(December 3, 2014)

Next to the webpage we referred to in our Article of earlier today, we found an other webpage on the website of the UK Government that is dedicated to the Autumn Statement 2014. This webpage can be found here. The page contains a lot of information. Under the header “Autumn Statement: documents” one can amongst others find other documents that were published alongside the Autumn Statement. One of these documents is a consultation document titled: “ Tackling aggressive tax planning: implementing the agreed G20-OECD approach for addressing hybrid mismatch arrangements”. Via this consultation the UK Government is seeking views on the UK plans for implementing the G20-OECD agreed rules for neutralising hybrid mismatch arrangements.

The Summary as provided by the consultation document itself reads as follows:

“Subject of the consultation

Proposals for rules to neutralise the effect of hybrid mismatch arrangements in accordance with recommendations of Action 2 of the G20-OECD BEPS project. The aim is to tackle aggressive tax planning where, within a multinational group, either one party gets a tax deduction for a payment while the other party does not have a taxable receipt, or there is more than one tax deduction for the same expense. Introduction of the proposed rules will largely eliminate any tax advantage arising from the use of hybrid entities and instruments and encourage businesses to adopt less complicated and more transparent cross-border investment structures.

Scope of the consultation

This consultation seeks comments to inform the UK’s contribution to the ongoing OECD work on a commentary to the G20-OECD report on Action 2, and on issues relating to implementation of the recommendations contained in that report which will guide development of legislation in the UK.

Who should read this

We would like to hear from businesses, individuals, tax advisers, professional bodies, civil society organisations and other interested parties.

Duration

This consultation will run for 10 weeks from 3 December 2014 until 11 February 2015.

Lead officials

Yasmin Ali, HM Revenue and Customs and David Howell, HM Treasury

How to respond or enquire about this consultation  

Additional ways to be involved

HMRC and HMT will consider meeting interested parties to discuss the issues raised during this consultation. Please use the contact details above if you are interested in a meeting.

After the consultation

The responses will inform the UK’s involvement in the OECD’s ongoing work to finalise the recommendations and to develop a commentary to the report by September 2015. Responses will be taken into account in developing the draft legislation. A summary of responses will be published in summer 2015.There will be further consultation on proposed draft legislation prior to its introduction in a future finance bill.”

Topics discussed in the consultation document are amongst others: 

• Proposals for hybrid mismatch arrangements rules;
• Proposals for dual resident company rules;
• Proposals for treaty provisions;
• Hybrid regulatory capital;
• Commencement and transitional provisions;
• Administrative aspects;

To be directly forwarded to the consultation document as published on the website of the UK Government, click here. The document will open in a new window.

Published in cooperation with Satwaki Chanda of taxnotes.co.uk

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