Date: 17 & 18 November 2008
Location: Amsterdam
Course Code: OC08DER2
Level: Introductory

This course deals with the legal, accounting and tax aspects of derivative instruments. Particular attention
is given to the tax treatment of such instruments from a domestic and international tax perspective.
Participants will acquire a structured background knowledge of the concepts and principles of derivative
instruments. They will learn what to look for when dealing with derivatives; the questions to ask; the issues to solve; the different approaches of domestic legislations; and how to apply double taxation treaties.
This two-day intensive course is divided into two sessions. Session one is dedicated both to the legal and accounting treatment of derivatives, whilst session two is wholly focused on the domestic and tax treaty

aspects. The course will end with a case study to enable participants to gain confidence in applying the
skills acquired during the course.

Introduction

-The concept of derivative instrument
-Legal, accounting and tax framework

Main Types of Derivatives

-Commodities and financial derivatives

-Credit Derivatives

-Equity Derivatives

Accounting Treatment of Derivatives

-Hedging v. trading

-Mark-to-market and fair value measurement

-Unrealized gains and losses

-Current income

Domestic Tax Law Aspects of Derivatives

-Characterization

-Deductibility

-Timing

-Withholding tax

-Anti-avoidance rules

Tax Treaty Aspects of Derivatives

-Characterization

-Art. 7 (Business Profit)

-Art. 11 (Interest)

-Art. 13 (Capital Gains)

-Art. 21 (Other Income)
-Timing issues