Tax Controversy news
Tax audits, disputes, appeals and litigation, including notable tribunal and court decisions, settlement practice and tax authority enforcement priorities, collected from the sources AskColm monitors.
1,181 articles in the archive, showing the latest 50.
62 Detained In €410M Electronics VAT Fraud, EU Says
European authorities detained 62 people in Portugal, Spain, and Italy suspected of orchestrating a VAT fraud scheme involving electronics that caused at least €410 million in tax losses across the EU. The operation was coordinated across multiple jurisdictions and announced…
New Fraud Division Flexes Might In Latest Enforcement Policy
The DOJ's National Fraud Enforcement Division has issued a new corporate enforcement policy focused on rapid pursuit of fraud cases using data analysis and expanded staffing. The policy broadens targets beyond traditional healthcare providers, signaling the division's growing influence within…
You Be the Tax Judge: The Verdict on a Money-Losing Horse Business
The US Tax Court ruled on a money-losing horse-breeding business, clarifying that sustained losses do not automatically classify an activity as a hobby. The decision is relevant to taxpayers engaged in activities with ongoing losses, as hobby classification disallows business…
A Warning for Importers: A CBP Prior Disclosure Does Not Count for DOJ
DOJ's National Fraud Enforcement Division issued Directive 26-12 on October 1, 2026, making trade fraud a corporate enforcement priority. Prosecutors must weigh ten factors when deciding whether to charge a company. Critically, a prior disclosure filed with CBP does not…
Sen. Scott Can Trim Booz Allen Tax Info Leak Suit, Judge Says
A federal judge ruled that Senator Rick Scott may proceed with a narrowed negligence claim against Booz Allen Hamilton over the leak of his tax returns by an IRS contractor. Other claims were trimmed to avoid overlap with separate litigation…
Buffalo Sues Feds Over NY Tribe's Land Sale's Status
The city of Buffalo is suing the federal government to reverse a decision placing a 3.8-acre waterfront property into restricted fee status for the Seneca Nation of Indians, a move that could remove the land from the city's tax rolls…
Credit for foreign tax: the curious case of Paul Bruyea
The US Court of Appeals, Federal Circuit ruled in Estate of Paul Bruyea v. United States (No. 25-1563) on August 31, 2026, addressing the foreign tax credit and double taxation. The case highlights an outcome that appears to run contrary…
US Drops Appeal Of $49M In Grants Won By Wind Farm
The U.S. government has dropped its Federal Circuit appeal regarding $49.4 million in renewable energy cash grants awarded to the country's second-largest wind farm, ending a 13-year dispute over the grant amount.
SaaS Subscription Fee Is Not “Royalty” Merely Because Technology Does the Work
ITAT Mumbai has ruled that SaaS subscription fees do not constitute 'royalty' simply because technology performs the underlying work. The tribunal held that access to a communication platform does not amount to use of a 'process' under Section 9(1)(vi) of…
Bolt Refused Chance To Appeal £190M VAT Ruling
The UK Supreme Court has refused Bolt's appeal over its claim to use a VAT margin scheme that would have reduced its estimated VAT liability of £190 million. The ruling is a significant blow to the ride-hailing company, which said…
Find out about the loan charge settlement scheme
HMRC has a settlement scheme for taxpayers with outstanding disguised remuneration loan charge liabilities, allowing them to resolve their position. The loan charge targets arrangements where employers paid workers via loans through third parties to avoid income tax and National…
Supreme Court: Tax Classification Must Be Based on Product Form at Time of Sale, Not Consumer’s Later Use
India's Supreme Court ruled that tax classification of a product must be determined by its form at the point of sale, not by how a consumer subsequently uses it. The ruling came while dismissing the Madhya Pradesh Commercial Tax Department's…
Calcutta HC Dismisses Revenue’s Appeal Against ITAT’s Deletion of Rs. 11.35 Cr Addition
The Calcutta High Court dismissed the revenue department's appeal against an ITAT order that deleted a Rs. 11.35 crore income tax addition made against businessman Suresh Kumar Banthia for assessment year 2020-21. The Division Bench noted that while strict rules…
Amazon Patron's Sales Tax Overcharge Suit Tossed, For Now
A Washington federal magistrate judge dismissed a proposed class action against Amazon alleging overcollection of Tennessee sales tax, finding the plaintiff failed to demonstrate the overcollection was motivated by profit or other business motives. The case was dismissed without prejudice.
Amazon Patron's Sales Tax Overcharge Suit Tossed, For Now
A Washington federal magistrate judge dismissed a proposed class action against Amazon alleging overcollection of Tennessee sales tax. The court found the plaintiff failed to show Amazon's alleged overcollection was motivated by profit or other business purposes. The case was…
Tax Court Upholds 100% Penalty in Payroll Tax Case
A US Tax Court has upheld a 100% penalty against a business owner for willful failure to remit payroll taxes. The ruling confirms that responsible parties can be held personally liable for trust fund taxes when nonpayment is deemed willful.
