Boulogne, G. F.
Debt push-downs in times of BEPS Action 4 and the ATAD / G. F. Boulogne .-- , 2019
Resumen.
Debt push-downs are a common feature of mergers and acquisitions transactions. This article addresses a key concern raised by debt-push downs: the decrease in the target company's taxable income (through the interest deduction) is often not paired with any increase in taxable income. Given this concern, the article discusses the Dutch approach of discouraging debt push-downs, whereby a specific measure was abolished on 1 January 2019 in light of the implementation in Dutch law of the earnings stripping measure contained in the Anti-Tax Avoidance Directive (ATAD); a rule that reflects the BEPS Action 4 recommendations. The author examines more general questions: (1) How do debt push-downs fit within the policy notions underlying BEPS Action 4? (2) Does the new earnings-based approach take away the concerns raised by them? (3) Does the ATAD require Member States to take action against debt push-downs? The article concludes with an outlook on the ability of multinational corporations to push down debt in current times.
SOCIEDADES
CONCENTRACION
DEUDORES Y ACREEDORES
REDUCCION
EROSIÓN DE LA BASE IMPONIBLE Y TRASLADO DE BENEFICIOS
PROGRAMAS
FISCALIDAD INTERNACIONAL
ELUSION FISCAL
Intertax 0165-2826 v. 47, n. 5, May 2019, p. 444-453
Debt push-downs in times of BEPS Action 4 and the ATAD / G. F. Boulogne .-- , 2019
Resumen.
Debt push-downs are a common feature of mergers and acquisitions transactions. This article addresses a key concern raised by debt-push downs: the decrease in the target company's taxable income (through the interest deduction) is often not paired with any increase in taxable income. Given this concern, the article discusses the Dutch approach of discouraging debt push-downs, whereby a specific measure was abolished on 1 January 2019 in light of the implementation in Dutch law of the earnings stripping measure contained in the Anti-Tax Avoidance Directive (ATAD); a rule that reflects the BEPS Action 4 recommendations. The author examines more general questions: (1) How do debt push-downs fit within the policy notions underlying BEPS Action 4? (2) Does the new earnings-based approach take away the concerns raised by them? (3) Does the ATAD require Member States to take action against debt push-downs? The article concludes with an outlook on the ability of multinational corporations to push down debt in current times.
SOCIEDADES
CONCENTRACION
DEUDORES Y ACREEDORES
REDUCCION
EROSIÓN DE LA BASE IMPONIBLE Y TRASLADO DE BENEFICIOS
PROGRAMAS
FISCALIDAD INTERNACIONAL
ELUSION FISCAL
Intertax 0165-2826 v. 47, n. 5, May 2019, p. 444-453