Tax News Daily
The latest tax news from around the world, summarised and tagged for tax professionals. Updated twice daily.
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Failing to Renew the USMCA Would Increase Tariff Uncertainty and Harm Americans
The article examines the consequences of failing to renew the United States-Mexico-Canada Agreement (USMCA), arguing that non-renewal would significantly increase tariff uncertainty and harm American consumers, businesses, and the broader economy. The USMCA governs trade relationships between the three North American nations, and its expiration without renewal would revert trade conditions to less favorable terms, raising effective tariff rates on goods crossing borders. The piece highlights how increased tariffs function as a tax burden on Americans, disrupting supply chains, raising consumer prices, and undermining business investment planning across key industries reliant on North American trade flows.
IRS roundup: June 10 – June 21, 2026
This IRS roundup covers key developments from June 10–21, 2026, summarizing recent IRS guidance, rulings, notices, and administrative actions. The roundup likely encompasses updates on tax enforcement, compliance requirements, taxpayer obligations, and procedural matters issued by the Internal Revenue Service during this two-week period. Such roundups typically capture revenue procedures, private letter rulings, chief counsel advice, and any notable IRS announcements affecting individual and business taxpayers in the United States, providing practitioners and taxpayers with a consolidated overview of the latest federal tax developments.
The tax gap is getting worse – and by more than we thought
The article examines the UK's tax gap, which represents the difference between taxes owed and taxes actually collected by HMRC. It argues that the tax gap is worsening more significantly than official figures suggest, critically analysing HMRC's measurement methodology and highlighting concerns about underreporting. The piece raises questions about compliance enforcement effectiveness and resource allocation within HMRC. It suggests that the true scale of uncollected tax revenue poses a serious fiscal challenge for the UK government, with implications for public finances and the fairness of the tax system.
Taxfyle Launches Plan, an AI-Native Tax Strategy Platform Built to Streamline RIA Tax Planning Workflow
Taxfyle has launched Plan, an AI-native tax strategy platform designed to streamline tax planning workflows for Registered Investment Advisors (RIAs). The platform aims to automate and enhance tax planning processes, enabling RIAs to deliver more efficient and comprehensive tax strategies to their clients. By integrating AI capabilities, Plan seeks to reduce manual effort in tax workflow management, improve accuracy, and allow financial advisors to scale their tax planning services. The tool represents a growing trend of AI-driven solutions targeting the intersection of financial advisory and tax compliance for wealth management professionals.
Supreme Court Tells Us What “Just Compensation” Means in a Tax Sale
The Supreme Court has issued a ruling clarifying the meaning of 'just compensation' in the context of a tax sale, addressing what property owners are entitled to receive when the government seizes and sells property for unpaid taxes. The decision has significant implications for property tax enforcement and taxpayer rights, particularly regarding whether former owners can claim surplus proceeds from tax sales. The ruling provides constitutional guidance on the Fifth Amendment takings clause as applied to tax collection proceedings.
UK Aims To Modernize Tax Framework For Distributions
The UK government is consulting on modernizing its tax framework governing corporate distributions, aiming to simplify and update rules that determine how companies distribute profits to shareholders. The initiative seeks to address outdated legislation, reduce complexity, and ensure the framework reflects contemporary business structures. HMRC and HM Treasury are inviting stakeholder input on potential reforms, which could affect dividend taxation, distribution definitions, and related corporate tax treatment. The modernization effort is part of broader UK tax simplification objectives and could have significant implications for corporate planning and shareholder returns.
EU Small Parcel Levy and National Handling Fees
The EU is introducing a small parcel levy targeting low-value goods imported from outside the EU, particularly affecting e-commerce shipments from platforms like Temu and Shein. The levy aims to address the removal of the €22 VAT exemption and create a fairer playing field for EU retailers. Member states may also impose national handling fees on top of the EU-wide charge. The changes have significant implications for cross-border e-commerce businesses, customs compliance, and VAT obligations on low-value consignments entering the EU single market.
From 4% Random Selection to 100% Audit Risk: How CRA’S AI-Driven Audits Are Changing Tax Enforcement for Canadians
The Canada Revenue Agency (CRA) has shifted from randomly selecting approximately 4% of tax returns for audit to deploying AI-driven systems capable of flagging virtually all returns for potential review. This transformation in tax enforcement uses machine learning to analyze patterns, cross-reference data sources, and identify anomalies in taxpayer filings. The change significantly raises audit risk for Canadian individuals and businesses, moving away from chance-based selection toward systematic, data-driven targeting. Tax professionals warn that the new approach demands greater accuracy and documentation in filings, as the CRA's enhanced analytical capabilities can detect inconsistencies that previously went unnoticed.
California Billionaire Tax Qualifies for November Ballot
A California ballot initiative targeting billionaires has qualified for the November election. The measure would impose a new tax on ultra-high-net-worth individuals in California, reflecting ongoing state-level efforts to increase tax burdens on the wealthiest residents. This follows broader national and global conversations around wealth taxes and redistribution. If passed, it would represent a significant shift in California's personal income tax landscape, potentially affecting billionaires' residency decisions and investment behavior. The initiative underscores California's history of progressive tax experimentation and adds to the debate over whether wealth taxes are economically effective and constitutionally viable.
Switzerland – VAT rates increase
Switzerland has implemented an increase in its VAT rates, impacting businesses and consumers operating within the country. The rate adjustment reflects changes to the Swiss VAT framework, requiring companies to update their invoicing, accounting, and compliance processes accordingly. Businesses trading in Switzerland must ensure their systems reflect the new rates to avoid errors in tax filings and potential penalties. The increase affects the standard rate as well as potentially reduced rates applicable to specific goods and services. Companies with Swiss operations should review contracts, pricing structures, and ERP configurations to ensure full compliance with the updated VAT legislation.
