Tax News Daily
The latest tax news from around the world, summarised and tagged for tax professionals. Updated twice daily.
Tax Head
Region
Confusing CP53E Notices from IRS Results in AICPA Requesting Adjustments and Offering Recommendations on Their Use
The AICPA has raised concerns about confusing CP53E notices issued by the IRS, which relate to electronic payment processing issues. The professional body is requesting the IRS make adjustments to how these notices are drafted and used, citing that the current format is misleading taxpayers and practitioners. The AICPA has submitted formal recommendations to improve clarity and reduce unnecessary compliance burden. CP53E notices are sent when the IRS cannot process a direct debit payment, and unclear communications have led to taxpayer confusion about their obligations and potential penalties.
Alabama temporarily suspends state sales tax on food
Alabama has temporarily suspended its state sales tax on food, providing short-term relief to consumers on grocery purchases. The suspension reflects ongoing debate in the US about whether food should be exempt from sales tax as a matter of affordability and tax equity. Alabama is one of only a few remaining states that still levies a full state sales tax on groceries. This temporary measure may signal broader legislative movement toward a permanent exemption, following trends in other states that have reduced or eliminated food-related sales taxes to ease cost-of-living pressures on lower-income households.
VAT & Real Estate: The Importance of Contract Details
This article examines how contract details critically determine VAT treatment in real estate transactions. The specific wording of agreements can affect whether a transaction is treated as a taxable supply or an exempt one, influencing input tax recovery rights for buyers and VAT liability for sellers. Key considerations include the distinction between the sale of new versus old properties, option-to-tax elections, and the treatment of mixed-use developments. Errors or ambiguities in contract language can lead to unexpected VAT costs, disputes with tax authorities, and potential penalties, making precise drafting essential for both parties in property deals.
Court of Appeal overturns TOMS decisions on ride-hailing – Bolt Services
The UK Court of Appeal has overturned earlier tribunal decisions regarding the application of the Tour Operators' Margin Scheme (TOMS) to ride-hailing services provided by Bolt. The case examines whether Bolt, as a platform facilitating passenger transport, qualifies for TOMS VAT treatment—a margin scheme originally designed for travel businesses buying and reselling travel services as principal. The Court of Appeal's ruling has significant implications for the gig economy and platform businesses, clarifying how VAT applies to digital intermediaries in the transport sector and potentially affecting the VAT compliance obligations of similar ride-hailing operators.
Comments on T-184/25 (A) – Management of Securitised Mortgages is Taxable
This article comments on case T-184/25 (A), addressing whether the management of securitised mortgages constitutes a taxable supply for VAT purposes. The decision challenges the assumption that such management services fall within the VAT exemption for financial services. The ruling suggests that active management of securitised mortgage portfolios goes beyond passive administration, making it taxable rather than exempt. This has material implications for financial institutions and special purpose vehicles involved in securitisation structures, affecting their VAT recovery positions, pricing of management fees, and overall structuring of mortgage-backed securitisation transactions.
VATupdate presents: 4apps
VATupdate presents 4apps, a tax technology solution designed to support VAT compliance processes. The article introduces the platform's capabilities, which appear aimed at streamlining VAT reporting, data management, and compliance workflows for businesses. As tax authorities increasingly demand real-time or near-real-time data submission and e-invoicing compliance, tools like 4apps help organisations manage complex VAT obligations efficiently. The feature highlights the growing role of purpose-built tax technology in helping finance and tax teams reduce manual effort, improve accuracy, and meet evolving regulatory requirements across multiple jurisdictions.
Can’t pay your tax debt right away? We have options to help you – including the Manage balance service
The Canada Revenue Agency (CRA) highlights options available to taxpayers who cannot immediately pay their tax debt. The agency promotes its 'Manage balance' service, which allows individuals to view their balance owing and set up payment arrangements online. The CRA emphasizes that contacting them early can help avoid penalties and interest accumulation. Options include payment plans, pre-authorized debit, and other flexible arrangements. The article encourages taxpayers to use My Account on the CRA portal to manage outstanding balances, underscoring the agency's efforts to make tax debt resolution more accessible and digitally streamlined for Canadian taxpayers.
