On 21 February 2017, the Council of the European Union announced that agreement has been reached during a meeting of the Economic and Financial Affairs Council on a draft directive that introduces rules to address hybrid mismatches with regard to non-EU countries based on OECD BEPS recommendations. The directive compliments and amends the anti-tax avoidance directive adopted in July 2016, which introduced rules addressing intra-EU hybrid mismatches, among other measures ({News-2016-06-22/A/2- previous coverage}). According to the announcement, The Council reached a compromise on the following issues: For hybrid regulatory capital, a carve-out from the rules is established for the banking...