Download or read book Double non taxation and the use of hybrid entities written by Leopoldo Parada and published by Kluwer Law International B.V.. This book was released on 2023-12-11 with total page 531 pages. Available in PDF, EPUB and Kindle. Book excerpt: The topics of double non-taxation and hybrid entities have acquired particular importance in a context where transformations in the tax world have led to international commitments materialised in the OECD Base Erosion and Profit Shifting (BEPS) project. In what is the first systematic in-depth analysis of the OECD BEPS Action Plan 2 and hybrid entities, this timely book provides a critical review of the approach adopted by the OECD and proposes a deeply informed alternative method to deal with the problem of hybrid entity mismatches. The author analyses the interaction between the double non-taxation outcome and the use of hybrid entities in an approach not strictly linked to any specific tax jurisdiction. To this end, the analysis includes case studies and examples from a range of jurisdictions emphasising the international tax context, also including the application of tax treaties. Among the seminal matters covered in this edition are the following: foundations of the concepts of double non-taxation and hybrid entities; extensive analysis based on the rules of characterisation of foreign entities for tax purposes in the United States, Spain, Denmark, and Germany, as well as on the Poland/United States and Canada/United States tax treaties; in-depth analysis of the implications of Article 1(2) OECD Model Tax Convention and Article 3(1) Multilateral Instrument (MLI), especially considering the position of developing (source) countries; detailed analysis of the OECD BEPS Action 2 and its recommendations (linking rules), including its implementation in the EU Anti-Tax Avoidance Directive (ATAD); and elaborated alternative method to deal with hybrid entity mismatches (reactive coordination rule), which is informed by the tax policy aims of simplicity, coherence, and administrability. Detailed comparisons between the author’s proposal and other existing rules elucidate common points and deviations. If merely for its unparalleled clarification of the issues, this book will prove of immeasurable value to practitioners, tax authorities, policymakers and academics concerned with international tax law. Beyond that, as an authoritative guide that promises to reorient the discussion to what really matters in the debate regarding hybrid entity mismatches, this analysis elaborates solutions applicable to a generality of cases worldwide and, therefore, hugely promotes the urgent quest for alternative views.
Download or read book Double Non taxation and the Use of Hybrid Entities written by Leopoldo Parada and published by Kluwer Law International B.V.. This book was released on 2018-04-18 with total page 411 pages. Available in PDF, EPUB and Kindle. Book excerpt: The topics of double non-taxation and hybrid entities have acquired a particular importance in a context where transformations within the tax world seem to be leading to an international commitment most materially manifested in the OECD Base Erosion and Profit Shifting (BEPS) project. In what is the first systematic in-depth critique of the BEPS Action Plan 2 with regard to hybrid entities, this timely book provides a critical review of the OECD’s approach and proposes a deeply informed alternative method based on the tax policy aims of simplicity, coherence and ease of administration. The author analyses the interaction between the double non-taxation outcome and the use of hybrid entities in an approach not strictly linked to any specific tax jurisdiction. To this end, the analysis includes case studies and examples from a range of jurisdictions emphasizing the international tax context, including the application of tax treaties. Among the seminal matters covered are the following: – foundations of the concepts of double non-taxation and hybrid entities, absent of the specific limitations of domestic tax legislation; – extensive analysis based on the rules of characterization of foreign entities for tax purposes in the United States, Spain, Denmark and Germany, as well as on the Poland/United States and Canada/United States tax treaties; – detailed analysis on the implications of Article 1(2) OECD Model Tax Convention and Article 3(1) Multilateral Instrument, especially having in mind the position of developing (source) countries; and – EU tax law as part of the international context, including an extensive analysis on the EU Anti-Tax Avoidance Directive (ATAD) I and ATAD II. Detailed comparisons between the author’s proposal and other existing rules elucidate common points and deviations. If merely for its unparalleled clarification of the issues, this book will prove of immeasurable value to practitioners, tax authorities, policymakers and academics concerned with international tax law. Beyond that, as an authoritative guide that promises to reorient the discussion to what really matters in the debate regarding double non-taxation and hybrid entities, this analysis elaborates solutions applicable to a generality of cases worldwide, and thus hugely promotes the urgent quest for alternative solutions.
