Tax News Daily
The latest tax news from around the world, summarised and tagged for tax professionals. Updated twice daily.
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Plat UK Ltd v HMRC [2026] UKFTT 999 (TC) — luxury‑goods input VAT refused
UK First-tier Tribunal case Plat UK Ltd v HMRC [2026] UKFTT 999 (TC), in which HMRC successfully refused the claimant's input VAT recovery on purchases of luxury goods. The tribunal upheld HMRC's position, likely finding that the expenditure lacked a direct and immediate link to taxable business supplies, or that the purchases were for non-business or private purposes. The case reinforces HMRC's scrutiny of input tax claims on high-value discretionary items and serves as a reminder that VAT recovery on luxury expenditure requires demonstrable business purpose and a clear nexus to taxable activities.
VAT Zero-Rating Denied for Mental Health Facility: “Hospital” Exclusion Upheld
A case or ruling in which VAT zero-rating was denied to a mental health facility because it fell within a statutory exclusion for 'hospitals.' The decision upholds the interpretation that the facility's classification as a hospital-type entity prevents it from benefiting from zero-rated VAT treatment that might otherwise apply to certain healthcare or welfare services. The ruling clarifies the boundary between exempt, zero-rated, and excluded healthcare providers under VAT law, with significant implications for mental health operators structuring their services and managing irrecoverable VAT costs.
Non-disposal of confiscated vehicles costs FBR Rs12.6 billion in blocked revenue: AGP
Pakistan's Auditor General (AGP) has flagged that the Federal Board of Revenue's failure to dispose of confiscated vehicles has resulted in Rs12.6 billion in blocked revenue. The audit finding highlights an administrative and enforcement failure within FBR's customs operations, where seized assets remain undisposed, preventing the government from realizing their revenue value. The report raises accountability concerns over customs enforcement processes and asset management, pointing to systemic inefficiencies that are costing the Pakistani exchequer significant funds.
Judge Rules Trump IRS Immunity Deal Has No ‘Basis in Law’
A federal judge has ruled that a deal brokered by the Trump administration granting IRS immunity has no basis in law. The ruling challenges the legal foundation of the arrangement, which had implications for how the IRS conducts enforcement and accountability. The decision represents a significant development in tax administration and oversight, potentially affecting IRS operations and its legal protections. The case highlights tensions between executive authority and judicial review in the context of federal tax agency governance, with broader consequences for taxpayer rights and IRS enforcement practices in the United States.
IRS Experts Undervalued Ala. Land Gift, Partnership Says
A partnership is challenging IRS expert valuations in a dispute over a charitable land gift in Alabama, arguing the government's experts significantly undervalued the donated property. The case centers on the tax deduction claimed for the conservation easement or land contribution, with the partnership contending the IRS appraisers failed to properly assess fair market value. This dispute is part of broader IRS scrutiny of syndicated conservation easement transactions, where inflated land valuations have been a key enforcement focus. The outcome could affect the allowable charitable deduction and associated tax liability for the partnership's members.
Government Backs Tax Evader's Higher Sentence At 4th Circ.
The U.S. government is supporting a higher sentence for a tax evader at the Fourth Circuit Court of Appeals, arguing the original penalty was insufficient given the severity of the offense. The case involves deliberate tax evasion, with prosecutors contending that the sentence imposed at the district level failed to adequately reflect the defendant's conduct and the harm caused to federal tax revenues. The government's appeal signals continued aggressive enforcement posture in criminal tax matters. The Fourth Circuit's ruling could influence sentencing standards for tax evasion cases across the circuit.
Lahore ATIR rules Super Tax can be adjusted against income tax refunds
The Lahore Appellate Tribunal Inland Revenue (ATIR) has ruled that Pakistan's Super Tax can be adjusted against income tax refunds owed to taxpayers. This decision has significant implications for companies subject to the Super Tax introduced in recent fiscal years, clarifying the mechanism by which Super Tax liabilities interact with existing income tax refund entitlements. The ruling provides relief to businesses by allowing offsetting of Super Tax dues against refunds, reducing immediate cash outflow obligations. The decision is expected to influence how tax authorities process refund claims and Super Tax assessments going forward.
