Double non-taxation and the use of hybrid entities

Double Non-taxation and the Use of Hybrid Entities, currently in its second edition, is the first systematic in-depth analysis of the OECD Base Erosion and Profit Shifting (BEPS) Action Plan 2 and hybrid entities, a timely book providing a critical review of the approach adopted by the OECD and proposing a deeply informed alternative method to deal with the problem of hybrid entity mismatches. Double non-taxation and hybrid entities have gained increasing importance in a context where transformations in the tax world have led to international commitments materialised in the OECD BEPS.

What’s in this book:

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 various jurisdictions, emphasising the international tax context and the application of tax treaties.

This edition covers the following seminal matters:

• 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 shed light on common points and deviations.

How this will help you:

Due to its nonpareil clarification of the issues, this book will prove to be of immeasurable value to practitioners, tax authorities, policymakers and academics concerned with international tax law. In addition, as an authoritative guide that promises to reorient the discussion to what really matters in the debate regarding hybrid entity mismatches, this analysis furnishes solutions applicable to a generality of cases globally and, therefore, hugely promotes the urgent quest for alternative views.

List of Figures

List of Abbreviations

Preface to the Second Edition

Acknowledgements

Introduction

PART I

Double Non-taxation: Delimiting the Boundaries of a Stigmatised Concept

CHAPTER 1

Double Non-taxation: A Conceptual Analysis

CHAPTER 2

Double Non-taxation and Bilateral Tax Treaties

PART II

Hybrid Entities: A Domestic Decision with International Consequences

CHAPTER 3

The Hybrid Entities’ Conundrum: A (Simple) Tax Characterisation Issue

CHAPTER 4

Hybrid Entities and the Entitlement to Tax Treaty Benefits

PART III

Double Non-taxation and Hybrid Entities: The New Trend of Matching Tax Outcomes

CHAPTER 5

Hybrid Mismatch Arrangements and Linking Rules: Creating Artificial (Mis)Matches

CHAPTER 6

Hybrid Entities Without Double Non-taxation: An Alternative Approach

CHAPTER 7

Summary and Conclusions

List of References

Index