Рус Eng During last 365 days Approved articles: 2082,   Articles in work: 309 Declined articles: 853 
Articles and journals | Tariffs | Payments | Your profile

Back to contents

Problems of Taxation of Hybrid Financial Instruments
Loginova Tatiana Aleksandrovna

researcher at Tax Policy Center of the Financial Research Institute

127006, Russia, g. Moscow, per. Nastas'inskii, 3, stroenie 2
Другие публикации этого автора

Milogolov Nikolai Sergeevich

PhD in Economics

senior lecturer at Center for Tax Policy of the Financial Research Institute of the Ministry of Finance of the Russian Federation

127006, Russia, Moscow, str. Nastas'inski pereulok, 3, bld. 2
Другие публикации этого автора



Combination of debt and capital can be used as an instrument of tax planning. Hybrid mismatch arrangement is a tax planning technique which exploits the difference in qulifying of company or instrument for tax purposes in legislation of two or more jurisdictions. The aim of this scheme is to obtain tax advantage which will lead to diminishing of overall tax burden of group of companies. It is impossible to find out such tax planning technique and evaluate the existence of unbased tax advantage when analysing tax base of company only in one jurisdiction. Russian companies can be involved in such tax arbitrage technique because Russian jurisdiction is an object of international tax planning. There are no evidence of existence of such schemes because both court practice and Tax Code provisions aimes at countering such tax avoidance techniques are absent in Russia nowadays. In this article authors research possibilities and aims of using hybrid financial instruments in international tax planning, analyse relevant Russian tax law provosions. Also international expierence on setting anti-hybrid rules is reviewed. The methodological basis for the research are documents of OECD, European Commission, court cases, monographs and articles of Russian and foreign academics. The authors use common methods of research such as analysis, synthesis, deductuve approach, generalisation, and case analysis. As a result of this research they have detected a possibility of using certain techniques in international tax planning which facilitates tax avoidance. Risks of diminishing of corporate tax base in Russian Federation are increasing because of absence of anti-hybrid rules in Russian tax legislation. New ideas developed in this research include author’s suggestions on countering the possibilities of using hybrid mismatch arrangements in the tax jurisdiction of Russian Federation, in particular, we propose introduction of anti-hybrid legislation based on OECD Action 2 Deliverables. It will be in line with international best practice.

Keywords: double non-taxation, hybrid mismatches, tax planning, hybrid financial instrument, profit shifting, base erosion, tax policy, OECD, double deduction, non inclusion



Article was received:


Review date:


Publish date:


This article written in Russian. You can find full text of article in Russian here .

Gidirim V., Gibridnye finansovye instrumenty v Niderlandakh // TAXPROVO.RU. URL: 1/8 (data obrashcheniya: 15.08.2016).
Direktiva ES o materinskikh i dochernikh kompaniyakh URL: (data obrashcheniya:15.08.2016).
Kalinin S., Eder V. Ispol'zovanie gibridnykh finansovykh instrumentov v mezhdunarodnom nalogovom planirovanii // LEGAL INSIGHT № 8 (24) 2013.
Kotlyarov M.A., Rykova I.N., Protivodeistvie perenosu nalogovoi bazy v nizkonalogovye yurisdiktsii: opyt OESR i prioritety dlya Rossii // Nauchno-issledovatel'skii finansovyi institut. Finansovyi zhurnal. № 4 (22), 2014. S. 47-54.
Loginova T.A., Sposoby optimizatsii nalogooblozheniya, primenyaemye kholdingovymi kompaniyami // Nauchno-issledovatel'skii finansovyi institut. Finansovyi zhurnal. №2 (24), 2015. S.33-41.
Mezhdunarodnoe nalogooblozhenie: razmyvanie nalogovoi bazy s ispol'zovaniem ofshorov: monografiya / Pod red. M.R. Pinskoi-M.: NITs INFRA-M, 2015.-192 s.
Milogolov N.S., Pinskaya M.R., Pravila nalogooblozheniya kontroliruemykh inostrannykh kompanii: sravnitel'nyi analiz. // Nauchno-issledovatel'skii finansovyi institut. Finansovyi zhurnal. № 4 (22), 2014. S. 36-46.
Postanovlenie Plenuma VAS RF ot 12.10.2006 № 53 «Ob otsenke arbitrazhnymi sudami obosnovannosti polucheniya nalogoplatel'shchikom nalogovoi vygody».
Pis'mo Minfina Rossii ot 30.07.2012 № 03-03-10/84.
Press reliz Soveta ES URL: (data obrashcheniya: 12.10.2016).
Hybrid Mismatch Arrangements (OECD 2012). TAX POLICY AND COMPLIANCE ISSUES. URL: (data obrashcheniya: 15.08.2016).
Addressing Base Erosion and Profit Shifting. OECD (2013) Publishing. URL: (data obrashcheniya: 15.08.2016).
Bortnick Steven D. Strategies and Hybrid instruments: A Practitioner’s Perspective, June 15, 2007 edition of Practical U.S. / International Tax Strategies.
Council of the European Union EN Brussels, 8 July 2014 11647/14 (OR. en) PRESSE 387 Council adopts amendment closing tax loophole for corporate groups. URL: (data obrashcheniya: 15.08.2016).
Corporate tax avoidance: New rules adopted 12/07/2016 10:50 Press release 424/16 Single market Economy & finance. URL: (data obrashcheniya:15.08.2016).
EU Anti-Tax Avoidance Directive 24 June 2016 Political agreement has now been reached on the EU’s Anti-Tax Avoidance Directive (ATAD). URL: (data obrashcheniya: 15.08.2016).
EUROPEAN COMMISSION Brussels, 28.1.2016 COM(2016) 26 final 2016/0011 (CNS) Proposal for a COUNCIL DIRECTIVE laying down rules against tax avoidance practices that directly affect the functioning of the internal market, Article 10. URL: (data obrashcheniya: 15.08.2016).
Neutralising the Effects of Hybrid Mismatch Arrangements, OECD/G20 Base Erosion and Profit Shifting Project, OECD (2014) Publishing. (data obrashcheniya:15.08.2016).
Study on Structures of Aggressive Tax Planning and Indicators-Final Report-Specific contract No. 13 under FWC TAXUD/2012/CC116. Date 23.12.2015. Prepared by Henrik Meldgaard; Jakob Bundgaard; Katja Dyppel Weber; Alexandru Floristean; national tax experts. Checked by Xavier Le Den. Approved by Henrik Stener Pedersen. URL: (data obrashcheniya: 15.08.2016).