Tax News Daily
The latest tax news from around the world, summarised and tagged for tax professionals. Updated twice daily.
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ECJ Case: Company director’s right to challenge VAT liability
A European Court of Justice case addresses whether a company director has the right to challenge a VAT liability assessment. The ruling has significant implications for how VAT debts can be pursued against individuals in their capacity as directors, particularly regarding procedural rights and the ability to contest underlying tax assessments. This case is relevant for directors of companies facing VAT enforcement actions across EU member states, as it clarifies the extent of personal liability exposure and the legal remedies available to individuals when tax authorities seek to recover VAT debts through director liability provisions.
Delhi HC Restores GST Registration of Tempo Owner, Citing Impact of Cancellation on Livelihood
The Delhi High Court has ordered the restoration of GST registration for a tempo (commercial vehicle) owner whose registration had been cancelled by authorities. The court emphasized that cancellation of GST registration directly impacts the individual's livelihood and ability to conduct business, warranting judicial intervention. The ruling highlights the courts' consistent approach of weighing the disproportionate hardship caused by GST registration cancellations on small business operators and self-employed individuals. The decision reinforces that tax authorities must consider humanitarian and livelihood factors before cancelling registrations, particularly for sole proprietors and small traders dependent on their registration for income.
Belgium’s E-Reporting pre-draft law approved
Belgium has approved a pre-draft law introducing e-reporting obligations, marking a significant step toward mandatory electronic invoicing and transaction reporting for businesses operating in the country. The legislation sets the groundwork for a structured digital reporting framework, aligning Belgium with broader European efforts to modernize VAT compliance and reduce the tax gap. Practitioners and businesses will need to prepare for upcoming technical and procedural requirements as the law progresses through the legislative process. The development is particularly relevant for companies with Belgian operations that must plan system updates and compliance workflows ahead of implementation deadlines.
A Matter of Balance: IRS Appeals Processes, Staffing Create Growing Concerns for Practitioners, Taxpayers
Practitioners and taxpayers are raising growing concerns about IRS Appeals processes and staffing shortfalls that are creating significant delays and imbalances in dispute resolution. The article examines how reduced staffing within IRS Appeals is affecting case timelines, access to hearings, and overall fairness in the tax controversy process. Tax professionals report difficulties securing timely appeals conferences and adequate engagement from Appeals officers. The situation points to systemic challenges within IRS administration that may undermine taxpayer rights and due process protections, prompting calls for resource investment and structural reform within the Appeals division.
Americans Don’t Know Their Taxes: A Third Fear They’ve Missed Deductions or Credits
A survey reveals significant gaps in Americans' tax literacy, with approximately one-third of respondents fearing they have missed eligible deductions or credits on their tax returns. The findings highlight widespread uncertainty around personal income tax filing, including confusion about qualifying expenses, available credits, and proper documentation. The data suggests many taxpayers may be over-paying due to lack of awareness rather than intentional non-compliance. The article points to an ongoing need for better taxpayer education and accessible guidance, with implications for tax preparers and advisors who serve clients with limited tax knowledge.
Arbitration Valid In Tax Privacy Suit, H&R Block Tells 9th Circ.
H&R Block is arguing before the Ninth Circuit that an arbitration clause is valid in a tax privacy lawsuit. The case centers on whether customers who allege H&R Block improperly shared their tax data with third parties must resolve their claims through arbitration rather than litigation. The outcome could have significant implications for how tax preparation firms handle data privacy disputes and whether class action litigation in tax-related privacy cases can be compelled to arbitration, affecting millions of taxpayers who use commercial tax preparation services.
IRS Lacks Expert Testimony In Easement Fight, Donor Says
A taxpayer involved in a conservation easement dispute is challenging the IRS in Tax Court, arguing that the government lacks qualified expert testimony to support its position. Conservation easement cases have been a major IRS enforcement priority, with the agency frequently contesting inflated deduction valuations. The absence of expert testimony could weaken the IRS's case significantly, potentially setting a precedent for how the agency must substantiate its valuation challenges in easement disputes and impacting a broader IRS campaign against syndicated conservation easement tax shelters.
