International briefing for September 2012

There have been further important developments on FATCA this month with the intergovernmental agreement between the US and the UK being signed, and HMRC releasing a consultation document discussing the potential implementing legislation for this agreement. An expert committee in India has published recommendations on their GAAR proposals including, most notably, a suggestion that implementation be delayed for three years. The CJEU has published two important decisions this month: the Philips Electronics case which could have significant implications for UK group relief; and the Commission v Portugal case which confirms the view that elements of the UK’s exit tax rules are unlawful.