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Author: Moritz Scherleitner Publisher: ISBN: 9789087226336 Category : Electronic books Languages : en Pages : 625
Book Description
Analysing legislative action against tax arbitrage with hybrid financial instruments from a multidisciplinary perspective, this book provides valuable insight into the effects of potential approaches.
Author: Moritz Scherleitner Publisher: ISBN: 9789087226336 Category : Electronic books Languages : en Pages : 625
Book Description
Analysing legislative action against tax arbitrage with hybrid financial instruments from a multidisciplinary perspective, this book provides valuable insight into the effects of potential approaches.
Author: Jakob Bundgaard Publisher: Kluwer Law International B.V. ISBN: 9041183183 Category : Law Languages : en Pages : 498
Book Description
Financial innovation allows companies and other entities that wish to raise capital to choose from a myriad of possible instruments that can be tailored to meet the specific business needs of the issuer and investor. However, such instruments put increasing pressure on a question that is fundamental to the tax and financial systems of a country – the distinction between debt and equity. Focusing on hybrid financial instruments (HFIs) – which lie somewhere along the debt-equity continuum, but where exactly depends on the terms of the instrument as well as on applicable laws – this book analyses their treatment under both domestic law and tax treaties. Key jurisdictions, including the EU, some of its Member States, and the United States, are covered. Advocating for a broader scope of application of HFIs as part of the financing of companies in Europe alongside traditional sources of debt and equity financing, the book addresses such issues and topics as the following: • problems associated with the debt-equity distinction in international tax law; • cross-border tax arbitrage and linking rules; • drivers behind the use and design of HFIs; • tax law impact of perpetual and super maturity debt instruments, profit participating loans, convertible bonds, mandatory convertible bonds, contingent convertibles, preference shares and warrant loans on HFIs; • financial accounting treatment; • administrative guidance; • influence of the TFEU on Member States’ approaches to classification of HFIs; • interpretation of the Parent-Subsidiary Directive by the European Court of Justice; • applicability of the OECD Model Tax Convention; and • implications of the OECD Base Erosion and Profit Shifting (BEPS) project. Throughout this book, the analysis draws upon preparatory works, case law, and legal theory in English, German, and the Scandinavian languages. In conclusion, the author considers tax policy issues, and identifies and outlines possible high-level solutions. Actual or potential users of HFIs will greatly appreciate the clarity and insight offered here into the capacity and tax implications of HFIs. The book not only examines whether existing legislation is sufficient to handle the issues raised by international HFIs, but also provides an in-depth analysis of the interaction between corporate financing and tax law in the light of today’s financial innovation. Corporate executives and their counsel will find it indispensable in the international taxation landscape that is currently coming into view, and academics and policymakers will hugely augment their understanding of a complex and constantly changing area of tax law.
Author: Francisco Alfredo Garcia Prats Publisher: ISBN: Category : Languages : en Pages : 32
Book Description
The article deals with the interesting issue of the tax treaty qualification problems arising in hybrid financial instruments and structures. The need to fit the great diversity of instruments and legal, economic and accounting trends attached to them into the closed range of treaty income categories forces to analyze the basic elements of the tax treaty definitions of those categories of income, their mutual relationship, the role of the Commentaries and the effects derived from integration between the tax treaty requirements and the tax regime and qualifications of the income arising from the hybrid financial instrument. Despite the limited effects associated to the qualification of income arising from the hybrid financial instruments, the article further analyzes the effects derived from the interaction of the legal and qualification regimes of the income in the 'source' and the 'residence' contracting States, to verify what type of interaction and consequences derived and, according to those consequences, what type of measures can be applied to prevent undesired tax treaty results. In particular, the issue of the legitimate use of tax arbitrage schemes is considered and also the counteracting measures foreseen to prevent this usage and also its compatibility with tax treaty requirements.
Author: Gaspar Lopes Dias V.S. Publisher: Kluwer Law International ISBN: 9789041158758 Category : Law Languages : en Pages : 0
Book Description
This book explores tax arbitrage opportunities resulting from financial engineering techniques with cross-border financial instruments such as hybrids, synthetics, and non-traditional financial instruments. Firstly the author clarifies the concept of three kinds of complex financial instruments, and thereafter he discusses the most adequate tax treatment of these instruments in cross-border situations. For this purpose he identifies economic substance as an objective benchmark for the taxation of financial instruments to achieve greater international tax neutrality, and examines the role of the expected return taxation theory. The book also contains a comparative analysis of relevant developments in a number of jurisdictions, including Australia, Belgium, Brazil, Luxembourg, Portugal, UK and USA.
