To anyone involved in the infrastructure sector, action point four of the OECD’s BEPS project – to ‘limit base erosion via interest deductions and other financial payments’ – is bad news for highly geared projects, writes Eloise Walker (Pinsent Masons)
HM Treasury and HMRC officials are meeting with representatives of the PPP/PFI industry to discuss the implications of possible future restrictions to the UK’s favourable rules for interest deductions. Such restrictions are likely in light of the OECD BEPS project but they would have an especially detrimental effect for long-term infrastructure projects. Such projects are priced by reference to the current rules and none of the OECD’s proposals are likely to be welcome.
‘The BEPS men are coming – and they are coming for you.’ It sounds like the opening line of a really bad...