Amgen To Pay $74M To End Investor Suit Over $10.7B Tax Bill
Amgen has agreed to pay $74 million to settle an investor lawsuit stemming from a $10.7 billion IRS tax bill dispute. The investor suit alleged that Amgen misled shareholders about its transfer pricing arrangements and the associated tax liabilities. The settlement resolves securities claims but does not address the underlying IRS transfer pricing dispute, which involves how Amgen allocated profits between its US operations and Puerto Rico subsidiary. The case highlights the compounding legal and financial risks pharmaceutical companies face when aggressive transfer pricing strategies attract major IRS scrutiny.
Trump Invokes Section 338 to Impose Additional Duties on Canadian Imports
President Trump has invoked Section 338 of the Tariff Act of 1930 to impose additional duties on Canadian imports, a rarely used statutory provision targeting countries with discriminatory trade practices. This development is significant for importers as it represents a distinct legal basis for tariffs beyond the more commonly used Section 232 or Section 301 authorities. Importers of Canadian goods must assess their exposure to these additional duty layers, review classification and valuation strategies, and consider supply chain restructuring. The action escalates US-Canada trade tensions and creates immediate compliance obligations and cost implications for businesses relying on cross-border trade flows.
DOJ and DHS Publish Comprehensive Trade Fraud Enforcement Guide: What Importers Need to Know
The DOJ and DHS have jointly published a comprehensive trade fraud enforcement guide aimed at importers, signaling heightened federal scrutiny of customs compliance. The guide addresses schemes such as undervaluation, misclassification, country-of-origin fraud, and duty evasion, outlining enforcement mechanisms including False Claims Act liability, seizures, and criminal prosecution. For importers, the guide serves as a clear signal that trade fraud enforcement is intensifying across agencies. Businesses should audit their import practices, strengthen internal controls, and ensure customs broker relationships are properly managed to mitigate exposure to civil and criminal penalties under the outlined frameworks.
Why Does Netflix Cost More in Some State? The Messy World of Streaming Taxes
Streaming service prices vary across US states due to inconsistent taxation of digital entertainment. States differ widely in how they classify and tax streaming subscriptions, with some applying sales tax, others using specific digital goods taxes, and many exempting services entirely. This creates a patchwork of compliance obligations for providers like Netflix and Hulu, and directly affects consumer pricing. The article explores which states tax streaming, the rates applied, and the legislative trends driving broader adoption of streaming taxes as states seek revenue from digital consumption shifting away from traditionally taxed physical media.
The WHO’s Excise Tax Policy Aims at the Wrong Target
The Tax Foundation critiques the World Health Organization's excise tax policy on tobacco, arguing it misses its intended target. The article examines the EU's tobacco excise tax framework and how WHO guidance shapes member state policy, contending that the approach is economically flawed or counterproductive. The analysis challenges the assumption that higher excise taxes effectively reduce tobacco consumption or improve public health outcomes, suggesting the policy design is misaligned with its stated goals and may have unintended consequences for consumers and tax revenues across EU member states.
How CRA’s Expanded Section 160 and Budget 2025 Supplementary Rule Closes Asset Transfer Loopholes
Canada's Budget 2025 introduces a supplementary rule expanding Section 160 of the Income Tax Act, which holds transferees jointly liable for a transferor's tax debts when assets are transferred at below fair market value. The CRA's expanded provision closes loopholes that allowed taxpayers to shift assets to non-arm's-length parties to avoid tax collection. The new rule targets additional transfer scenarios previously outside Section 160's scope, strengthening the CRA's ability to pursue tax debts through asset transfers. Practitioners advising on estate planning, corporate restructuring, or family wealth transfers must reassess strategies that rely on asset transfers to related parties.
