Anti-hybrid rules: the forgotten reform provisions

Doug McHoney (PwC's US International Tax Services Leader) and Nils Cousin (PwC ITS Director) discuss recently released regulations under Sections 245A and 267A. Among other topics, they cover for 245A, the notional interest deductions, eligibility for the DRD, previously taxed E and P (PTEP), the impact on the deal environment. For 267A, the regs expand on the brief statute, and Doug and Nils cover the requirements to meet the deduction disallowance, effective dates, the rules (and definitions) that emanate from OCED BEPS Action item 2, the extent to which CFCs need to be concerned with these regs (good news), the types of payments subject to 267A, broad definitions of interest and royalties, and the dual consolidated loss rules.