Continuing its studies into the impact of and solutions to aggressive tax practices, the OECD has published a report on aggressive tax planning schemes based on after-tax hedging.

Following on from the OECD's report Corporate Loss Utilisation through Aggressive Tax Planning (2011), Aggressive Tax Planning Based on After-Tax Hedging describes the features of ATP schemes based on after-tax hedging as well as the strategies used to detect and respond to those schemes. However the report also recognises that not all after-tax hedging arrangements are aggressive and recommends countries to adopt a balanced approach in their response to after-tax hedging.

The report makes a number of recommendations which include the introduction of rules to avoid or mitigate the disparate tax treatment of hedged items and hedging instruments and verification of whether existing anti-avoidance rules are suitable to counter ATP schemes based on after-tax hedging.