On 26 March 2008, the parliament adopted the amendments to the Income Tax Law (ITL), which should enter into force on 1 January 2009. The most important changes concerned the potential incompatibility of the tax system with EC law. However, in August 2008, the prime minister and the leading coalition party proposed certain measures aimed at eliminating the budget deficit, which are summarized below. Income tax (a) Distribution tax system. The government would likely propose to postpone or abolish the tax reform which was designed to ensure the compliance of the income tax system with the Parent-Subsidiary Directive 90/435/EEC.. Apart...