In 2017 the UK implemented a detailed set of ‘hybrid mismatch rules’ to combat cross-border tax advantages arising from ‘hybridity’; for example the differing tax treatments of entities transactions or instruments. The hybrid mismatch rules were based closely on the recommendations of the OECD BEPS Action 2 project. The EU’s Anti-Tax Avoidance Directive II (‘ATAD II’) was then laid later the same year amending ATAD 1 and requiring (not simply recommending) that EU member states introduce comprehensive hybrid mismatch rules under a prescriptive set of principles.
As the requirements of ATAD 2 are also based substantively on BEPS Action 2 principles the vast majority of the detailed requirements are already satisfied by the UK’s existing rules. However there are some necessary ‘minor amendments’ to satisfy specific aspects of ATAD II. These feature in FA 2019 discussed below.
Chapter 8 change
Chapter 8 contains provisions for dealing...
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In 2017 the UK implemented a detailed set of ‘hybrid mismatch rules’ to combat cross-border tax advantages arising from ‘hybridity’; for example the differing tax treatments of entities transactions or instruments. The hybrid mismatch rules were based closely on the recommendations of the OECD BEPS Action 2 project. The EU’s Anti-Tax Avoidance Directive II (‘ATAD II’) was then laid later the same year amending ATAD 1 and requiring (not simply recommending) that EU member states introduce comprehensive hybrid mismatch rules under a prescriptive set of principles.
As the requirements of ATAD 2 are also based substantively on BEPS Action 2 principles the vast majority of the detailed requirements are already satisfied by the UK’s existing rules. However there are some necessary ‘minor amendments’ to satisfy specific aspects of ATAD II. These feature in FA 2019 discussed below.
Chapter 8 change
Chapter 8 contains provisions for dealing...
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If you do not subscribe but are a registered user, please enter your details in the following boxes:
