New OECD Report on BEPS Action 2 Branch Mismatch ArrangementsBy Robert Robillard - 14 August 2017
The OECD recently released an updated version of BEPS Action 2 Report titled “Neutralising the tax effects of branch mismatch arrangements”
“This report set out recommendations for domestic rules that put an end to the use of hybrid entities to generate multiple deductions for a single expense or deductions without corresponding taxation of the same payment. While the 2015 Report addresses mismatches that are a result of differences in the tax treatment or characterisation of hybrid entities, it did not directly consider similar issues that can arise through the use of branch structures. These branch mismatches occur where two jurisdictions take a different view as to the existence of, or the allocation of income or expenditure between, the branch in head office of the same taxpayer.”
The report has been added to the complete library on BEPS and Transfer Pricing which is available here.
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