Download or read book Hybrid Entities in Tax Treaty Law written by Sriram Govind and published by Linde Verlag GmbH. This book was released on 2020-09-03 with total page 696 pages. Available in PDF, EPUB and Kindle. Book excerpt: Tax treaty law and EU tax law in connection with hybrid entities Hybrid entities have traditionally been used as an avenue for international tax planning, and extending benefits under tax treaties to such entities has been a source of controversy for many years now. Although the OECD Partnership Report provided solid policy footing on this issue, there was still no common legal basis that countries could rely on for such positions. The increasing focus of countries towards the curbing of tax avoidance and abuse involving hybrid mismatch arrangements culminated in a specific action plan in the BEPS Project being dedicated to the design of domestic rules and the development of treaty provisions that would neutralize the tax effects of such arrangements. This volume provides an in-depth analysis of various aspects of this topic. It is divided into two parts – the first dealing exclusively with tax treaty issues arising in connection with hybrid entities and the second dealing with EU tax law issues surrounding hybrid entities. The former part comprises chapters analysing how tax treaties have historically dealt with this issue with a focus on domestic court jurisprudence, the positions in the OECD and the UN Model Conventions, the developments that have come about owing to the BEPS Project, and the impact of several existing measures, regimes, and vehicles on these tax treaty provisions. The latter part comprises chapters on how hybrid entities are dealt with under primary EU law, under various secondary law directives including the newly enacted Anti-Tax Avoidance Directives, and an analysis of policy solutions offered in this direction.
Download or read book Hybrid Entity Double Taxation written by Craig Elliffe and published by . This book was released on 2012 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Hybrid entities give rise to international tax problems, and it must be acknowledged, opportunities. Why is this so? This is because, at the heart of the phenomenon, different countries tax systems treat hybrid entities in fundamentally different ways allocating income to different parties. The tax consequences of this divergence of approach by countries can lead to complex and unintended outcomes. By reference to the OECD Report on the taxation of Partnerships, this article looks at whether the treatment of trans-Tasman limited partnerships under the Australian and New Zealand Convention results in double taxation or double non-taxation. The approach taken is to use a case study to illustrate how hybrid entity double taxation arises. The result is that hybrid entity double taxation is, mostly, resolved through the operation of the Convention.
Download or read book Hybrid Entities and DTA Relief India and New Zealand Approach written by H.E. Sheppard and published by . This book was released on 2019 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This article investigates whether the application of the New Zealand-India tax treaty to each country's most recent hybrid entity - a limited partnership (LP) in New Zealand and a limited liability partnership (LLP) in India - results in double taxation or double non-taxation. The article shows that, as evidenced by OECD Commentary, the existing treaty provisions ordinarily resolve the hybrid entity double taxation or double non-taxation. The article indicates that the treatment of foreign LPs / LLPs is complex for both taxpayers and tax administrators. A foreign LP / LLP could qualify as either a company, a firm, or even as an association of persons under domestic law. Further, current foreign tax credit rules do not provide definitive guidance in relation to taxation of a foreign LLP established in India with Indian resident partners. The same applies for an Indian LLP established in New Zealand with New Zealand resident partners. The article concludes that to encourage foreign investment in LPs / LLPs, countries should adopt domestic legislation designed to neutralize a mismatch. Undoubtedly, the OECD multilateral instrument (Multilateral Convention to Implement Tax Treaty Related Measures to Prevent BEPS) (MLI), conceptualized as part of the BEPS project, gives effect to the recommendations in Action 2 (Neutralizing the Effects of Hybrid Mismatch Arrangements), which if adopted, will substantially resolve this issue.
