Hallmark overview

Category A
Generic hallmarks linked to the main benefit test

Taxpayer or participant under a confidentiality condition in respect of how the arrangements secure a tax advantage

Standardised documentation and/or structure

Category B
Specific hallmarks linked to the main benefit test

B.1

Loss-buying

B.2

Converting income into capital

B.3

Circular transaction resulting in the round-tripping of funds involving interposed entities with no commercial function, or transactions which offset or cancel each other out

Category C
Specific hallmarks related to cross-border transactions

Deductible cross-border payments between associated enterprises where one of the following conditions occurs:

(a) the recipient is not resident for tax purposes in any jurisdiction;

(b) the recipient is resident in a jurisdiction which:

 (i) has 0% or near 0% corporate tax rate; or

 (ii) is “non-cooperative”;

(c) the payment benefits from a full exemption from tax in the recipient’s jurisdiction;

(d) the payment benefits from a preferential tax regime in the recipient’s jurisdiction

Deductions for the same depreciation on the asset claimed in more than one jurisdiction

Relief from double taxation in respect of the same item of income or capital claimed in more than one jurisdiction

Assets transfers where amount treated as payable is materially different between the jurisdictions involved

Category D
Specific hallmarks concerning automatic exchange of information and beneficial ownership 

D.1

Arrangements which have the effect of undermining reporting requirements under agreements for the automatic exchange of Financial Account information

D.2

(a) do not carry on a substantive economic activity supported by adequate staff, equipment, assets and premises; and

(b) are incorporated, managed, resident, controlled or established in any jurisdiction other than the jurisdiction of residence of one or more of the beneficial owners of the assets held by such persons, legal arrangements or structures; and

(c) where the beneficial owners of such persons, legal arrangements or structures, as defined in Directive (EU) 2015/849, are made unidentifiable

Category E
Specific hallmarks concerning transfer pricing

E.1

Arrangements involving the use of unilateral safe harbour rules

No

E.2

Transfer of HTVIs between associated enterprises

No

E.3

Intra-group cross-border transfer of functions/risks/assets causing a more than 50% decrease in EBIT during the three-year period after the transfer