Double Non-taxation and The Use of Hybrid Entities, Second Edition | 2023*

Double Non-taxation and The Use of Hybrid Entities, Second Edition | 2023*

The second edition of Double Non-taxation and the Use of Hybrid Entities offers the first comprehensive, detailed examination of the OECD Base Erosion and Profit Shifting (BEPS) Action Plan 2 and the issue of hybrid entities. This timely book critically analyzes the OECD's approach to addressing hybrid entity mismatches and suggests a well-informed alternative solution. The topic of double non-taxation and hybrid entities has become more significant as changes in the global tax landscape have led to international commitments reflected in the OECD BEPS framework.

What’s Inside This Book:

The author explores the relationship between double non-taxation and the use of hybrid entities, taking an approach that is not tied to any specific tax jurisdiction. The analysis incorporates case studies and examples from a variety of jurisdictions, focusing on the international tax framework and the application of tax treaties.

This edition covers the following key topics:

• The foundational concepts of double non-taxation and hybrid entities;

• A thorough examination of the foreign entity characterization rules for tax purposes in the United States, Spain, Denmark, and Germany, as well as the Poland/United States and Canada/United States tax treaties;

• An in-depth review of the implications of Article 1(2) of the OECD Model Tax Convention and Article 3(1) of the Multilateral Instrument (MLI), particularly in relation to the interests of developing (source) countries;

• A detailed analysis of OECD BEPS Action 2 and its recommendations (linking rules), including how these have been implemented in the EU Anti-Tax Avoidance Directive (ATAD);

• A proposed alternative method for addressing hybrid entity mismatches, known as the reactive coordination rule, which aligns with the tax policy goals of simplicity, coherence, and administrative feasibility.

Detailed comparisons between the author’s proposal and other existing rules highlight both commonalities and differences, providing deeper insights into the topic.

How This Book Will Help:

This book, with its unparalleled clarity on the issues at hand, will be invaluable to practitioners, tax authorities, policymakers, and academics working in the field of international tax law. As an authoritative guide, it offers a fresh perspective on the debate surrounding hybrid entity mismatches, providing practical solutions that can be applied to a wide range of cases worldwide. Consequently, it significantly contributes to the ongoing search for alternative approaches in this critical area of tax policy.

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