Gambling Loss Limitations Condemned at IRS Hearing
At an IRS public hearing, taxpayers and advocates strongly criticized proposed regulations that would limit the deductibility of gambling losses. The rules, which restrict how session-based losses can be offset against winnings, drew condemnation from affected individuals and industry representatives who argued the limitations are overly burdensome and inconsistent with longstanding tax treatment. Commenters contended the proposals would result in taxation on phantom income, disproportionately harming casual gamblers. The hearing reflects ongoing tension between IRS rulemaking and taxpayer fairness concerns under existing personal income tax provisions governing gambling activity.
New Section 232 Proclamation Creates Onshoring Incentives for U.S. Primary Aluminum Production
A new Section 232 proclamation introduces onshoring incentives targeting U.S. primary aluminum production, modifying existing national security-based tariff measures. The proclamation creates preferential treatment or reduced tariff rates for domestic producers as an incentive to reshore aluminum manufacturing capacity to the United States. This represents a significant customs and trade policy development with direct implications for importers, domestic manufacturers, and supply chain planners navigating Section 232 aluminum tariff obligations and compliance strategies.
Arbitrage Betting and Surebetting in Canada: How the CRA Taxes ‘Guaranteed-Profit’ Sports Wagering Strategies
This article examines how the Canada Revenue Agency (CRA) treats profits from arbitrage betting and surebetting strategies, where bettors exploit odds differences across bookmakers to lock in guaranteed profits. The CRA generally does not tax casual gambling windfalls, but arbitrage betting may be classified as business income when conducted systematically and with a profit motive. The article outlines the factors the CRA uses to distinguish hobby gambling from a taxable business activity, including frequency, organization, and intent. Practitioners advising clients engaged in sports wagering arbitrage should assess whether such income is reportable under the Income Tax Act.
South Carolina enacts “Heirs’ Property Tax Relief Act”
South Carolina has enacted the Heirs' Property Tax Relief Act, providing tax relief for property owners who hold land through heirs' property arrangements — a common situation where property passes without a formal will, leaving multiple family members as co-owners without clear title. The legislation addresses property tax challenges faced by these owners, who have historically struggled to access homestead exemptions and other tax benefits due to unclear title status. The act aims to ensure heirs' property owners can qualify for applicable property tax exemptions and relief programs, offering meaningful financial protection to affected families, often in rural and lower-income communities.
FBR excludes FTA, PTA customs concessions from 2026 tax expenditure report
Pakistan's Federal Board of Revenue (FBR) has excluded customs concessions granted under Free Trade Agreements (FTAs) and preferential trade arrangements (PTA) from its 2026 tax expenditure report. This decision affects transparency around revenue foregone through trade-related customs exemptions, raising questions about the completeness of Pakistan's tax expenditure accounting. The exclusion means that significant customs duty waivers extended to trading partners under bilateral and multilateral agreements will not be quantified or disclosed in the official report, potentially understating the true fiscal cost of Pakistan's trade concession regime.
Say ‘I do’ to getting your side hustle tax right
HMRC is targeting individuals with side hustles to ensure they correctly report and pay tax on additional income. The campaign reminds UK taxpayers that income from activities such as selling goods online, freelancing, or renting property may be taxable and must be declared via Self Assessment. HMRC is using data-matching and digital platform reporting rules to identify undeclared income. The guidance outlines thresholds, registration obligations, and penalties for non-compliance, making it relevant for personal tax practitioners advising clients with secondary income streams beyond their primary employment.
France: Recodification of VAT into the CIBS might be postponed.
France is considering postponing the recodification of VAT rules into the new Code des Impositions sur les Biens et Services (CIBS). The CIBS project aimed to consolidate and modernize French indirect tax legislation into a single, clearer legal framework. The potential delay signals administrative and legislative challenges in completing this significant structural reform of French VAT law. Practitioners operating in France should monitor developments closely, as the timeline shift may affect compliance planning and any anticipated simplifications or changes that were expected to accompany the recodification process.
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