Double Non-taxation and the Use of Hybrid Entities: An Alternative Approach in the New Era of BEPS

About this book:

Double Non-taxation and the Use of Hybrid Entities provides a critical review of the Economic Co-operation and Development’s (OECD’s) approach in Base Erosion and Profit Shifting (BEPS) – Action 2 and proposes a deeply informed alternate method based on the tax policy aims of simplicity, coherence and ease of administration. The topics of double non-taxation and hybrid entities have acquired 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 BEPS project. This book provides a consistent option to address the issues of hybrid entity mismatches, which may be used as a point of comparison with regard to the current OECD BEPS proposals and as a viable alternative for tax policymakers.

What’s in this book:

The author analyzes 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 some examples of solutions taken from the tax treaties of Poland/United States and Canada/United States;
detailed analysis of 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
European Union (EU) tax law as part of the international context, including an extensive analysis on the EU Anti-Tax Avoidance Directives, ATAD I and ATAD II.