Jakob Bundgaard - Hybrid Financial Instruments in International Tax Law

Hybrid Financial Instruments in International Tax Law

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ISBN 978-90-411-8273-9

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2017 Kluwer Law International BV, The Netherlands

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Table of Contents

PART I
Setting the Scene

CHAPTER 1
Introduction

CHAPTER 2
Non-tax Framework and Drivers

CHAPTER 3
Basic Principles Determining the Taxation of Debt, Equity and Hybrid Financial Instruments

PART II
General Tax Framework Applicable to the Classification of Hybrid Financial Instruments

CHAPTER 4
Domestic Criteria Applied to the Classification of Hybrid Financial Instruments

CHAPTER 5
Classification of Hybrid Financial Instruments According to Tax Treaties

CHAPTER 6
General Principles for the Classification and Taxation of Hybrid Financial Instruments Derived from European Union Law

CHAPTER 7
Cross-Border Tax Arbitrage and Hybrid Financial Instruments

PART III
Classification and Treatment of Specific Hybrid Financial Instruments

CHAPTER 8
General Considerations

CHAPTER 9
Equity-Flavored Debt Instruments

CHAPTER 10
Debt-Flavored Equity Instruments

PART IV
Conclusions and Tax Policy Recommendations

CHAPTER 11
Conclusions

CHAPTER 12
Tax Policy Considerations

Preface

This study concerns hybrid financial instruments with an emphasis on international tax law issues arising in the context of issuance of and investment in such innovative financial instruments (IFIs) from a practical as well as a theoretical perspective.

The study has taken quite some time since the launch in early 2007, where I had the privilege of being a visiting scholar at Stanford Law School. Since then, I have not been able to allocate my full attention to the study due to other less academic duties, which explain the longevity of the writing process. Consequently, I have published some of the interim results along the way as articles in tax law periodicals.

Throughout the duration of the study, I have obtained generous and kind support for the project. The Deloitte Foundation and Deloitte, Copenhagen (my previous employer) have been enormously generous in their financial support to the project. This allowed me to spend some dedicated time to conduct the research, while having the privilege of working with the issues at hand in practice and also benefitting from the valuable knowledge and experience of skilled colleagues from all over the world. The study has moreover received financial support from the Nordic Tax Research Council (in 2007 and 2012), from Studiefonden of FSR (The Study Foundation of the Danish Association of State Authorized Public Accountants) and the Nasdaq OMX Foundation. I would like to express my sincere gratitude to all the sponsors for the valuable and much appreciated support.

I would also like to express my gratitude to Professor Jeff Strnad (Charles A. Beardsley Professor of Law at Stanford Law School) for sponsoring me, and consequently allowing me the opportunity to be a visiting scholar at Stanford Law School.

Gratitude is also extended to professor emeritus Aage Michelsen, University of Aarhus, for the curtsey of providing me with his valuable input regarding the early draft plan for the study.

I would like to send a word of gratitude to the invaluable colleagues at CORIT Advisory (in particular Katja Dyppel Weber, Peter Koerver Schmidt and Michael Tell), with whom I have been so fortunate to be able to discuss tax law issues for several years. Last but not least let me express my gratitude and love to my family (Cathrine, Elias, Cecilie and Filippa), who have travelled with me on longer research stays during the study.

All errors and misunderstandings remain my sole responsibility.

Jakob Bundgaard
Kongens Lyngby, May 2016

This book is # 6 in the CORIT Academic Books Series

List of Abbreviations