Classification of cross-border payments on hybrid instruments

Journal
Author
Helminen, M.
Country
European Union
Published Date
Issue
Bulletin for International Taxation 2004 (Volume 58), No. 2
FormatPDF
EUR
45
| USD
50 (VAT excl.)

Examines the issues associated with hybrid instruments and their classification. First summarizes the main differences between debt and equity and the tax treatment of interest and dividends. Then discusses the domestic law tax classification, the tax treaty classification, and the benefits of the EC Parent-Subsidiary Directive. Finally, considers the double taxation resulting from the inconsistent classification of payments on hybrid instruments and indicates how such double taxation can be eliminated.