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Tax 2020: Developments Affecting Financial Restructurings - Insolvency/Bankruptcy/Re-structuring

Updates to U.K. Anti-hybrid Rules Brexit and the U.K. as a Holding Company Jurisdiction Increasing Emphasis on Economic Substance Removal of the Cayman Islands from EU Blacklist Executive Summary During the course of 2020, the U.K. government has pushed ahead with introducing new measures that are likely to be of material relevance to financial restructurings and corporate reorganizations. There have also been other international developments this year that may have some bearing on international restructurings, which we discuss below. Joint and Several Liability Notices for Directors of Insolvent Companies The Finance Act 2020 provides Her Majesty s Revenue and Customs (HMRC) with new powers to issue notices to directors,

Tax 2020: Developments Affecting Financial Restructurings | Akin Gump Strauss Hauer & Feld LLP

Updates to U.K. Anti-hybrid Rules Brexit and the U.K. as a Holding Company Jurisdiction Increasing Emphasis on Economic Substance Removal of the Cayman Islands from EU Blacklist Executive Summary During the course of 2020, the U.K. government has pushed ahead with introducing new measures that are likely to be of material relevance to financial restructurings and corporate reorganizations. There have also been other international developments this year that may have some bearing on international restructurings, which we discuss below. Joint and Several Liability Notices for Directors of Insolvent Companies The Finance Act 2020 provides Her Majesty’s Revenue and Customs (HMRC) with new powers to issue notices to directors, shadow directors and certain other individuals connected to an entity (a ‘relevant person’) making them personally liable alongside the entity for its unpaid tax liabilities. These rules are targeted at arrangements that abuse insolvency procedures but

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