The Irish Government’s battle to retain a low corporation tax rate was given a boost last week, after the Dutch finance minister backed Ireland’s position.  The comments will help bolster Ireland’s fight against German and French pressure to increase its 12.5% corporation tax rate in exchange for better terms on the €85bn bailout loans from the EU and IMF.

During an official visit by President Mary McAleese to the Netherlands, Dutch finance minister Jan Kees De Jager said that countries should be able to retain sovereignty on tax matters.  Irish Independent 3 May 2011

In the case HMRC v Parissis, the First-tier Tax Tribunal held that a tax inspector can require an individual to hand over a document that he does not possess. The taxpayer’s only defence is to prove that the third party who holds the document has refused a request to supply it.

HMRC has published new guidance on mourning costs that can be deducted against IHT

The Upper Tax Tribunal has struck out late filing penalties imposed by HMRC upon a woman who became mentally incapable and homeless after being seriously injured by armed robbers. Although the robbers used her bank cards to steal all her savings, leaving her penniless for two years, an earlier tribunal decision nevertheless ordered her to pay the penalties.

From 6 April 2011 the DOTAS (disclosure of tax avoidance schemes) regime applies to inheritance tax planning, including lifetime transfers to trusts.