Hybrid Mismatch Rules: Countries with low tax rates are the winners

Scheffler W, Kohl M (2018)

Publication Type: Journal article

Publication year: 2018

Journal

Betriebswirtschaftliche Forschung und Praxis Verlag Neue Wirtschaftsbriefe (NWB)

Book Volume: 70

Journal Issue: 6

Abstract

The Anti-Tax-Avoidance Directive (ATAD) has introduced complex rules against hybrid mismatch arrangements for the EU. Which of the rules apply will depend on the type of hybrid mismatch arrangement as well as the legal characterization of an entity. As the ATAD does not neutralise the differences between the taxation of equity capital and debt capital, there is still room for tax planning. By adjusting the (intracompany) external financing, the additional tax burden caused by ATAD can be limited to the tax rate applicable to the lowest-taxed entity. With regard to the objective of the BEPS initiative, it is worth mentioning that low-tax countries benefit most from the anti-abuse measures for hybrid mismatch arrangements.

Authors with CRIS profile

Wolfram Scheffler Lehrstuhl für Betriebswirtschaftliche Steuerlehre Manuela Kohl Lehrstuhl für Betriebswirtschaftliche Steuerlehre

How to cite

APA:

Scheffler, W., & Kohl, M. (2018). Hybrid Mismatch Rules: Countries with low tax rates are the winners. Betriebswirtschaftliche Forschung und Praxis, 70(6).

MLA:

Scheffler, Wolfram, and Manuela Kohl. "Hybrid Mismatch Rules: Countries with low tax rates are the winners." Betriebswirtschaftliche Forschung und Praxis 70.6 (2018).

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