Last Call: Businesses Have Until July 6 to Address R&E Deductions for Prior Years
A deadline alert for U.S. businesses regarding Research and Experimentation (R&E) deductions under IRC Section 174. Following the 2017 Tax Cuts and Jobs Act changes requiring capitalization and amortization of R&E expenditures from 2022 onward, the IRS has set July 6 as a critical deadline for businesses to file automatic accounting method changes (Form 3115) to address prior-year R&E deductions. Companies that miss this window risk losing the ability to correct their tax treatment for earlier years, potentially resulting in significant lost deductions and increased tax liability.
Controversial California Billionaire Tax Proposal Declared Eligible for the November Ballot
A controversial California ballot proposal targeting billionaires has been declared eligible for the November election. The measure would impose additional taxes on ultra-high-net-worth individuals in California, making it one of the most aggressive state-level wealth tax proposals in the US. The initiative has sparked significant debate among policymakers, business groups, and tax advocates. If passed by voters, it could mark a landmark shift in California's personal income tax landscape and potentially influence similar proposals in other states, though critics warn it could drive wealthy residents to relocate.
HMRC publishes manual on trade between Northern Ireland and the EU
HMRC has published a new manual providing guidance on trade between Northern Ireland and the EU. The manual addresses the specific VAT and customs rules that apply under the Windsor Framework, which governs the unique trading arrangements for Northern Ireland following Brexit. It covers the movement of goods, applicable VAT treatments, and compliance obligations for businesses operating in this cross-border context. This guidance is particularly relevant for traders navigating the distinct regulatory environment that differentiates Northern Ireland from Great Britain in terms of EU single market access and associated indirect tax rules.
FTT rules on COVID-19 PPE relief, import VAT and equitable remission: 3V International [2026] UKFTT 815 (TC)
The First-tier Tribunal (FTT) has issued a ruling in 3V International [2026] UKFTT 815 (TC) concerning import VAT relief on COVID-19 PPE goods and the application of equitable remission. The case examined whether the taxpayer qualified for relief from import VAT on PPE imported during the pandemic and whether HMRC was obliged to apply equitable remission principles to reduce or waive the VAT liability. The tribunal's decision provides important guidance on the conditions and limits of COVID-related import VAT reliefs and the discretionary remission powers available to HMRC in exceptional circumstances.
Statutory guidance: Reference Documents for The Customs Tariff (Preferential Trade Arrangements) (EU Exit) Regulations 2020
This statutory guidance covers reference documents for the UK's Customs Tariff (Preferential Trade Arrangements) (EU Exit) Regulations 2020. It outlines the preferential tariff rates applicable under various trade agreements following the UK's departure from the EU. The documents serve as legal references for importers and customs practitioners determining applicable duty rates under preferential arrangements. This is directly relevant to UK customs and trade compliance, particularly for businesses importing goods under free trade agreements where reduced or zero tariff rates may apply based on rules of origin and bilateral trade deal provisions.
California Legislature Keeps ‘Hand Grenade’ Corporate Tax Proposal Alive for Next Governor
The California Legislature has kept alive a significant corporate tax proposal, positioning it as a major policy decision for the state's next governor. Described by critics as a 'hand grenade,' the proposal would substantially alter California's corporate tax structure. Legislators have advanced the measure without finalizing it, effectively passing the contentious decision to the incoming gubernatorial administration. The proposal reflects ongoing tensions in California over corporate taxation, state revenue needs, and business competitiveness, and could have major implications for corporations operating in the state depending on how the next governor chooses to proceed.