1st Circ. Skeptical Of Legal Basis For IRS-ICE Data Sharing
The First Circuit expressed skepticism at a hearing over the Trump administration's legal justification for sharing IRS tax records with ICE. The court questioned whether a tax code privacy exception for criminal investigations could be broadly used to access nearly…
Nonprofit's Ex-President Admits To Falsifying Tax Returns
A former president of a Telugu community nonprofit pleaded guilty in California federal court to conspiracy to defraud the US government. He falsified the organization's tax returns by reclassifying donor reimbursement expenditures as legitimate expenses.
Ex-Tenn. County Commissioner Gets 2 Years For Tax Evasion
A former Tennessee county commissioner was sentenced to two years in prison for tax evasion after failing to report approximately $311,000 in income to the IRS over five years. The unreported income came from grants the commission awarded to nonprofit…
HMRC large business compliance 2026: what the government’s response means for businesses
The UK government has accepted all seven recommendations from the Public Accounts Committee following its review of HMRC's large business tax compliance approach. The government's response endorses HMRC's compliance strategy while calling for further reform, with implications for how large…
11 Arrested In €100M Plastics VAT Fraud, EU Says
Italian authorities arrested 11 people suspected of evading €100 million in VAT on plastic product trades. The European Public Prosecutor's Office announced the detentions as part of an investigation into the fraud scheme.
GSTAT Ghaziabad Holds Departmental Appeal Not Maintainable Below Prescribed Rs. 20 Lakh Limit
The Goods and Services Tax Appellate Tribunal in Ghaziabad has ruled that a departmental appeal cannot be maintained where the disputed tax demand falls below the prescribed financial limit of Rs. 20 lakh, unless the revenue authority identifies an applicable…
European Court T-773/25 (Finanzamt für Großbetriebe) – Judgment – Late “Reverse charge” invoices cannot activate the triangular simplification
The European Court's T-773/25 judgment addresses a critical VAT issue: whether late-issued reverse charge invoices can retroactively activate the triangular simplification mechanism. The court ruled that such invoices cannot trigger triangular simplification with retroactive (ex tunc) effect, only ex nunc…
Non – Americans (Non-Residents Non-Citizens or NRNCs) Should Be Careful With US Structures
Non-Americans, including non-residents and non-citizens, are warned to exercise caution when considering US structures promoted by various service providers. Concerns have previously been raised about whether US asset protection structures are appropriate for this group.
Delhi ITAT Quashes Rs 1.13 Cr Additions Over Married Daughters’ Gold Jewellery Kept at Parents’ Home
The Delhi Bench of the Income Tax Appellate Tribunal has quashed additions of Rs 1.13 crore relating to jewellery and cash found during a National Investigation Agency search. The tribunal ruled that married daughters are entitled to keep their jewellery…
Allahabad ITAT Deletes Rs. 80.60 Lakh Addition Over One-Digit Error in ITR Sales Entry
The Allahabad Bench of the Income Tax Appellate Tribunal has deleted an addition of Rs 80.60 lakh that arose from a one-digit error in a sales entry on a tax return. The tribunal found the correct sales figure had already…
You Be The Tax Judge: They Loved Horses. They Lost Money. Was It Still A Business?
An Idaho couple continued to run a horse ranch over several years despite repeated financial losses. The IRS classified the operation as a hobby rather than a business, a distinction with significant tax implications. Readers are invited to decide who…
Linklaters to Paul Wurth: changing contours of India’s force of attraction rule
Legal experts from Lakshmikumaran & Sridharan analyse how the Paul Wurth ruling could affect the application of India's force of attraction rule and the attribution of profits under Indian tax treaties.
Minor League Hockey Team Ex-Owner Cops To Tax Fraud
The former majority owner of a minor league hockey team in Charlotte has pleaded guilty to tax fraud after admitting he filed a false return in 2020 that significantly understated his income, according to court records filed in the Western…
Mumbai ITAT Quashes Rs. 1.23 Crore Penalty, Says Tax Claim Rejection Alone Doesn’t Prove Concealment
The Income Tax Appellate Tribunal in Mumbai has ruled that rejecting a taxpayer's claim is not sufficient grounds to conclude that facts were concealed or a false explanation provided. The tribunal quashed a penalty imposed on Cyqurex Systems Pvt. Ltd.…
Court Supports VAT Exemption for Integrated Medical-Treatment Stays
A court has ruled in favor of VAT exemption for integrated medical-treatment stays, affirming that accommodation provided as part of a medical treatment package qualifies for exemption rather than being treated as a standard taxable hospitality service. The decision clarifies…
Agenda of the ECJ/General Court VAT cases – 2 Judgments, 1 AG Opinion, 1 Hearing till November 5, 2026
A scheduled overview of upcoming European Court of Justice and General Court VAT cases, covering two forthcoming judgments, one Advocate General opinion, and one hearing through to November 5, 2026. The agenda tracks significant VAT litigation at the EU level,…
Presumed Reasonable: How Nonprofits Earn the Benefit of the Doubt on Executive Pay
Nonprofits can protect themselves from scrutiny over executive pay by following a strong compensation-setting process. A robust procedure can support fair pay practices and provide organisations with a degree of legal and regulatory protection.
