Abstract: Combination of debt and capital can be used as an instrument of tax planning. Hybrid mismatch arrangement is a tax planning technique which exploits the difference in qulifying of company or instrument for tax purposes in legislation of two or more jurisdictions. The aim of this scheme is to obtain tax advantage which will lead to diminishing of overall tax burden of group of companies. It is impossible to find out such tax planning technique and evaluate the existence of unbased tax advantage when analysing tax base of company only in one jurisdiction. Russian companies can be involved in such tax arbitrage technique because Russian jurisdiction is an object of international tax planning. There are no evidence of existence of such schemes because both court practice and Tax Code provisions aimes at countering such tax avoidance techniques are absent in Russia nowadays. In this article authors research possibilities and aims of using hybrid financial instruments in international tax planning, analyse relevant Russian tax law provosions. Also international expierence on setting anti-hybrid rules is reviewed. The methodological basis for the research are documents of OECD, European Commission, court cases, monographs and articles of Russian and foreign academics. The authors use common methods of research such as analysis, synthesis, deductuve approach, generalisation, and case analysis. As a result of this research they have detected a possibility of using certain techniques in international tax planning which facilitates tax avoidance. Risks of diminishing of corporate tax base in Russian Federation are increasing because of absence of anti-hybrid rules in Russian tax legislation. New ideas developed in this research include author’s suggestions on countering the possibilities of using hybrid mismatch arrangements in the tax jurisdiction of Russian Federation, in particular, we propose introduction of anti-hybrid legislation based on OECD Action 2 Deliverables. It will be in line with international best practice.