F 2011 - International Tax and Business Finance (Hybrid Cross Border Finance)


Type Research Project

Funding Bodies
  • Austrian Science Fund

Duration Sept. 13, 2003 - Dec. 31, 2010

http://www.sfb-itc.at/
  • Tax Management Group AB (Details)
  • Research Institute for International Taxation FI (Details)

Tags

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  • Eberhartinger, Eva (Details) Project Head
  • Six, Martin (Former researcher)
  • Wiedermann-Ondrej, Nadine (Former researcher)
 

Abstract (German)

Dieser Projektteil geht der Frage der steuerlichen Behandlung von Hybridfinanzierungen und den sich daraus ergebenden steuerlichen Gestaltungsmöglichkeiten aus der Sicht österreichischer Investor/inn/en im Ausland sowie ausländischer Investor/inn/en in Österreich nach. Dazu werden Fragestellungen des österreichischen bzw. ausländischen nationalen Steuerrechts und des Doppelbesteuerungsrechts behandelt.

Aufgrund der unterschiedlichen ertragsteuerrechtlichen Behandlung von Eigen- und Fremdfinanzierung ist die Stellung von Hybridfinanzierungen und damit deren ertragsteuerliche Behandlung von besonderer Bedeutung. Grundlage zur Beantwortung dieser Frage sind die nationalen Steuergesetze der zu untersuchenden Länder und die betreffenden Außensteuergesetze. Daher ist ein umfassender interdisziplinärer Zusammenhang mit dem Bereich des Steuerrechts gegeben.

Während steuerliche Gestaltungsmöglichkeiten mit hybriden Finanzierungsinstrumenten im deutschsprachigen Raum teilweise erforscht sind, und auch einzelne internationale Aspekte insb. in der deutschen Literatur (nur in sehr geringem Umfang in der österreichischen Literatur) behandelt werden, gibt es in Österreich keine und in Deutschland keine Literatur, welche die hier skizzierte Problemstellung des Kapitalexports umfassend behandelt.


Abstract (English)

The major focus of the research project is on finance decisions in an international context. Decision makers have to deal with economic and legal uncertainty. Legal uncertainty, regarding tax law, is particularly high in cross border scenarios. So management decisions become even more complex, when the option of hybrid finance instruments is taken into account.

Two different approaches will be used to analyze the effect of economic and tax law uncertainties on finance decisions of enterprises:

a) Simulation approach
Theoretical research shall mainly be focused on modeling hybrid finance instruments and their tax treatment in an environment under economic and legal uncertainty. By analyzing hybrid financial instruments under economic uncertainty we expect to identify constellations where hybrid finance in comparison to classical finance is less advantageous than theoretical analysis under certainty indicates. An additional major point in decision making that could explain why decision makers are reluctant to use hybrid finance, is legal uncertainty as defined above.

b) Experimental approach
While the simulation focuses on aspects of uncertainty, the experiment adds the aspect of tax complexity. In general, the determinants of using cross border finance instruments are investigated on an individual level where, specifically, the following main factors are assumed to largely affect the decision for or against hybrid finance: 1. the risk attitude of the decision maker, 2. tax complexity. Disentangling the two latter factors has been neglected in the previous literature but becomes particularly important for taking cross border finance decisions. In addition to the three main determinants, two further aspects are considered: the market context of the finance decision and legal advice, both of which are known to affect decision quality.

Publications

Journal article

2010 Göritzer, Andreas. 2010. Der EBITDA-Vortrag der deutschen Zinsschranke. SWI (10): 484-490. (Details)
2009 Eberhartinger, Eva, Six, Martin. 2009. Taxation of Cross-Border Hybrid Finance - A Legal Analysis. Intertax 37 4-18. (Details)
2008 Wiedermann-Ondrej, Nadine. 2008. Tax Treatment of Revenue-Based Payments. International Tax Journal 39-54. (Details)

Chapter in edited volume

2007 Eberhartinger, Eva, Six, Martin. 2007. National Tax Policy, the Directives and Hybrid Finance . In: National Tax Policy in Europe - to be or not to be?, Hrsg. Andersson, K./Eberhartinger, E./Oxelheim, L., 213-236. Heidelberg: Springer. (Details)
2006 Eberhartinger, Eva, Hofians, Robert, Six, Martin. 2006. Die Behandlung von Mezzaninkapital nach IAS/IFRS, HGB und Steuerrecht. In: Wirtschaftsprüfer-Jahrbuch 2006, Hrsg. Institut Österreichischer Wirtschaftsprüfer, 231-274. Wien: Linde. (Details)

Contribution to conference proceedings

2007 Six, Martin. 2007. Hybrid Finance in the Double Tax Treaties. In Advances in Global Business Research, Vol. 4, No. 1, Part 1., Proceedings of the 2007 Academy for Business Advancement (AGBA) Fourth World Congress, Hrsg. Academy for Global Business Advancement, 306-309. Penang, Malaysia: (Details)
  Ruprecht, Margret. 2007. Tax Consequences of Hybrid Finance in Thin Capitalization Situations: An Analysis of the Substantive Scope of National Thin Capitalization Rules with special emphasis on Hybrid Financial Instruments. In Advances in Global Business Research Vol. 4, No. 1, Part 1, Proceedings of the 2007 Academy for Global Business Advancement (AGBA) Fourth World Congress, Hrsg. Academy for Global Business Advancement, 319-330. Penang, Malaysia: -. (Details)
2006 Wiedermann-Ondrej, Nadine. 2006. Hybrid Finance and the Indirect Credit Method – Does it Work?. In Proceedings of National Tax Association Conference 2006, Hrsg. American National Tax Association, 321-330. Boston: (Details)
  Eberhartinger, Eva, Six, Martin. 2006. National Tax Policy, the Directives and Hybrid Finance. In 32nd EIBA Annual Conference, Conference Proceedings, Hrsg. EIBA, - . Fribourg, Available on CD-Rom: -. (Details)

Paper presented at an academic conference or symposium

2007 Ruprecht, Margret. 2007. Tax Consequences of Hybrid Finance in Thin Capitalization Situations. 4th World Congress of the Academy for Global Business Advancement, Penang, Malaysia, 21.05.-25.05.. (Details)
2006 Wiedermann-Ondrej, Nadine. 2006. Taxation of Revenue Based Payments. 13th Annual Global Finance Conference, Rio de Janeiro, Brasilien, 25.4. - 28.4.2006. (Details)
  Ruprecht, Margret. 2006. Steuerliche Wirkung von hybriden Finazierungsinstrumenten bei Unterkapitalisierung im Ländervergleich. SFB - Jahrestagung, Wien, Österreich, 25.9.2006. (Details)
  Wiedermann-Ondrej, Nadine. 2006. Hybrid Finance and the Indirect Credit Method – Does it Work?. 29. Jahreskongress der European Accounting Association (EAA), Dublin, Irland, 22.3. - 24.3.2006. (Details)

Poster presented at an academic conference or symposium

2006 Ruprecht, Margret. 2006. International Thin Capitalization Rules by Comparison with special emphasis on Hybrid Cross-Border Finance. IFA-Kongress, Amsterdam, Österreich, 17.9.-21.9.. (Details)

Working/discussion paper, preprint

2010 Eberhartinger, Eva, Fellner, Gerlinde. 2010. Why don't they minimize their tax? An experimental approach to hybrid finance. SFB International Tax Coordination Working Paper No. 39. (Details)
2007 Ruprecht, Margret. 2007. The Consequences of Hybrid Finance in Thin Capitalization Situations. Discussion Paper Nr. 22 des SFB International Tax Coordination, WU Wien. (Details)

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