CCAB-I calls for consideration of compliant taxpayers on implementation of ATAD hybrid and interest rules

Jan 21, 2019

Chartered Accountants Ireland under the auspices of the CCAB-I provided a high level response to the Department of Finance’s consultation on anti-hybrid and interest restriction rules stemming from the Anti-Tax Avoidance Directive (ATAD).  The submission calls for consideration for the tax burden that further rules will place on already compliant taxpayers. 

The key points of the submissions are:

  • Ireland should not accelerate the introduction of any measures beyond the dates for implementation set out in the ATAD.
  • The anti-hybrid rules have the potential to be very complicated, particularly around the areas of defining hybrid entities and assessing whether a payment can be viewed as having been subject to tax. It is very important that the application of these rules is not administratively burdensome.
  • The implementation of the ATAD interest restriction rules should be delayed to allow time for taxpayers to prepare and align Ireland’s existing complex interest rules with ATAD rules.
  • Clear and timely transfer pricing guidance should be available to taxpayers for the purposes of managing and documenting transfer pricing policies that are likely to be relevant on the introduction of anti-hybrid and interest limitation rules into Irish tax law.