The UK hybrid mismatch provisions (‘the provisions’) have been effective since 1 January 2017. Each Chapter in TIOPA 2010 Part 6A provides a series of prescriptive requirements which counteract specific mismatch arrangements set out in the OECD BEPS Action 2 Report including the supplementary report on permanent establishments (PEs). Notwithstanding the broad description of the underlying policy objectives in the Action 2 Report and its associated examples the UK provisions are regarded by HMRC and most practitioners as being mechanical in nature notably without a purpose-based test commonly seen in UK anti-avoidance legislation and accordingly many taxpayers and advisers have seen that the provisions can give surprising results in normal commercial circumstances.
Each Finance Act between 2017 and 2022 included changes to...
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The UK hybrid mismatch provisions (‘the provisions’) have been effective since 1 January 2017. Each Chapter in TIOPA 2010 Part 6A provides a series of prescriptive requirements which counteract specific mismatch arrangements set out in the OECD BEPS Action 2 Report including the supplementary report on permanent establishments (PEs). Notwithstanding the broad description of the underlying policy objectives in the Action 2 Report and its associated examples the UK provisions are regarded by HMRC and most practitioners as being mechanical in nature notably without a purpose-based test commonly seen in UK anti-avoidance legislation and accordingly many taxpayers and advisers have seen that the provisions can give surprising results in normal commercial circumstances.
Each Finance Act between 2017 and 2022 included changes to...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
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