Specialist Investigations Operational Guidance
This HMRC internal manual provides operational guidance for HMRC's Specialist Investigations unit, which handles complex, high-value, and sensitive tax investigations and inquiries. The guidance covers internal procedures, case handling, and investigative approaches used by specialist teams dealing with serious tax compliance issues, avoidance, and evasion. It is relevant to tax controversy and enforcement, outlining how HMRC conducts in-depth investigations into complex tax matters involving corporates and high-net-worth individuals. The manual serves as a reference for HMRC officers undertaking specialist investigation work.
Bin Maker Too Late To Appeal £161K Tax Bill, Tribunal Says
A UK tax tribunal has ruled that a bin manufacturer filed its appeal against a £161,000 tax bill too late, barring the company from contesting the assessment. The case centers on procedural compliance with appeal deadlines under UK tax law. The tribunal's decision highlights the strict time limits imposed on taxpayers seeking to challenge HMRC determinations, with failure to comply resulting in the loss of appeal rights regardless of the merits of the underlying tax dispute. The ruling serves as a cautionary reminder for businesses about the importance of timely action when disputing tax assessments.
Outdated Transfer Pricing Policies Create New Risks
Outdated transfer pricing policies pose significant risks for multinational companies as global tax environments evolve rapidly. Policies drafted years ago may no longer reflect current business operations, supply chain structures, or regulatory expectations. With increased scrutiny from tax authorities worldwide and the rollout of Pillar Two rules, companies relying on stale intercompany agreements risk audits, penalties, and double taxation. Regular reviews of transfer pricing documentation are essential to ensure alignment with the arm's length principle, updated functional analyses, and current economic conditions. Proactive policy updates help mitigate controversy risk and demonstrate compliance readiness to tax authorities.
Supreme Court Upholds GST Officers’ Arrest Powers, Declares Section 69 Constitutional
India's Supreme Court has upheld the constitutional validity of Section 69 of the GST Act, which grants GST officers the power to arrest individuals for tax offences. The ruling affirms that these arrest powers do not violate fundamental rights and are a legitimate enforcement mechanism under India's indirect tax framework. The decision is significant for GST compliance and enforcement, clarifying that tax authorities can detain suspects without requiring prior court approval in cases involving serious GST violations such as fraudulent input tax credit claims and tax evasion.
Trump-IRS Settlement Result Of Sham Suit, Judge Rules
A federal judge has ruled that a legal settlement between Donald Trump and the IRS was the product of a sham lawsuit, calling into question the validity of the agreement. The judge found that the suit lacked genuine adversarial intent, suggesting it may have been structured to manufacture a favorable tax outcome through collusive litigation rather than legitimate dispute resolution. The ruling raises significant concerns about the integrity of the settlement process and potential manipulation of tax controversy mechanisms. The decision could have broader implications for how courts scrutinize settlements between high-profile taxpayers and tax authorities.
Assessment in the Name of a Deceased Person Is a Nullity: ITAT Allows Legal Ground Even If Not Raised Before CIT(A)
India's Income Tax Appellate Tribunal (ITAT) has ruled that an assessment made in the name of a deceased person is a legal nullity, and this jurisdictional ground can be raised for the first time before the ITAT even if it was not argued before the Commissioner of Income Tax (Appeals). The tribunal affirmed that such fundamental legal defects go to the root of jurisdiction and cannot be waived by procedural omission. This ruling has significant implications for tax controversy proceedings in India, clarifying that invalid assessments against deceased taxpayers can be challenged at appellate stages regardless of earlier procedural history.
Delhi HC: GST Order Valid Even If Every Reply to SCN Is Not Discussed in Detail
The Delhi High Court has ruled that a GST order remains legally valid even if the adjudicating officer does not explicitly address every point raised in a taxpayer's reply to a Show Cause Notice (SCN). The court held that as long as the order demonstrates application of mind to the substantive issues, exhaustive point-by-point discussion is not mandatory. The judgment provides clarity on procedural standards in GST adjudication proceedings, offering guidance to both tax authorities and taxpayers on what constitutes a legally sufficient GST order in dispute resolution contexts.
Uganda Tax Appeals Tribunal Rejects URA’s Treatment of VAT/Income‑Tax Variances (Ericsson AB)
Uganda's Tax Appeals Tribunal has ruled against the Uganda Revenue Authority (URA) regarding its treatment of discrepancies between VAT and income tax returns filed by Ericsson AB. The tribunal rejected URA's approach of using variances between the two tax declarations as a basis for additional assessments, providing important guidance on how such cross-tax reconciliation differences should be handled. The decision offers clarity for multinational companies operating in Uganda on the limits of tax authority powers when reconciling VAT and corporate income tax filings.
UK FTT Refuses to Reinstate Struck‑Out Appeal Against Personal Liability Notice (Gwynne)
The UK First-tier Tribunal (FTT) has refused to reinstate an appeal that had previously been struck out against a Personal Liability Notice (PLN) in the case of Gwynne. PLNs are issued by HMRC to hold individuals personally liable for a company's tax debts, typically in cases of fraud or deliberate non-compliance. The tribunal declined to restore the appeal, leaving the personal liability notice in place. The decision underscores the strict procedural requirements appellants must meet to have struck-out cases reinstated before the FTT.
Madras High Court Upholds GST Registration Cancellation on Fabricated ITC Documents
India's Madras High Court has upheld the cancellation of a GST registration where the taxpayer was found to have used fabricated documents to claim fraudulent Input Tax Credits (ITC). The court affirmed the tax authority's decision, reinforcing that GST registration can be revoked where fraudulent ITC claims are substantiated by evidence of forged documentation. The ruling serves as a significant deterrent against ITC fraud in India's GST framework and confirms the judiciary's support for enforcement actions against taxpayers engaged in document fabrication.
Madras HC Upholds GST Demand Order, Rules ITC Claim Based on Fabricated Agreement Invalid
The Madras High Court has upheld a GST demand order, ruling that an Input Tax Credit (ITC) claim based on a fabricated agreement is invalid. The case involved a taxpayer attempting to claim ITC using documentation that was found to be fraudulent. The court affirmed tax authorities' position that ITC entitlement requires genuine, verifiable transactions supported by legitimate documentation. This ruling reinforces the legal standards for ITC claims under India's GST framework and signals judicial support for tax authority scrutiny of suspicious or fabricated arrangements used to improperly reduce GST liabilities.
Singh: Weaponization of Taxation (Sovereign Tax Immunity as a National Security Tool)
An academic article by Singh examining how sovereign tax immunity is being deployed as a national security instrument, exploring the 'weaponization' of taxation by state actors. The piece analyzes how governments leverage tax policy and sovereign immunity doctrines to advance geopolitical and security objectives, moving beyond traditional revenue-raising functions. This scholarship sits at the crossroads of international tax law, sovereign immunity doctrine, and national security, raising questions about how taxation can be used coercively or defensively in interstate relations and foreign policy contexts.
Gujarat HC: GST Refund Interest Must Be Computed from Original Refund Application Despite Court-Ordered Refiling
The Gujarat High Court has ruled that GST refund interest must be calculated from the date of the original refund application, even when a court has ordered the applicant to refile the claim. The judgment ensures taxpayers are not penalized for procedural refilings mandated by court orders, affirming that the interest computation clock begins at the initial application date. This decision protects taxpayer rights by preventing authorities from using court-directed refilings as a mechanism to reduce or delay interest obligations on legitimate GST refund claims.
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