Graetz on the New IRS Regulations to Revoke Tax-Exempt Status
Michael Graetz has published a piece in Tax Notes criticising proposed IRS regulations that would revoke the tax-exempt status of private schools. The regulations, published as REG-119986-25, are described by Graetz as an assault on pluralistic democracy. The full article…
Section 54F Not Claimed in the Return? ITAT Says a Fresh Claim Can Still Be Considered
India's Income Tax Appellate Tribunal has ruled that a taxpayer who did not claim relief under Section 54F in their original return can still raise that claim at the appellate stage. The case arose where a taxpayer had disputed the…
Gujarat AAR Rules No GST Applicable on Amounts Recovered from Employees Towards Canteen Meals
The Gujarat Authority for Advance Ruling has determined that GST does not apply to amounts recovered from employees for canteen meals at Torrent Pharmaceuticals sites, including its Indrad plant, R&D facility and corporate office. The authority found that deductions from…
IRS Loses Bid For Tax Withholdings In Ch. 11 Camp Sales
A New Jersey bankruptcy judge has ruled that buyers of seven summer camps owned by Simad Holdings Ltd are not required to withhold taxes under rules governing the sale of US property by foreign owners, rejecting an objection from the…
7th Circ. Rejects Ex-Club Prez's Claim Of Fake Canceled Debt
The Seventh Circuit has upheld the dismissal of a former country club president's claim that the club filed a fraudulent information return reporting a cancelled debt. The court found he had not made a sufficient case for overturning precedent that…
Philippine Airlines Asks Tax Court To Cut $5.7M Off Tax Bill
Philippine Airlines has asked the US Tax Court to reduce its tax bill by more than $5.7 million of a $7.1 million assessment. The airline argues that the IRS cannot deny it a tax exemption on income from passengers and…
Why Importers Should Assess IEEPA Refund Claims Now
Importers seeking refunds of duties assessed under the International Economic Emergency Procedures Act are warned not to wait for guidance from US Customs and Border Protection or the courts, as limitation deadlines for the earliest claims are approaching and refunds…
Minn. Court Wrong To OK Childcare Tax Break, County Says
Minnesota's largest county has asked the state Supreme Court to reverse a tax court ruling that allowed a childcare centre a property tax break. The county argues the centre missed a statutory filing deadline and should therefore not be entitled…
Wilbur Ross, Steve Wynn Sue Over New York Pied-a-Terre Tax
Former US Commerce Secretary Wilbur Ross and casino tycoon Steve Wynn have filed a lawsuit challenging New York's pied-à-terre tax. They argue the tax is unconstitutional because it targets only people who live outside the city.
Can states tax past digital product sales? The Colorado Netflix case explained
When a state changes its tax rules for digital products, sellers need to know whether the change applies retrospectively or only to future sales. Colorado's case against Netflix illustrates why this distinction matters and how the answer is determined.
Justices Won't Hear Corporate Transparency Act Challenges
The US Supreme Court has declined to hear two legal challenges to the Corporate Transparency Act, a law intended to create a national beneficial ownership registry to help law enforcement agencies investigate shell companies. The Act had already been significantly…
Agra GSTAT Says Service Tax on Cancelled Pre-GST Flat Bookings Can’t Be Availed as ITC
India's Agra Bench of the Goods and Services Tax Appellate Tribunal has ruled that service tax paid on flat bookings made before the introduction of GST, which were later cancelled under the GST regime, cannot be reclaimed as Input Tax…
Tax Prep CEO Cops To Fraud After Feds Charge $25M IRS Con
The chief executive of a New York City tax preparation firm has pleaded guilty to defrauding the tax authority after federal prosecutors charged him and two associates with submitting fraudulent deductions worth $25 million, while telling clients that the tax…
Delhi HC Raises Concern Over No Time Limit for Duplicate PAN Cancellation
The Delhi High Court has raised concerns that the lack of a time limit for processing applications to cancel duplicate Permanent Account Numbers creates problems for taxpayers, particularly those filing income tax returns or accessing PAN-linked services. The case was…
Italian tax court refers post-Brexit fiscal rules on property to CJEU
An Italian tax court has referred post-Brexit fiscal rules on property to the Court of Justice of the European Union. The referral concerns whether effective tax cooperation can justify applying cadastral valuation rules to countries outside the EU and European…
ITAT Grants Relief to Senior Citizen Who Mistakenly Paid Rs. 9.91 Lakh Tax on Tax-Free Bond Interest
A senior citizen mistakenly paid tax on interest from tax-free bonds. The Income Tax Appellate Tribunal has since granted relief, directing the relevant tax authorities to issue a refund.
Delhi HC Sets Aside 153C Order, Finds Satisfaction Note Recorded Beyond Limitation Period
The Delhi High Court has set aside a tax assessment order under Section 153C against a company, ruling that the proceedings were time-barred. The court found that the satisfaction note had been recorded outside the permitted limitation period, rendering the…