DEBRA: Difference between revisions

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imported>Doug Williamson
(Create page - source - European Commission - https://ec.europa.eu/info/law/better-regulation/have-your-say/initiatives/12995-Debt-equity-bias-reduction-allowance-DEBRA-_en)
 
imported>Doug Williamson
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:''DEBRA - consultation - European Commission.''
:''DEBRA - consultation - European Commission.''
The act of making laws, regulations, systems or practices the same - or sufficiently similar - in different countries, companies or the like, so that they can work together more easily.
The potential benefits of harmonisation include:
*Spreading better practices and appropriate standards more widely, more quickly.
*Reducing the scope for tax arbitrage, regulatory arbitrage and smuggling.
*Reducing error rates in reporting.
*Saving reporting and other administration costs.
:<span style="color:#4B0082">'''''Tax base harmonisation'''''</span>
:"Agreement on tax base harmonisation has been a slow process.
:Supporters of harmonisation continue to argue the case, especially before their domestic electorates.
:Supporters of harmonisation have also proposed the introduction of a common tax base among a voluntary coalition of willing Member States if agreement among all Member States is not forthcoming."
:''Common Consolidated Corporate Tax Base - Treasurer's Wiki''
:<span style="color:#4B0082">'''''Accounting harmonisation for crypto-assets'''''</span>
:"The regulation on prudential requirements for credit institutions... as it currently stands, is not tailored to crypto-assets in light of their high volatility...
:A classification of crypto-assets as intangible assets (IAS 38) would automatically mean that crypto-assets would be deducted prudentially.  Accounting standard setting bodies/authorities could pursue a harmonised accounting treatment by prescribing that banks should account for crypto-assets as intangible assets."
:''Crypto-assets - European Central Bank''
:<span style="color:#4B0082">'''''Accepting some inconsistency'''''</span>
:"Existential coaching recognises that the client's worldview will only rarely be complete, coherent or consistent.
:Whilst some aspects will be reconcilable, others will be incapable of being resolved or harmonised."
:''Worldview - the Treasurer's Wiki''
2.  ''European Union (EU).''
In the EU context, harmonisation refers to the determination of EU-wide legally binding standards to be met in all Member States.
Also spelt Harmonization.




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* [[Bankruptcy]]
* [[Bankruptcy]]
* [[Business in Europe: Framework for Income Taxation]]
* [[Business in Europe: Framework for Income Taxation]]
* [[Cryptoassets]]
* [[Debt]]
* [[Debt]]
* [[Debt equity ratio]]
* [[Debt equity ratio]]
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* [[Directive]]
* [[Directive]]
* [[Equity]]
* [[Equity]]
* [[Equivalence]]
* [[European Central Bank]]
* [[European Commission]]
* [[European Commission]]
* [[European Union]]
* [[European Union]]
* [[European Union (Withdrawal Agreement) Act 2020]]
* [[Existential coaching]]
* [[Goal congruence]]
* [[Member state]]
* [[Payments and payment systems]]
* [[Protectionism]]
* [[Regulatory arbitrage]]
* [[Smuggling]]
* [[Tax]]
* [[Tax]]
* [[Tax arbitrage]]
* [[Tax arbitrage]]
* [[Tax avoidance]]
* [[Tax avoidance]]
* [[Tax harmonisation]]
* [[Tax harmonisation]]
* [[Worldview]]




Revision as of 15:24, 21 February 2022

Tax - tax avoidance - European Union (EU).

Abbreviation for the Debt-equity bias reduction allowance tax initiative of the EU.

The EU's DEBRA tax initiative aims to encourage companies to finance themselves with equity rather than with debt financing.


Reducing the risk of bankruptcies
"Over-indebtedness could threaten the stability of the financial system and increase the risk of bankruptcies, which would in turn increase unemployment.
"The [DEBRA] initiative will introduce an allowance for equity-financed new investment, to mitigate debt bias.
"The whole scheme will incorporate a number of robust anti-tax avoidance rules to ensure tax fairness."
DEBRA - proposal for a Directive - European Commission.


DEBRA - what we're consulting on
"The objective of the consultation is to collect views and opinions... on the perception of the tax induced debt-equity bias and the possible solutions to tackle it.
To this aim, the consultation will gather information and knowledge on the existence and magnitude of indebtedness due to the tax debt bias and potential impacts of the policy options...
The information gathered through the consultation will comprise the definition of equity, the reasons for indebtedness of EU companies, possible solutions to address the tax induced debt-equity bias, the appropriate level of the notional interest rate for an allowance on equity, or the need for a higher rate for SMEs.
Concerning the anti-abuse framework, the input gathered through the consultation should provide us with information on stakeholders’ views on an effective, proportionate and dissuasive framework of anti-abuse rules linked to the measure."
DEBRA - consultation - European Commission.


See also


External link

Debt-equity bias reduction allowance - European Commission

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