Following the OECD’s 2011 report Corporate Loss Utilisation through Aggressive Tax Planning, the OECD released on 13 March 2013 a new report Aggressive Tax Planning Based on After-Tax Hedging. It describes the features of Aggressive Tax Planning (ATP) schemes based on after-tax hedging as well as the strategies used to detect and respond to those schemes. The report, which draws from schemes submitted to the OECD Directory on Aggressive Tax Planning, also highlights a number of challenges from a compliance and policy perspective. The report recognises that not all after-tax hedging arrangements are aggressive and that after-tax hedging in and of itself is not an issue, thus recommending countries to adopt a balanced approach in their response to after-tax hedging.
[LTN 50, 14/3/13]