A new
report HYBRIDMismatnts that exploit national differences in the tax
treatment of instruments, entities or transfers to deduct the same expense in
several different countries, to make income “disappear” between countries or to
artificially generate several tax credits for the same foreign tax.The report
concludes that these arrangements generate significant policy issues in terms of
tax revenue, competition, economic efficiency, fairness and transparency. It
notes that concerns about distortions caused by double taxation also apply to
double non-taxation.The OECD is making all efforts to ensure that there are no
tax loopholes between tax systems ch Arrangements: Tax Policy and Compliance Issues, released by the
OECD describes arrangemethat would allow some taxpayers to gain an
unfair competitive advantage over others
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