The Resource Limitations on interest deduction : an EU law perspective

Limitations on interest deduction : an EU law perspective

Label
Limitations on interest deduction : an EU law perspective
Title
Limitations on interest deduction : an EU law perspective
Creator
Subject
Language
eng
Summary
On the one hand, EU law provides for important tools to implement measures against base erosion and profit shifting (BEPS), either through harmonisation of tax laws or through the use of the state aid provisions in the TFEU. On the other hand, EU law sets important limits which EU member states have to respect when implementing measures against BEPS, notably the TFEU's free movement provisions. This article discusses the proposed BEPS measures on limitations on interest deduction from these perspectives. It concludes that these measures need to comply with general principles of EU law, in particular the principle of legal certainty. In addition, rules on interest deduction should not go beyond what the arm's length principle permits a source state to tax and should permit the taxpayer to provide evidence that he has not had any tax avoidance motives. Measures which limit the deduction of payments on hybrid financial instruments should be internally consistent. Finally, EU member states should be careful with any exceptions to those rules, because state aid issues may easily arise
Citation source
In: British tax review. - London. - (2015),
http://library.link/vocab/creatorName
Douma, S.C.W
Geographic coverage
European Union
Language note
English
http://library.link/vocab/subjectName
  • OECD
  • BEPS
  • EU law
  • interest deduction
  • State aid
  • hybrid financial instrument
  • arm's length principle
Label
Limitations on interest deduction : an EU law perspective
Instantiates
Publication
Label
Limitations on interest deduction : an EU law perspective
Publication

Library Locations

    • IBFD Library AmsterdamBorrow it
      Rietlandpark 301, Amsterdam, 1019 DW, NL
      52.3736660 4.9336932
Processing Feedback ...