UK Seeks To Restore Capital Gains Deferrals For Share Gifts
The UK government is seeking to restore capital gains tax deferral relief for gifts of shares, a provision that had been curtailed. The consultation targets holdover relief rules that allow individuals gifting shares in qualifying businesses to defer CGT liabilities, passing the gain to the recipient. The proposed restoration aims to support business succession and entrepreneurship by reducing the immediate tax burden on share transfers. HMRC is gathering stakeholder views on the scope, conditions, and potential anti-avoidance measures associated with reinstating this relief within the personal capital gains tax framework.
Guidance: Compliance checks: Corresponding with HMRC electronically — CC/FS83 DSC2
HMRC has issued guidance (CC/FS83 DSC2) detailing how taxpayers and agents can correspond electronically with HMRC during compliance checks. This factsheet expands on digital communication options beyond email, covering secure online channels and the protocols governing electronic exchanges in a compliance context. It is part of HMRC's compliance checks factsheet series and aims to clarify acceptable electronic communication methods, consent procedures, and data security responsibilities for taxpayers engaged in UK tax investigations or audits.
Businesses: Changes are coming to the way you access Business Registration Online
The Canada Revenue Agency (CRA) is updating how businesses access Business Registration Online (BRO), its digital portal for registering for tax accounts including GST/HST, payroll, and corporate accounts. Businesses will need to adapt to new login or authentication methods to continue using the service. This change affects how Canadian businesses manage their tax registrations and maintain compliance with federal tax obligations. The update is part of the CRA's broader effort to modernize and secure its digital infrastructure for business taxpayers.
El CIAT participó en la 30.ª Asamblea General de la IOTA en Hungría
CIAT (Inter-American Center of Tax Administrations) participated in the 30th General Assembly of IOTA (Intra-European Organisation of Tax Administrations) held in Hungary. The event brought together tax administration representatives from multiple countries to discuss cooperation, best practices, and shared challenges in tax administration. CIAT's participation underscores ongoing efforts to strengthen international collaboration between tax bodies across different regions, fostering dialogue between Latin American and European tax authorities on common administrative and policy issues.
Blue J and CPA.com Survey Finds AI Adoption Among Tax Firms Has Nearly Doubled in One Year
A survey by Blue J and CPA.com reveals that AI adoption among tax firms has nearly doubled within a single year, signaling a rapid shift in how tax professionals approach their work. The findings highlight growing confidence in AI tools for tax research, compliance, and advisory services. The acceleration reflects broader trends in the profession toward automation and technology-driven efficiency. The survey underscores that tax firms are increasingly integrating AI into core workflows, raising questions about talent, training, and the future of tax practice delivery as adoption continues to outpace expectations across the industry.
Policy paper: Directions under section 43E of the Taxes Management Act 1970 and regulation 65A(5) and (6) of the Income Tax (Pay As You Earn) Regulations 2003 and Regulation 189 of the Income Tax (Pay As You Earn) Regulations 2003
HMRC has published a policy paper providing directions under section 43E of the Taxes Management Act 1970 and related PAYE regulations. The directions concern employer obligations under the Pay As You Earn system, specifically addressing reporting requirements and procedural rules for payroll administration. Regulations 65A(5), 65A(6), and 189 of the Income Tax (PAYE) Regulations 2003 govern how employers must handle real-time information submissions and related compliance matters. This technical guidance clarifies HMRC's formal directions to ensure employers meet their statutory payroll reporting obligations under UK tax law.
Government backs high street with acceleration of cheap import reforms and crackdown on dodgy online sellers
The UK government has announced plans to accelerate reforms targeting cheap imports and online marketplace sellers, addressing concerns about unfair competition with domestic high street retailers. Key measures include closing the de minimis customs threshold loophole that allows low-value imports to enter the UK without duties, and cracking down on non-compliant overseas sellers on online platforms. The reforms aim to level the playing field by ensuring overseas sellers collect and remit VAT and comply with product safety rules, with online marketplaces facing greater liability for seller compliance.
UK Seeks Input On Potential Customs Updates
The UK government is consulting on potential updates to its customs framework, inviting industry and stakeholder input on possible reforms. The review covers areas such as customs procedures, import and export rules, and simplification of existing trade processes following Brexit. HMRC and HM Treasury are assessing whether current customs legislation adequately supports modern trade flows and business needs. The consultation could lead to legislative changes affecting importers, exporters, and supply chain operators, with implications for customs duty liabilities, compliance obligations, and the broader UK trade environment.
Taxand Indirect Tax Insight Newsletter: Q2 2026 edition
Taxand's Q2 2026 Indirect Tax Insight Newsletter covers the latest developments in indirect taxation across multiple jurisdictions. The publication, produced by Taxand's global network of independent tax firms, typically addresses VAT and GST updates, regulatory changes, and compliance considerations affecting businesses internationally. As a quarterly indirect tax roundup, it provides practitioners and in-house tax professionals with insights on legislative changes, case law, and administrative guidance relevant to indirect tax planning and compliance across Taxand's member countries.
Policy paper: Summary of tax update 2026: simplification, modernisation and fairness
The UK government has published a summary of its 2026 tax update package focused on simplification, modernisation, and fairness across the tax system. The package covers multiple tax areas including income tax, capital gains tax, VAT, and business taxation. Measures aim to reduce administrative burdens for taxpayers and HMRC, modernise outdated rules, and improve fairness in the tax system. The update reflects the government's broader agenda to reform UK tax policy following consultations and the Spring Statement, consolidating announcements across various tax heads into a single overview document.
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