DEBRA - Revision history

imported>Doug Williamson: Layout.

2022-02-22T09:44:21Z

Layout.

← Older revision		Revision as of 09:44, 22 February 2022
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	:"The green and digital transitions arising from the EU decision to move towards a climate neutral and digital economy will require large investments in new technologies and innovation that imply a need for capital.		:"The green and digital transitions arising from the EU decision to move towards a climate neutral and digital economy will require large investments in new technologies and innovation that imply a need for capital.

	:In such a context, equity financing facilitates risky investments in breakthrough technologies. An allowance for equity financing would		:In such a context, equity financing facilitates risky investments in breakthrough technologies. An allowance for equity financing would also contribute to the re-equitisation of companies.
	also contribute to the re-equitisation of companies.

	:Companies with a solid capital structure are less vulnerable to shocks, and more prone to make investments and take risks.		:Companies with a solid capital structure are less vulnerable to shocks, and more prone to make investments and take risks.

imported>Doug Williamson: Add quote - source - European Commission - https://ec.europa.eu/taxation_customs/system/files/2021-10/211007%20TGG%20Platform%20Meeting_EC%20discussion%20paper_DEBRA%20initiative.pdf

2022-02-22T09:36:50Z

Add quote - source - European Commission - https://ec.europa.eu/taxation_customs/system/files/2021-10/211007%20TGG%20Platform%20Meeting_EC%20discussion%20paper_DEBRA%20initiative.pdf

← Older revision		Revision as of 09:36, 22 February 2022
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	:''DEBRA - consultation - European Commission.''		:''DEBRA - consultation - European Commission.''



			:<span style="color:#4B0082">'''''DEBRA will contribute to re-equitisation'''''</span>

			:"The green and digital transitions arising from the EU decision to move towards a climate neutral and digital economy will require large investments in new technologies and innovation that imply a need for capital.

			:In such a context, equity financing facilitates risky investments in breakthrough technologies. An allowance for equity financing would
			also contribute to the re-equitisation of companies.

			:Companies with a solid capital structure are less vulnerable to shocks, and more prone to make investments and take risks.

			:This can positively affect competitiveness, growth and ultimately employment."

			:''DEBRA - consultation - European Commission - Commission expert group Platform for Tax Good Governance - October 2021.''


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	* [[Bankruptcy]]		* [[Bankruptcy]]
	* [[Business in Europe: Framework for Income Taxation]]		* [[Business in Europe: Framework for Income Taxation]]
			* [[Capital structure]]
	* [[Debt]]		* [[Debt]]
	* [[Debt equity ratio]]		* [[Debt equity ratio]]
	* [[Debt for equity swap]]		* [[Debt for equity swap]]
			* [[Digital economy]]
	* [[Directive]]		* [[Directive]]
	* [[Equity]]		* [[Equity]]
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	* [[European Union]]		* [[European Union]]
	* [[Notional]]		* [[Notional]]
			* [[Re-equitisation]]
	* [[SME]]		* [[SME]]
	* [[Tax]]		* [[Tax]]
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	* [[Tax avoidance]]		* [[Tax avoidance]]
	* [[Tax harmonisation]]		* [[Tax harmonisation]]
			* [[Transition]]

imported>Doug Williamson: Add links.

2022-02-21T15:33:10Z

Add links.

← Older revision		Revision as of 15:33, 21 February 2022
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	* [[European Commission]]		* [[European Commission]]
	* [[European Union]]		* [[European Union]]
			* [[Notional]]
			* [[SME]]
	* [[Tax]]		* [[Tax]]
	* [[Tax arbitrage]]		* [[Tax arbitrage]]

imported>Doug Williamson: Remove surplus text.

2022-02-21T15:24:54Z

Remove surplus text.

@@ Line 28: / Line 28: @@
 :''DEBRA - consultation - European Commission.''
@@ Line 82: / Line 34: @@
 * [[Bankruptcy]]
 * [[Business in Europe: Framework for Income Taxation]]
 * [[Debt]]
 * [[Debt equity ratio]]
@@ Line 88: / Line 39: @@
 * [[Directive]]
 * [[Equity]]
 * [[European Commission]]
 * [[European Union]]
 * [[Tax]]
 * [[Tax arbitrage]]
 * [[Tax avoidance]]
 * [[Tax harmonisation]]

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

2022-02-21T15:23:48Z

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

New page

''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.''

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.

:'''''Tax base harmonisation'''''

:"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''

:'''''Accounting harmonisation for crypto-assets'''''

:"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''

:'''''Accepting some inconsistency'''''

:"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.

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

==External link==
[https://ec.europa.eu/info/law/better-regulation/have-your-say/initiatives/12995-Debt-equity-bias-reduction-allowance-DEBRA-_en Debt-equity bias reduction allowance - European Commission]

[[Category:Accounting,_tax_and_regulation]]
[[Category:The_business_context]]
[[Category:Corporate_finance]]
[[Category:Identify_and_assess_risks]]
[[Category:Manage_risks]]