Hybrid mismatch rules in Luxembourg 2020 - Oliver R. Hoor - Legitech - broché - Etude

Droit luxembourgeoisHybrid mismatches are the consequence of differences in the tax treatment of an entity, a financial instrument or a permanent establishment under the laws of two or more jurisdictions that may give rise to double taxation or double non-taxation.Hybrid mismatches that result in double non-taxation have been high on the agenda of the Organisation for Economic Coordination and Development ("OECD") in the context of the initiative against Base Erosion and Profit Shifting ("BEPS"). Action 2 of the BEPS Project aimed at developing recommendations regarding rules to be implemented in domestic tax law and tax treaties to tackle situations of double non-taxation. On 29 May 2017, the Council of the European Union adopted Anti-Tax Avoidance Directive 2 ("ATAD 2") that required EU Member States to implement as from 2020 all-encompassing hybrid mismatch rules that virtually cover any type of hybrid mismatch situation that is theoretically possible.The hybrid mismatch rules are c