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Review of application of hybrid mismatch rules to regulatory capital

Background

On 8 April 2016, the Treasurer requested the Board undertake a subsequent review to examine how best to implement the OECD Hybrid Mismatch Recommendations to eliminate deductible/frankable hybrid mismatch arrangements that arise in relation to regulatory capital.

Terms of Reference

Board’s Report on the Application of Hybrid Mismatch Rules to Regulatory Capital

The Board has completed its consultation on how best to implement the OECD Hybrid Mismatch Recommendations to eliminate deductible/frankable hybrid mismatch arrangements that arise in relation to regulatory capital. The Board provided its report to Government on 21 December 2016.

Government Response

The Government has announced a measure in the 2017-18 Budget, Tax Integrity Package – application of the OECD hybrid mismatch rules to regulatory capital, which forms the Government’s response to the report.

Further information

For further information about the Board’s work on Implementation of the hybrid mismatch rules, please contact the Board of Taxation Secretariat at taxboard@treasury.gov.au or (02) 6263 4366.