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Bombay's high court has told the Indian tax authorities to decide whether it has the power to investigate a transaction involving a UK-based brewer.

VAT; Common system of value added tax; Determination of the place of supply; Exemptions; Concept of insurance and reinsurance transactions; Transfer of a number of reinsurance contracts, for consideration, to a taxable person established in a third country.

Israel's VAT rate will rise by one percentage point in July this year, but only for 18 months.

A number of recent studies show Ireland as an attractive location for business with a tax regime that ranks very competitively against other economies.

Paul Chambers Samantha Nonnenkamp A circular has recently been issued by the Luxembourg tax authorities to clarify the conditions necessary for applying the 80% corporate income tax exemption on revenue from intellectual property. This regime has been in place since 2008 and applies not only to current income derived from certain IP but also to capital gains realised on the disposal of such IP rights.

Nicolas Jacquot In a move designed to shelter businesses from the effects of the economic downturn, President Nicolas Sarkozy announced that the controversial French business tax (taxe professionnelle) will finally be abolished in 2010. But another tax framework will have to be designed to offset the revenue loss.

Thomas Pippos While March saw the public release of the government's tax policy work programme by the minister of revenue, preceding this was the less public release of a document headed medium term tax policy challenges and opportunities, by the New Zealand Treasury in February.

Rajendra Nayak Ganesh Pai The supreme court in the case of Eli Lilly (2009-TIOL-45-SC-IT), recently examined certain issues relating to applicability of withholding tax provisions under the Indian tax law (ITL) to overseas salary payments. Eli Lilly, Netherlands seconded expatriate employees to be employed with Eli Lilly India, its joint venture in India. These employees received home salary outside India in foreign currency. Taxes were withheld by Eli Lilly India on the India component of the salary paid by Eli Lilly India. However, no taxes were withheld on the salary paid by Eli Lilly Netherlands in the home country. The salary recipients (the expatriates) discharged the India tax obligation in respect of home country receipts by way of advance tax/self assessment tax. Total remuneration received by the expatriates was on account of services rendered in India. The main issue before the supreme court was whether withholding tax provisions of the ITL are applicable to payments in the nature of salary which are paid outside India by a foreign company to expatriates who are rendering services in India.

Sarah Davidson Ladly Chris Van Loan On February 26 2009, the Federal Court of Appeal upheld the decision of the Tax Court of Canada in the case of Prévost Car Inc v The Queen. The case concerned whether a Netherlands holding company (BV) was the beneficial owner of dividends paid by its Canadian subsidiary for purposes of the Canada-Netherlands income tax convention.

Christoph Besch Björn Viebrock Jens Hagemann The Bundesrat finance committee has recommended relaxation of two highly controversial tax provisions, the interest limitation and the loss carry-forward curtailment on a significant change of shareholders, in order to support German businesses threatened during the financial downturn.