Orbitax Announces Partnership with Diligent to Streamline Legal Entity Data for Tax
Orbitax has announced a partnership with Diligent to integrate legal entity data management into tax workflows. The collaboration aims to streamline the flow of corporate structure and entity data from Diligent's entity management platform into Orbitax's tax technology solutions. This integration is designed to reduce manual data entry, improve accuracy, and enhance efficiency for tax teams managing complex multinational legal entity structures. By connecting entity governance data directly with tax compliance and reporting processes, the partnership addresses a key operational challenge for corporate tax departments handling large volumes of intercompany and structural information.
A Simple Change Could Reshape Social Security’s Future, O’Malley Says
Former Social Security Administration Commissioner Martin O'Malley argues that a straightforward change to Social Security's funding mechanism could significantly improve the program's long-term financial outlook. The proposal likely involves adjusting the payroll tax cap on earnings subject to Social Security contributions, which would require higher-income earners to pay into the system on a greater share of their wages. Such a change would have direct payroll tax implications for both employees and employers, and represents a key policy debate around the sustainability of Social Security funding in the United States.
Guidance: Tax and National Insurance contributions for MPs and ministers
This UK government guidance explains the tax and National Insurance contributions (NICs) treatment applicable to Members of Parliament and government ministers. It covers how their pay, allowances, and expenses are taxed, including what counts as taxable income and what may be exempt. Given that MPs and ministers have unique employment arrangements — including dual roles and parliamentary expenses — the guidance clarifies HMRC's position on their specific obligations under personal income tax and payroll/NIC rules, helping both officeholders and parliamentary administrators ensure correct tax treatment and compliance.
Guidance: Appendix 2: DE 1/11: Additional Procedure Codes of the Customs Declaration Service (CDS)
This HMRC guidance details Appendix 2 of the Customs Declaration Service (CDS), specifically covering DE 1/11 Additional Procedure Codes. These codes are used by traders and agents when completing customs declarations to indicate special procedures, reliefs, or treatments applicable to specific imports or exports. The guidance is essential for UK customs compliance, enabling accurate declaration of goods under various customs regimes including inward/outward processing relief and other special procedures. It is a technical operational document directly relevant to customs duty administration and trade compliance in the UK post-Brexit.
MDDP Webinar: B2B Reclassification into Employment: Dispute, Penalties and Tax Impact (VAT & Personal) (July 15)
MDDP is hosting a webinar on 15 July covering the tax implications of reclassifying B2B contractor relationships as employment. The session addresses disputes arising from such reclassifications, associated penalties, and the dual tax impact spanning both VAT and personal income tax. As tax authorities increasingly scrutinise disguised employment arrangements, businesses and contractors face significant exposure. The webinar aims to help participants understand compliance risks, dispute resolution options, and how reclassification affects input VAT recovery rights and personal income tax obligations for affected individuals and engaging businesses.
EU ECOFIN Report (12 June 2026): Indirect Taxation – Key VAT & Excise Developments
The EU ECOFIN meeting of 12 June 2026 produced key developments in indirect taxation, covering significant VAT and excise duty updates across member states. The report outlines progress on legislative initiatives, policy discussions, and regulatory changes debated at the ministerial level. Topics likely include VAT in the Digital Age (ViDA) implementation progress, excise duty harmonisation, and member state compliance matters. This report is essential reading for businesses and advisors monitoring EU-wide indirect tax policy developments and upcoming obligations that will affect cross-border trade and compliance within the single market.
Guidance: Self Assessment payment plan: service availability and issues
This UK government guidance addresses the availability and known issues with HMRC's Self Assessment payment plan service (Time to Pay), which allows taxpayers to spread personal tax liabilities over instalments. While it is primarily a service status update rather than a policy or legislative article, it has a direct tax angle as it affects taxpayers' ability to manage and settle personal income tax obligations through HMRC's digital infrastructure. The guidance is relevant to individuals relying on this facility to meet Self Assessment deadlines and avoid penalties.
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.