In this paper we visit the capital income taxation in Brazil to know whether and to what extent interest on net equity (INE) has an influence on tax neutrality, i.e., if it helps reducing debt financing advantage over equity. The paper also addresses the persistent Brazilian high interest rates...

The paper addresses the long standing asymmetry in the tax treatment of debt and equity costs through a direct comparison of two hypothetical regimes based exclusively on income taxation, broadly defined, and value added taxation. The model presented widens existing debate to encompass the...

The purpose of this article is the presentation of issues related to hybrid instruments. We will primarily focus on the analysis of various aspects of hybrid instruments and entities. The use of these instruments produces fairly significant tax implications that have specific effects on the...