Sticks and snakes: derivatives and curtailing aggressive tax planning

Complex “derivative” financial instruments are often used in aggressive tax planning. In response, the government has implemented mark-to-market type reforms, but only partially. Considered in isolation,these incremental reforms are likely to seem well advised in measuring income more accurately. However, there is an important “second best” cost, emphasized in this Article: the ability of well-advised taxpayers either to avoid the new rule or to turn it to their advantage (here…