Tax News Daily
The latest tax news from around the world, summarised and tagged for tax professionals. Updated twice daily.
Tax Head
Region
Surat ITAT: Delay in Filing Form 10B Not a Valid Ground to Deny Section 11/12 Exemption
The Surat Income Tax Appellate Tribunal (ITAT) ruled that a delay in filing Form 10B cannot be used as a valid ground to deny tax exemptions under Sections 11 and 12 of the Income Tax Act, which relate to exemptions for charitable and religious trusts in India. The tribunal emphasized that procedural delays in submitting audit reports should not override substantive eligibility for exemptions, providing relief to qualifying entities. This decision reinforces a taxpayer-friendly interpretation of compliance requirements, distinguishing between procedural lapses and substantive non-compliance in the context of charitable organization tax benefits.
The New York Pied-à-Terre Tax: What You Should Know
New York's proposed pied-à-terre tax targets non-primary residential properties owned by non-residents, particularly high-value secondary homes in New York City. The tax aims to generate revenue from wealthy out-of-state and foreign owners who maintain luxury properties in the city without contributing to local income tax bases. The article examines the structure of the proposed levy, its rate tiers based on property value, constitutional and legal considerations, and potential revenue implications. It also explores comparisons with similar taxes in other jurisdictions and the political dynamics surrounding its passage in the New York legislature.
Don’t Let Form 16 Decide Your Tax Liability!
This article cautions Indian taxpayers against relying solely on Form 16 — the employer-issued certificate of tax deducted at source — to determine their final tax liability. It highlights that Form 16 may not capture all income sources such as interest, capital gains, freelance earnings, or rental income. Taxpayers are advised to independently calculate their total income, verify deductions claimed, and reconcile figures with Form 26AS and AIS before filing returns. The piece emphasizes personal responsibility in accurate tax filing, warning that discrepancies can trigger notices from the Income Tax Department and result in penalties or additional tax demands.
Brauner: A Purpose-based Reform of Income Sourcing Rules
Professor Brauner proposes a purpose-based reform of U.S. income sourcing rules, which determine how cross-border income is allocated between jurisdictions for tax purposes. The reform aims to align sourcing rules with the underlying economic purposes of income categories, addressing inconsistencies in the current framework. Sourcing rules are critical in international taxation as they affect foreign tax credit calculations, withholding obligations, and treaty interactions. The proposal has implications for both corporate and individual taxpayers engaged in cross-border transactions, and touches on broader U.S. international tax policy debates.
The OBBBA’s Trump Accounts Open on July 4
The One Big Beautiful Bill Act (OBBBA) introduces 'Trump Accounts,' tax-advantaged savings accounts for children that opened on July 4, 2026. The accounts are part of broader U.S. tax legislation and represent a new personal tax incentive aimed at encouraging long-term savings from birth. Structurally similar to existing tax-advantaged vehicles, these accounts carry specific eligibility rules and contribution limits. The OBBBA represents a significant legislative development in U.S. personal income and savings tax policy, with downstream implications for financial planning and tax compliance for American families.
WSJ: Why a Couple Lost a $200,000 Tax Battle Over Their Horses
A couple lost a $200,000 tax battle involving their horses, highlighting IRS scrutiny of hobby loss deductions. The case likely turned on whether the horse-related activity constituted a legitimate business or a hobby under IRC Section 183, which disallows deductions for activities not engaged in for profit. Courts apply a multi-factor test examining profit motive, time devoted, expertise, and history of income or losses. Such cases are a recurring area of tax controversy, as taxpayers frequently attempt to deduct losses from equestrian, farming, or similar pursuits against other income, drawing IRS challenges and litigation.
37 ways Andy Burnham could raise £4.7bn
This article explores 37 potential tax-raising measures Andy Burnham, Mayor of Greater Manchester, could implement to generate £4.7 billion in revenue. The piece examines various fiscal options available at regional and national levels, covering a broad range of tax mechanisms including property taxes, income levies, and other revenue-raising tools. The analysis appears to assess the political and practical feasibility of different approaches, situating Burnham's potential fiscal agenda within the broader UK debate about devolution, local government funding, and taxation powers available to metro mayors and regional authorities.
Employment Income Manual
HMRC's Employment Income Manual is a comprehensive internal guidance resource covering the taxation of employment income in the UK. It addresses the rules for taxing salaries, benefits in kind, expenses, termination payments, share schemes, and other remuneration received by employees. The manual guides HMRC officers and is publicly available as a reference for employers, payroll professionals, and advisers. It covers personal income tax and payroll withholding obligations under PAYE, making it a key compliance reference for employment-related tax matters in the UK.
MDDP Webinar: B2B Reclassification into Employment: Dispute, Penalties and Tax Impact (VAT & Personal) (July 15)
MDDP is hosting a webinar on July 15 examining the tax consequences of reclassifying B2B contractor relationships as employment arrangements. The session will cover dispute resolution processes, potential penalties, and the dual tax impact spanning both VAT and personal income tax. This is particularly relevant for businesses and contractors in Poland facing increased scrutiny from tax authorities over the genuine nature of self-employment arrangements. Attendees will gain insight into audit risks, how to defend existing structures, and the financial exposure arising from reclassification decisions by tax authorities.
CBDT Condones Delay in Filing Form 10AB for 80G Approval Renewal
India's Central Board of Direct Taxes (CBDT) has issued a condonation order allowing taxpayers to file Form 10AB beyond the prescribed deadline for renewal of 80G approval, which grants income tax exemption status to charitable and religious organizations. The relief addresses situations where trusts and institutions missed filing deadlines, potentially losing their tax-exempt status. CBDT's condonation prevents undue hardship on qualifying non-profit entities by restoring their eligibility to receive tax-deductible donations. This administrative relief underscores the board's discretionary powers to waive procedural delays in genuine cases.
