Insurance EuropeInsurance Europe
Position Paper
Comments on the OECD discussion draft on BEPS action 2 - Neutralise the effects of hybrid mismatch arrangements

Insurance Europe is concerned that the proposed Organisation for Economic Cooperation and Development (OECD) rules on hybrid instruments will impact the hybrid regulatory capital of insurers. The hybrid regulatory capital issued by insurers is not designed to create tax mismatches and its use does not constitute a harmful tax practice. If this were to be impacted by the proposed OECD rules, not only would it have a disproportionate administrative burden, but it could increase the cost of raising capital and adversely affect the competitiveness of the insurance sector.

Published 6 May 2014