Targeted measures against intra-group debt financing electrónico what needs and design options in light of the ATAD, transfer pricing rules, and Pillar 2? Jérôme Monsenego
By: Monsenego, Jérôme
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Material type: 
ArticleSubject(s): GRUPOS DE EMPRESAS | GRUPOS DE SOCIEDADES | DEUDORES Y ACREEDORES | INTERES | LIMITACION | SUBCAPITALIZACIÓN | ELUSION FISCAL | ATAD | UNION EUROPEA
In:
Intertax v. 51, issue 10, October 2023, 15 p. Summary: This article explores the need for interest limitation rules targeting intra-group debt financing, together with certain design options. It is concluded that most issues related to intra-group debt financing are already covered by the anti-tax avoidance directive (ATAD), transfer pricing rules and the Pillar 2 reform. Only the debt/equity balance is not addressed by these rules. Therefore, thin capitalization rules appear to be the most motivated type of targeted rule, if such rules are to be adopted. Other types of targeted rules, such as those taking into account the level of taxation of the recipient or the intention to avoid tax are hardly justified in cases covered by the Pillar 2 reform. In addition, thin capitalization rules can be designed in a manner that does not distinguish between domestic and cross-border situations, hence raising fewer issues of compatibility with the EU fundamental freedoms than other types of targeted rules that rely on the difference in taxation between domestic and cross-border loan transactions.
| Item type | Current location | Home library | Call number | Status | Date due | Barcode |
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| Recursos electrónicos | IEF | IEF | OP 2141/2023/10-5 (Browse shelf) | Available | OP 2141/2023/10-5 |
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| OP 2141/2023/10-2 GLoBE | OP 2141/2023/10-3 UN MTC Article 14 | OP 2141/2023/10-4 A review of India approaches to cooperative compliance in light of the international tax practice and the OECD framework | OP 2141/2023/10-5 Targeted measures against intra-group debt financing | OP 2141/2023/10-6 Twenty years after the adoption of the Energy Taxation Directive, is its reform in a greener sense just an illusion? | OP 2141/2023/1-1 The FIAT case and the hidden consequences | OP 2141/2023/11 Intertax |
Resumen.
This article explores the need for interest limitation rules targeting intra-group debt financing, together with certain design options. It is concluded that most issues related to intra-group debt financing are already covered by the anti-tax avoidance directive (ATAD), transfer pricing rules and the Pillar 2 reform. Only the debt/equity balance is not addressed by these rules. Therefore, thin capitalization rules appear to be the most motivated type of targeted rule, if such rules are to be adopted. Other types of targeted rules, such as those taking into account the level of taxation of the recipient or the intention to avoid tax are hardly justified in cases covered by the Pillar 2 reform. In addition, thin capitalization rules can be designed in a manner that does not distinguish between domestic and cross-border situations, hence raising fewer issues of compatibility with the EU fundamental freedoms than other types of targeted rules that rely on the difference in taxation between domestic and cross-border loan transactions.
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