Inside the numbers: Pakistan hits 8.2 million active taxpayers
Pakistan has reached a milestone of 8.2 million active taxpayers, reflecting efforts by the Federal Board of Revenue (FBR) to broaden the country's tax base. The figure represents growth in tax registration and compliance, driven by government initiatives to bring more individuals and businesses into the formal tax net. Despite this progress, Pakistan's taxpayer-to-population ratio remains relatively low, underscoring ongoing challenges in tax compliance and enforcement. Analysts note that expanding the active taxpayer base is critical to improving Pakistan's tax-to-GDP ratio and reducing reliance on indirect taxes and external borrowing.
After Newsom Couldn’t Stop It, California Braces for Billionaire Tax Brawl
California is preparing for a major political and legislative battle over a proposed 'billionaire tax' after Governor Gavin Newsom failed to prevent the measure from advancing. The initiative targets ultra-high-net-worth individuals in California, potentially imposing new wealth-based taxes on unrealized gains or assets. The fight reflects broader national debates over taxing the wealthy and marks a significant development in state-level personal income tax policy. Proponents argue it addresses inequality, while opponents warn of capital flight and constitutional challenges. The outcome could set a precedent for similar wealth tax measures in other U.S. states.
Bloomberg: North Carolina Targets Prediction Markets, Sports Betting Taxes
North Carolina is moving to expand its tax regime to cover prediction markets and sports betting revenues. The state is targeting these emerging gambling platforms to capture tax income from their growing activity. As prediction markets gain mainstream traction alongside established sports betting operations, lawmakers are examining how existing and new tax frameworks can apply to operators and potentially winnings. This reflects a broader trend of US states seeking to maximize revenue from legalized gambling sectors, ensuring that novel market formats do not escape taxation that traditional sports betting operators already face.
5.6 million taxpayers check their pay in the HMRC app an average of 18 times a year
HMRC reports that 5.6 million UK taxpayers use the HMRC mobile app to check their pay and tax details, averaging 18 visits per year. The app enables users to view PAYE tax codes, income and tax paid, and National Insurance records. This development highlights growing digital engagement with personal tax administration in the UK, reducing reliance on paper correspondence and phone inquiries. The data underscores HMRC's push toward self-service digital tools as part of its broader modernisation strategy for personal income tax management.
Famed Chef Hit With $1M Judgment In Boston Tax Case
A celebrated chef has been hit with a $1 million judgment in a Boston tax case, following legal proceedings related to tax obligations tied to their culinary business operations. The judgment reflects unpaid taxes and associated penalties assessed against the high-profile defendant. The case highlights the personal tax liability exposure that prominent restaurant and hospitality entrepreneurs face, including issues around income reporting, payroll compliance, or sales tax remittance. The ruling serves as a cautionary example of the financial consequences of unresolved tax disputes for individuals in the food and beverage industry.
Accredited official statistics: Inheritance Tax liabilities statistics
HMRC is releasing accredited official statistics on Inheritance Tax (IHT) liabilities in the UK. These statistics provide data on the number of estates liable for IHT, total tax liabilities, and trends over time. With recent policy changes including frozen nil-rate bands and proposed reforms to agricultural and business property reliefs, IHT has become a focal point in UK tax policy debate. The statistics serve as an essential resource for policymakers, advisers, and researchers assessing the fiscal and distributional impact of inheritance taxation.
Silent Correction or Legislative Clarification? The Curious Case of “Person” vs “Persons” in the New Income Tax Act, 2025
This article examines a nuanced legislative drafting issue in India's new Income Tax Act, 2025, focusing on whether the use of 'person' versus 'persons' represents a silent correction or intentional legislative clarification. The distinction carries significant legal implications for tax liability, interpretation of statutory provisions, and how tax authorities may apply the law to individuals versus groups. The article explores how such seemingly minor textual changes can alter the scope of taxation, affect taxpayer rights, and potentially influence judicial interpretation and tax controversy outcomes under the revised Indian income tax framework.
Can Section 69C Be Invoked Merely Because Purchases Are Alleged to Be Bogus?
This article analyzes whether Section 69C of India's Income Tax Act — which deals with unexplained expenditure — can be invoked solely on the basis that purchases are alleged to be bogus. It examines judicial precedents and the evidentiary threshold required before tax authorities can treat expenditure as unexplained and add it back to taxable income. The article argues that mere allegations of bogus purchases, without substantive evidence, may not be sufficient to trigger Section 69C, highlighting important taxpayer protections and the standards tax authorities must meet in such controversy cases.
IRS Signals Preparations for Potential Kwong Refunds as July 10 Deadline Approaches
The IRS is signaling preparations for potential refunds related to the Kwong case, with a July 10 deadline approaching. The Kwong litigation concerns taxpayers who may be entitled to refunds based on the court's ruling, and the IRS is taking administrative steps to process qualifying claims. Taxpayers and practitioners should be aware of the deadline and ensure any eligible refund claims are properly filed or preserved. The development has implications for tax controversy strategy, as it highlights how litigation outcomes can trigger IRS administrative action and create time-sensitive opportunities for affected taxpayers to recover overpaid taxes.
What 250 Years of Tax History Reveal About the US Tax Code
Drawing on 250 years of American fiscal history, this Tax Foundation piece examines the evolution of the US tax code from the nation's founding to the present day. It traces major milestones including early tariff reliance, the introduction of the federal income tax via the 16th Amendment, the expansion of payroll taxes, and successive waves of tax reform. The article uses this historical lens to highlight how complexity, political compromise, and shifting economic priorities have shaped the current code, offering context for ongoing debates about fundamental tax reform in the United States.
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.