed Billionaire Tax Act, arguing it threatens economic growth and fails to resolve the state's structural fiscal deficits. The analysis suggests that targeting ultra-high-net-worth individuals with wealth-based taxation risks capital flight, as billionaires may relocate assets or residency to avoid the levy. The authors contend the act addresses symptoms rather than California's underlying spending and revenue imbalances. The piece raises broader questions about the viability and design of wealth taxes at the state level, including constitutional concerns and enforcement challenges around unrealized gains taxation.
Guidance: Tax-free savings newsletter 22
HMRC's Tax-Free Savings Newsletter 22 provides updates for managers and administrators of tax-advantaged savings products, principally ISAs (Individual Savings Accounts) and related vehicles in the UK. These newsletters communicate regulatory changes, administrative guidance, and compliance requirements governing how tax-free savings schemes operate. As ISAs and similar products provide exemptions from income tax and capital gains tax on savings and investment returns, the newsletter is directly relevant to personal income tax policy and the administration of tax relief for savers.
UK signals the future of e-invoicing with Peppol as core network
The UK government has signaled its direction for e-invoicing by adopting Peppol as the core network infrastructure. This announcement marks a significant step in the UK's e-invoicing strategy, aligning it with internationally recognised standards already adopted across Europe and beyond. The move indicates the government's intent to modernise business-to-business and business-to-government invoicing processes, reducing administrative burdens and improving tax compliance and reporting. The adoption of Peppol positions the UK within a globally interoperable e-invoicing ecosystem, with implications for VAT reporting accuracy and digital tax administration going forward.
America’s 250th: The Evolution of Excise Taxes
As the United States marks its 250th anniversary, the Tax Foundation traces the historical evolution of excise taxes from the nation's founding to the present day. The piece examines how excise taxes on goods such as alcohol, tobacco, and fuel have been used throughout American history as both revenue-raising tools and instruments of policy. It explores landmark moments including early whiskey taxes that sparked rebellion, wartime revenue measures, and modern sin taxes. The article contextualizes how excise tax design and philosophy have shifted over 250 years, reflecting changing economic priorities and governance approaches.
Notice: Notices made under The Customs (Export) (EU Exit) Regulations 2019
This UK government publication sets out official notices made under The Customs (Export) (EU Exit) Regulations 2019, which govern export procedures following the UK's departure from the European Union. These notices carry legal force and specify requirements for exporters, including documentation, procedures, and controls applicable to goods leaving the UK. The regulations form a core part of the UK's post-Brexit customs framework, directly impacting trade compliance obligations for businesses engaged in cross-border export activities.
Hyderabad Customs ramps up anti-smuggling drive, confiscates goods worth over Rs77m
Hyderabad Customs authorities have intensified their anti-smuggling operations, seizing contraband goods valued at over Rs77 million. The enforcement drive reflects Pakistan's customs administration efforts to curb illicit trade and protect legitimate revenue streams. Such operations are part of broader customs enforcement mechanisms aimed at preventing duty evasion and smuggling of prohibited or restricted goods across Pakistani borders. The confiscations underscore the Federal Board of Revenue's commitment to strengthening border controls and trade compliance, with significant implications for customs duty collection and the deterrence of illegal import/export activities within Pakistan's trade regulatory framework.
Peppol Conference Europe 2026: Key takeaways from Brussels
The Peppol Conference Europe 2026 in Brussels highlighted key developments in the Peppol network's role in advancing eInvoicing adoption across Europe. Discussions centered on expanding Peppol's interoperability framework, progress on EU eInvoicing mandates, and integration with the VAT in the Digital Age (ViDA) initiative. The conference addressed cross-border eInvoicing standardization, onboarding challenges for SMEs, and the evolving regulatory landscape requiring businesses to adopt structured invoice formats. Stakeholders from government, technology providers, and businesses explored how Peppol infrastructure supports compliance with national and EU-level eReporting obligations, positioning it as a critical backbone for digital tax compliance across member states.
Swedish Court Confirms VAT Exemption for Cost-Sharing Group General Services
A Swedish court has confirmed that VAT exemption applies to general services provided within a cost-sharing group (CSG). The ruling clarifies the scope of the VAT exemption for cost-sharing arrangements, affirming that administrative and support services supplied among CSG members qualify for exemption. This decision is significant for businesses operating shared service structures in Sweden, providing clarity on how VAT rules apply to intra-group cost allocations and potentially influencing how similar arrangements are structured across the EU where the cost-sharing exemption under the VAT Directive is applied.
Taxing AI Data Centers: Incentives, Sales Tax, and Expanding Revenue Regimes
This article examines the tax landscape surrounding AI data centers, covering three key dimensions: government incentive programs designed to attract data center investment, sales tax considerations on equipment and energy consumption, and the expansion of revenue-based tax regimes targeting digital infrastructure. As AI infrastructure investment surges globally, jurisdictions are balancing competitive tax incentives against growing pressure to capture tax revenues from the sector. The piece highlights how sales tax exemptions, property tax abatements, and evolving digital services tax frameworks are shaping data center location and investment decisions.
VAT: Boehringer Ingelheim Post-Supply Payments Not Treated as Price Rebates
A VAT ruling concerning Boehringer Ingelheim has determined that post-supply payments made by the pharmaceutical company cannot be treated as price rebates for VAT purposes. This distinction is critical as rebates typically reduce the taxable base, entitling suppliers to adjust VAT liability. The decision clarifies the VAT treatment of payments made after the original supply, which is a recurring issue in the pharmaceutical sector where manufacturers make payments to health authorities or insurers. The ruling has implications for how pharma companies account for VAT on rebate-like arrangements across their supply chains.
Norway Introduces New VAT Rules for Cross-Border Services in MLEs
Norway has introduced new VAT rules specifically targeting cross-border services supplied within multi-lateral enterprises (MLEs). The changes address how VAT applies when services flow across borders within complex organizational structures, aiming to close gaps where cross-border intra-group services may have escaped Norwegian VAT. The new rules are designed to ensure that foreign entities providing services to Norwegian entities within MLEs are properly captured within the VAT regime. This development reflects broader Nordic efforts to tighten VAT compliance on international service flows and has direct relevance for multinational groups with Norwegian operations.
Mexico Bans VAT Credits for Insurance Indemnification Costs
Mexico has introduced a ban preventing businesses from claiming VAT input tax credits on costs related to insurance indemnification payments. The measure targets situations where companies sought to recover VAT on expenses reimbursed through insurance claims, effectively treating indemnification proceeds as compensation rather than consideration for a taxable supply. This change limits VAT recovery rights for insured businesses and has significant implications for risk management and cost planning. Companies operating in Mexico will need to reassess their VAT recovery positions where insurance indemnifications intersect with operational expenditure.
COUNTERPOINT: Social Security Should Not Be Privatized
This opinion piece argues against privatizing Social Security, contending that the current public system provides reliable, guaranteed benefits that private accounts cannot match. The author highlights risks including market volatility, inadequate retirement savings behavior, and the potential elimination of disability and survivor benefits. From a tax angle, Social Security privatization carries significant payroll tax implications — redirecting payroll contributions to private accounts would undermine the payroll tax funding mechanism, potentially requiring alternative tax revenue or benefit cuts to cover existing obligations.
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.