Mon, Sep 30, 2019

Duff & Phelps’ Regulatory Tax Advisory Team Writes About Economic Substance for AIMA

Duff & Phelps Regulatory Tax Advisory team published an article in the most recent Alternative Investment Management Association (AIMA) Journal discussing the evolution of international tax systems over the last decade in the wake of the global financial crisis. 

An extract from the article is below.

“Following the 2008 financial crisis there has been an increased focus on tax avoidance and a desire to harmonize tax systems to try and minimize tax arbitrage. The OECD sought to address this by the introduction of the Base Erosion and Profit Shifting (BEPS) measures. These provisions seek to create alignment between global tax regimes. Whilst these measures provided recommendations on how harmonization may be achieved, adoption of the provisions was voluntary. As a result, the EU made the adoption of a number of these measures mandatory for the 27 Member States. BEPS Action 5 focusses on addressing substance requirements. The focus on addressing substance stems from abusive structures that sought to take advantage of cross border tax arrangements.”

Read the full article here.