PRESENTATION

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. 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 briefing, put together based on the recently published 2nd edition of the book entitled "Hybrid mismatch rules in Luxembourg: A practical guide", 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.

AGENDA

1. Introduction

2. Hybrid mismatch rules

• • Mismatch outcomes

• • Relevant hybrid mismatch rule in the context of Alternative Investments

• • Scope of the hybrid mismatch rules

  • • Related party test

  • • Carve-out for minority investors in a fund context

• • Limits of the hybrid mismatch rules

• • Neutralisation of mismatch outcomes

• • Burden of proof

• • Case studies                                                                                                                    

3. Reverse hybrid mismatch rule

• • Scope of the reverse hybrid mismatch rule

  • • Related party test

  • • Carve-out for minority investors in a fund context

  • • Exclusion of investors on grounds of their tax status

• • Tax treatment of reverse hybrid entities

• • Burden of proof

• • Case studies

SPEAKER

OLIVER R. HOOR
Oliver is a Partner in the International & Corporate Tax department at ATOZ.

A tax professional since 2003, Oliver has experience in Luxembourg and international taxation with a focus on alternative Investments (private equity, real estate, sovereign wealth funds, hedge funds), mergers & acquisitions and multinational groups. He advises clients on all direct tax aspects regarding deal structuring, maintenance, reorganisations and exit planning. He also holds the titles of Head of Transfer Pricing and of the German Desk.

Oliver is the author of more than 250 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/ATAD 2), reporting obligations of tax intermediaries (DAC6), 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 also a regular speaker at conferences as well as being a lecturer with Legitech and ILA.

Oliver is qualified as a Chartered Accountant in Luxembourg ("Expert-Comptable") and is 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.

EVENT TIMING

1:30 - 2:00 PM: registration and welcome coffee
2:00 - 5:00 PM: briefing
There will be a break at approximatively 3:30 PM

 THE BOOK

HYBRID MISMATCH RULES IN LUXEMBOURG | 2ND EDITION

 INSCRIPTION FEES

• Inscription to the conference without the book: 235€ tax included

• Inscription to the conference with the book: 300€ tax included
  

ACCREDITATION

The company Legitech has obtained the approval of the Luxembourg Bar.

CONTACT

Mme Carole VERDICQ
Tél : 0032 10 42 02 96
Email: [email protected]