May 01 2020 34 mins 2
Doug McHoney (PwC's US International Tax Services Leader) and Neil Edwards (a Partner in PwC's ITS practice) analyze recently released guidance on the 'anti-hybrid rules' under Section 267A. Doug and Neil discuss: the general overview of the regulation package; how the anti-hybrid rules in the US compare to the OECD's recommendations in 'BEPS 1.0'; how the anti-hybrid rules in the US compare to the anti-hybrid rules in the UK and Australia; changes between the final anti-hybrid regulations and proposed anti-hybrid regulations, including the interest-free loan provision, imported mismatch rules, notional interest deduction (NID) rules, rules regarding deemed branch payments, the definition of a 'fiscally-transparent entity,' and the narrowing the 'interest' definition; and the proposed anti-conduit regulations under Section 881.