Author: Martin Alexander Six Publisher: ISBN: Category : Languages : en Pages : 13
Book Description
The compartmentalisation of company finance into equity and debt does not truly capture the enormous diversity of financial instruments available. A wide variety of hybrid instruments incorporate elements of both equity and debt. From a fiscal point of view the classification of such hybrid instruments as equity or debt is crucial for two reasons. First of all, the issuer can treat interest on the latter as tax-deductible in most cases, and secondly, for the investor the classification determines whether the payments received from the respective instrument is treated as a dividend or as interest. One important question in this context is how hybrid instruments are treated in the tax treaty between the source state and the residence state. It is the aim of this paper, to show how the yield on hybrid financial instruments can or must be qualified as either dividend or interest in the double tax treaties, irrespective of the treatment in contracting states. (author's abstract).
Author: F.D. Martínez Laguna Publisher: ISBN: Category : Languages : en Pages :
Book Description
Attention has been paid to double non-taxation resulting from contractual hybrid financial instruments, which are instruments that share debt and equity features. This article focuses on a specific Institutional Hybrid Financial Instrument instead. Institutional Hybrid Financial Instruments are equity instruments that could equally lead to conflicts of qualification and double non-taxation considering the deductibility from a tax perspective according to a tax policy decision. The analysis deals with the application of the Spanish exemption method to Brazilian Juros sobre o Capital Próprio from a domestic law and tax treaty perspective. Moreover, the implementation of linking rules and its implications regarding hybrid financial instruments are also considered.
Author: Félix Daniel Martínez Laguna Publisher: Kluwer Law International B.V. ISBN: 9403510846 Category : Law Languages : en Pages : 685
Book Description
Hybrid Financial Instruments, Double Non-taxation and Linking Rules Félix Daniel Martínez Laguna Hybrid financial instruments (HFIs) are widespread ordinary financial instruments that combine debt and equity features in their terms and design and may lead to double non-taxation across borders. This important book provides a deeply informed and critical analysis and guide to the “linking rules” developed to combat double non-taxation stemming from HFIs within the framework of the Base Erosion and Profit Shifting project of the Organisation for Economic Co-operation and Development (OECD) and the anti-avoidance initiatives of the European Union (EU). These complex rules have now become essential in international taxation. The book deals incisively with crucial theoretical and practical issues as the following: Economic and legal reasons for financing business activity through debt instruments, equity instruments and/or HFIs. Qualification of financial instruments from different perspectives such as economics, corporate finance, corporate law, financial accounting law, regulatory law and tax law and their interrelation. The concept of double non-taxation as a mere outcome of parallel exercises of sovereignty by different states and the role it plays within the international debate. The concepts of tax planning, tax avoidance and the misleading concept of aggressive tax planning within a tax competition international scenario and their relation with HFIs. Comprehensive policy, legal and technical detail and explanation of the linking rules proposed by the OECD (i.e., BEPS Project Action 2) and the EU (e.g., Anti-Tax Avoidance Directive). The (in)compatibility of linking rules with existing tax treaty rules and EU primary law. The author refers throughout to relevant model convention provisions, EU case law and a vast number of references of official documentation and literature. With its detailed attention to the concept and legal nature of HFIs and double non-taxation, the critical and comprehensive analysis of the linking rules developed by the OECD and the EU, this provocative book allows to reconsider the legality of these linking rules and will quickly become a much-used problem-solving resource for policymakers, tax practitioners, tax authorities and tax academics. This book allows to rethink whether linking rules relate to a solution or create actual legal issues.
Author: OECD Publisher: OECD Publishing ISBN: 9264241132 Category : Languages : en Pages : 458
Book Description
Addressing base erosion and profit shifting (BEPS) is a key priority of governments. In 2013, OECD and G20 countries, working together on an equal footing, adopted a 15-point Action Plan to address BEPS. This publication is the final report for Action 2.
Author: Moritz Scherleitner
Author: Moritz Scherleitner
Author: Jakob Bundgaard
Author: Shay Nisan Menuchin
Author: Francisco Alfredo Garcia Prats
Author: Gaspar Lopes Dias V.S.
Author: 
Author: Martin Alexander Six
Author: F.D. Martínez Laguna
Author: Félix Daniel Martínez Laguna
Author: OECD