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O.E.C.D Targets Hybrid Mismatch Arrangements Using Branch Structures

Volume 3 No 8    |    Read Article

By Beate Erwin and Kenneth Lobo

Advisers who took comfort in the belief that the B.E.P.S. Project’s attack on hybrid mismatches did not apply to transactions between two branches of the same entity were disappointed when the O.E.C.D. released draft recommendations for domestic law that would neutralize income inclusion mismatches using branches located in different countries. Kenneth Lobo and Beate Erwin explain that D/NI, DD, and indirect D/NI outcomes are not legitimized when branches, rather than affiliates, are used.    See more →