VivaHammerTax

Taxation of Hybrid Instruments

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“Taxation of Hybrid Instruments,” Derivatives and Financial Instruments, IBFD, November/December 1999 DFI 1999-11 Hybrids

I. Introduction

Corporate instruments are created to serve many purposes, and so may have characteristics that make them difficult to fit into a particular character box. There are many motivations for including various characteristics in an instrument, such as balancing the minority and majority interests in a corporation, as well as the debt and stakeholder. Increasingly, hybrids have proven to be versatile tools in adapting to various regulatory regimes, including Securities and Exchange Commission requirements, Financial Standards Accounting Board guidelines, and federal and state income tax rules.

Book Review: Methods of Mathematical Finance

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“Methods of Mathematical Finance,” Derivatives and Financial Instruments, IBFD, September/October 1999 DFI 1999-9 Methods Mathematical Finance

The book under review is a research monograph, suitable for people with a sophisticated understanding of mathematics. The authors use a reference to previous work of their throughout, Brownian Motion and Stochastic Calculus (Springer-Verlag 1991), and it is really necessary to read Mathematical Finance in conjunction with Brownian Motion.

The Tax Treatment of Credit Default Swap Proceeds

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“Taxation of Credit Derivatives,” Derivatives and Financial Instruments, IBFD, July/August 1999 DFI-1999-7 CDS

I. Introduction

Broadly defined, a credit derivative is a contract which requires one party to make payments or perform certain actions based on a credit event or the credit performance of a specified credit-sensitive instrument or instruments. A credit derivative can take the form of a swap, an option, a note, or a hybrid product.

This article will outline the major US federal income tax consideration in analyzing credit derivatives, focussing on the taxation of total return swaps, and credit put options. Before turning to the tax issues relating to these products, a brief comparison of credit derivatives and traditional credit risk management tools will be discussed.

The Tax Summit Project Reform

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At the Tax Institute’s major virtual conference ‘The Tax Summit Project Reform‘ on November 25, 2020, Viva spoke about her work on the Tax Cuts and Jobs Act, P.L. 115-97, while she was at the Joint Committee on Taxation, including work on the GILTI, BEAT, and FDII, as well as preparatory work on MODA, The Modernization of Derivatives Tax Act.

Panelists included: Dr Julianne Jaques, CTA Senior Counsel at the Victorian Bar, who moderated the panel, Former Prime Minister of New Zealand, Rt Hon Sir Bill English, who led New Zealand’s most significant tax reform since 1987, Shadow Assistant Minister for Treasury and Charities, the Hon. Dr Andrew Leigh MP and NSW Treasurer, the Hon. Dominic Perrottet MP, who has plans for reform to payroll taxes and stamp duty in his Budget.

Base Erosion and Anti-Abuse (BEAT)

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In January 2018 in Washington, D.C., Jones Day hosted “The Tax Cuts and Jobs Act: A Conference with the Government and Private Sector to Discuss the Legislation”, a full-day program sponsored by the D.C. Bar Community of Taxation and cosponsored by Tax Analysts and Bloomberg Tax.

Viva Hammer spoke on the Base Erosion and Anti-Abuse (BEAT) reported here 2018-1-25 DC Bar Bloomberg BEAT panel IRS, Treasury to Consider AntiBase Erosion Tax Rule Guidance