YEAR 2024 No 2 Volume 34

ISSN 2182-9845

Hybrid asymmetries and their impact on tax base erosion

Filipa Margarida Dias Santa / José de Campos Amorim


Hybrid asymmetries; OECD; BEPS; Abusive tax planning; Tax evasion; Tax avoidance.


Hybrid asymmetries, resulting from the different classification of financial instruments, entities and payments made by different jurisdictions, have been used by large companies in tax planning schemes to achieve situations of double non-taxation, double deductions and deductions without the inclusion of the respective income, which will have resulted in the erosion of the tax base and the transfer of profits to more tax-favorable countries. As a result of these asymmetries, the OECD and the European Union have implemented a number of measures to neutralize them, set out in Action 2 of the BEPS Action Plan, concerning hybrid asymmetries and their effects, and in the Anti-Tax Avoidance Directives, which have been transposed into the IRC Code.

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