Hybrid mismatches typically originate from a different tax treatment of an entity, a permanent establishment or a financial instrument under the laws of two or more jurisdictions and may result in deduction without inclusion or double deduction outcomes (i.e., mismatch outcomes). In general, the hybrid mismatch rules target hybrid mismatches between associated enterprises, structured arrangements between third parties, imported hybrid mismatches and tax residency mismatches. 

At the same time, the hybrid mismatch rules should not create economic double taxation. This is ensured through a number of carve-outs and limitations that discharge the application of the hybrid mismatch rules (for example, timing differences, inclusion of the payment at the level of any payee, tax exempt status of the investor, transfer pricing adjustments). 

This workshop aims at providing participants with a clear overview of the hybrid mismatch rules and the reverse hybrid mismatch rule (the scope of which has been clarified recently), analyses how these rules may impact Alternative Investments in Luxembourg and considers opportunities to manage adverse tax consequences in practice.

Program :

• Introduction
• Hybrid mismatch rules

1. Mismatch outcomes
2. Relevant hybrid mismatch rule in the context of Alternative Investments
3. Scope of the hybrid mismatch rules

o   Related party test

o   Carve-out for minority investors in a fund context

1. Limits of the hybrid mismatch rules
2. Neutralisation of mismatch outcomes
3. Burden of proof
4. Case studies

•  Reverse hybrid mismatch rule

1. Scope of the reverse hybrid mismatch rule

o   Related party test

o   Carve-out for minority investors in a fund context

o   Exclusion of investors on grounds of their tax status

1. Tax treatment of reverse hybrid entities
2. Burden of proof
3. Case studies

• Conclusion

Duration and format :

• In-person training
• Duration: 3 hours

Speaker : 

    Oliver R. Hoor - International Tax Partner - ATOZ Tax Advisers

Oliver is a Partner in the International and Corporate Tax department of ATOZ. He is the Head of Transfer Pricing.

A tax professional since 2003, Oliver has experience in Luxembourg and international taxation with a focus on Alternative Investments (private equity, real estate, infrastructure, private debt, …), mergers & acquisitions and multinational groups. Oliver advises clients on all direct tax aspects regarding deal structuring (including transfer pricing), maintenance, reorganisations and exit planning.

Oliver is a member of the tax working groups of the Association of the Luxembourg Fund Industry (ALFI) and the Luxembourg Private Equity Association (LPEA). He is further a member of the tax committee of the Luxembourg Alternative Administrators Association (L3A), a founding member of the Luxembourg Transfer Pricing Association (LTPA) and a member of the International Fiscal Association (IFA).

Oliver is the author of more than 300 articles and books on Luxembourg and international taxation including Transfer Pricing and related documentation requirements, the OECD Base Erosion and Profit Shifting (“BEPS”) Project and the EU Anti-Tax Avoidance Directives (ATAD 1 & 2), reporting obligations of tax intermediaries (DAC6), current initiatives of the EU Commission in the field of direct taxation (ATAD 3, BEFIT, DEBRA, SAFE, DAC8, …), the OECD Model Tax Convention and Tax Treaties, EU Law and the State Aid investigations of the EU Commission (see www.atoz.lu/media-room). He is a regular speaker at conferences and a lecturer with Legitech and the Luxembourg Institute of Governance (ILA).

Oliver is qualified as a Chartered Accountant in Luxembourg (“Expert-Comptable”) as well as a certified German tax adviser (“Steuerberater”). He holds a post-graduate degree in Luxembourg Tax and a degree in Business Administration with a major in Tax from the University of Applied Sciences of Trier (Germany).