Download or read book Hybrid Entity Mismatches and the International Trend of Matching Tax Outcomes a Critical Approach written by L. Parada and published by . This book was released on 2018 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: The international tax debate as regards hybrid entities has certainly changed after the OECD BEPS Project. Since then, the trend has been focused exclusively on matching transactions involving hybrids and reverse hybrid entities and double non-taxation, however without questioning whether these two elements are necessarily interconnected or whether they should serve each other in the design of domestic anti-hybrid provisions. This is particularly evident as regards the notion of hybrid (entity) mismatch arrangements the design of which is based on the assumption that income should be taxed somewhere - no matter where - and as regards the complex set of domestic solutions proposed (linking rules) the true efficacy of which is nevertheless still unknown. In this vein, this article adopts a critical approach both as regards the diagnosis of the problems and as regards the solutions proposed. As to the diagnosis, the author argues that the artificial attempt to match transactions involving hybrid entities and double non-taxation not only disregards the fundamental issue as regards hybrid entity mismatches (i.e. the disparate tax characterization of the same entity by two different states), but also carries with it the risk of creating presumptions of abusive practices in all those cases in which a hybrid entity structure is simply not taxed at all. As to the remedies, the author argues against the complexity, excessive reliance on foreign laws and potential economic double taxation issues that the implementation of linking rules might cause from a tax policy perspective. From a practical perspective, the author questions the proper interaction between linking rules and other anti-base erosion provisions, such as interest limitations and CFC rules. This article ultimately concludes that a re-orientation in the international debate regarding hybrids and reverse hybrid entities is crucial in order to open the door for more fundamental - and perhaps also more coordinated - solutions.
Download or read book International Tax Policy and Double Tax Treaties written by Kevin Holmes and published by IBFD. This book was released on 2007 with total page 433 pages. Available in PDF, EPUB and Kindle. Book excerpt: Explains the concepts that underlie international tax law and double tax treaties and provides an insight into how international tax policy, law and practice operate to ultimately impose tax on international business and investment.
Download or read book EC Law Aspects of Hybrid Entities written by Gijsbert Karel Fibbe and published by IBFD. This book was released on 2009 with total page 465 pages. Available in PDF, EPUB and Kindle. Book excerpt: This study discusses the impact of the EC Treaty on the recognition of entities in the internal market. The EC Treaty envisages the internal market as an area without internal frontiers in which the free movement of goods, persons, services and capital is ensured in accordance with the provisions of the EC Treaty. One of the key questions discussed in this study is how this rationale reflects the relation between tax laws of Member States and, specifically, the relation between the application of autonomous classification methods by Member States and the free allocation of economic resources in the internal market. This study also contains an examination of how the different approaches to hybrid entities in tax treaties interfere with EC law. This part of the study contains an analysis of how the interrelation between domestic (tax) laws and the approach to classification conflicts under existing bilateral tax treaties relates to EC law.
Download or read book Neutralising the Effects of Hybrid Mismatch Arrangements written by Oecd and published by OCDE. This book was released on 2014-09-16 with total page 99 pages. Available in PDF, EPUB and Kindle. Book excerpt: This report sets out recommendations for domestic rules to neutralise the effect of hybrid mismatch arrangements and includes changes to the OECD Model Tax Convention to address such arrangements. Once translated into domestic law, the recommendations in Part 1 of the report will neutralise the effect of cross-border hybrid mismatch arrangements that produce multiple deductions for a single expense or a deduction in one jurisdiction with no corresponding taxation in the other jurisdiction. Part 1 of the report will be supplemented by a commentary, which will explain the recommended rules and illustrate their application with practical examples. Part 2 of the report sets out proposed changes to the Model Convention that will ensure the benefits of tax treaties are only granted to hybrid entities (including dual resident entities) in appropriate cases. Part 2 also considers the interaction between the OECD Model Convention and the domestic law recommendations in Part 1.
Download or read book OECD G20 Base Erosion and Profit Shifting Project Neutralising the Effects of Hybrid Mismatch Arrangements Action 2 2015 Final Report written by OECD and published by OECD Publishing. This book was released on 2015-10-05 with total page 458 pages. Available in PDF, EPUB and Kindle. Book excerpt: 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.
Download or read book Addressing hybrid mismatch arrangements written by Policy and Stratgey, Inland Revenue, New Zealand and published by Policy and Strategy, Inland Revenue, New Zealand. This book was released on 2016-09-06 with total page 87 pages. Available in PDF, EPUB and Kindle. Book excerpt: Hybrid mistmatch arrangements are one of the main base erosion and profit shifting (BEPS) strategies used by some large international companies to pay little or no tax anywhere in the world. The OECD developed recommendations for anti-hybrid measures in its 15 point Base Erosion and Profit Shifting (BEPS) Action Plan. This Government discussion document seeks comments on how the OECD recommendations could be implemented in New Zealand. Part I of the document describes the problem of hybrid mismatch arrangements, the case for responding to the problem, and a summary of the OECD recommendations. Part II of the document explains the OECD recommendations in greater depth and discusses how they could be incorporated into New Zealand law.
