ATAD 2: Be aware, be cautious
As from 1 January 2020, Luxembourg has revised its hybrid mismatch provisions to comply with the second EU anti-avoidance directive (ATAD 2). ATAD 2 introduces complex new rules to address hybrid mismatches arising in cross-border situations. While it appears they may not touch the fund industry in a significant way, it is important to be aware of them in order not to be caught off guard.
As a starting point, you must know the status of your investors – how do they look at the fund; in which jurisdictions are they located? This gives you a clear view of whether or not you will need to deal with these issues.
While greater transparency and information gathering on investors is essential for the fund manager, it is equally important for the investors themselves who are in fact asking that these measures be addressed. Danièle Buchler, Tax Consultant and Olivier Van Ermengem, Tax Partner at Linklaters Luxembourg examine how the fund industry can respond.
Click here to know more on what you need to do for ATAD 2.