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Clifford Chance

Clifford Chance


BEPS Action 6 – revised discussion draft on Treaty Abuse: what do the latest proposals mean for securitisations and SPVs?

26 May 2015

The previous BEPS discussion drafts on "Treaty Abuse" proposed changes to double tax treaties which would exclude many securitisation issuers and other SPVs from treaty relief. This result appeared to be unintentional, and so we and others made representations to the OECD asking for the proposals to be modified to prevent these important sources of liquidity and funding being excluded from international markets.

The OECD responded on Friday with a revised discussion draft – however, unfortunately very little progress has been made.

This briefing summarises the latest proposals, and consider what these proposals are likely to mean in practice for SPVs and the securitisation market, and how market participants should react.

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