Domestic reverse hybrids : recharacterization of deemed interest payments as dividends

Journal
Author
Joseph, A.
Country
United States
Published Date
Issue
Finance and Capital Markets (formerly Derivatives & Financial Instruments) 2007 (Volume 9), No. 1
FormatPDF
EUR
45
| USD
50 (VAT excl.)

A July 2006 IRS Legal Memorandum reflects the US intention to deny treaty benefits to certain transactions involving hybrids. The interaction of the check-the-box practice in the United States and the "fiscally transparent entity" articles in income tax treaties are the subject of this Memorandum. After an introduction, this article considers US reverse hybrid regulations and the IRS decision, and the Australia-United States treaty.