Download or read book The Effect of Treaties on Foreign Direct Investment written by Karl P Sauvant and published by Oxford University Press. This book was released on 2009-03-27 with total page 795 pages. Available in PDF, EPUB and Kindle. Book excerpt: Over the past twenty years, foreign direct investments have spurred widespread liberalization of the foreign direct investment (FDI) regulatory framework. By opening up to foreign investors and encouraging FDI, which could result in increased capital and market access, many countries have improved the operational conditions for foreign affiliates and strengthened standards of treatment and protection. By assuring investors that their investment will be legally protected with closed bilateral investment treaties (BITs) and double taxation treaties (DTTs), this in turn creates greater interest in FDI.
Download or read book Hybrid Entities in Tax Treaty Law written by Jean-Philippe West and published by . This book was released on 2020 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Hybrid Entities and Conflicts of Allocation of Income Within Tax Treaties is New Article 1 2 of the OECD Model article 3 1 of the MLI the Best Solution Available written by L. Parada and published by . This book was released on 2018 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: The benefits of a tax treaty are generally granted to persons who are residents of one of the Contracting States. The determination of such tax residence status is, however, not always an easy task and is particularly problematic in relation to entities whose tax characterisation differs from one Contracting State to another thereby giving rise to conflicts of allocation of income. As a remedy for this, the OECD has introduced a new Article 1(2) in to the OECD Model Tax Convention 2017 (the OECD Model), the text of which is also replicated in Article 3(1) of the Multilateral Instrument (MLI). This provision, which reproduces the principles already settled within the 1999 OECD Partnership Report and which uses a wording which mirrors Article 1(6) of the US Model, is presented as the most effective way of dealing with the use of hybrid entities within the context of tax treaties. This is, however, only partially true. As is argued in this article, Article 1(2) of the OECD Model - and by extension Article 3(1) of the MLI - is not designed to interplay properly with other attribution rules within the relevant tax treaties, especially with regard to the beneficial ownership requirement of Articles 10, 11 and 12 of the OECD Model. Accordingly, Article 1(2) of the OECD Model maintains an unjustified preference for the interests of the residence state over those of the source state thereby generating concerns especially for developing (source) countries. As stressed in this article, a better solution might perhaps be found outside the treaty context, specifically through the use of a domestic rule that co-ordinates the characterisation of entities for tax purposes. This solution would not only eliminate any potential hybrid entity mismatch before the application of a treaty, but would also indirectly provide more consistent tax treaty outcomes without the need to replace or modify the current wording of Article 1(2) of the OECD Model.
Download or read book Hybrid Mismatch Arrangements in Internatinal Tax Law written by Anaïs Bracqbien and published by . This book was released on 2015 with total page 130 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Hybrid Financial Instruments Double Non Taxation and Linking Rules written by Félix Daniel Martínez Laguna and published by . This book was released on 2019-06-12 with total page 384 pages. Available in PDF, EPUB and Kindle. Book excerpt: Double non-taxation stemming from hybrid financial instruments and the solutions provided by the OECD and the European Union for tackling such an outcome are the target of this publication. It focuses on the economic and legal features of debt and equity instruments as well as hybrid financial instruments from an interdisciplinary perspective where economics, corporate law, financial accounting law, regulatory law and tax law are present. The different qualification of hybrid financial instruments within and without jurisdictions may lead to double non-taxation across borders, which is one of the main issues of concern to the international tax community.
Download or read book Interpretation and Application of Tax Treaties in North America written by Juan Angel Becerra and published by IBFD. This book was released on 2007 with total page 299 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book presents an overview of the materials, court cases and mutual agreement procedures implemented in Canada, USA and Mexcio. In addition, it provides a background to the development of tax treaty law and the information necessary to interpret a tax treaty based upon the principles codified in the Vienna Convention of the Law of Treaties. Contents: the background of the early model tax conventions; the development of tax treaty law; the specific materials from Canada, the United States and Mexico; proposal for a trilateral tax treaty for North America to provide full relief from the harmful barriers against free movement of capital and services.
