Český finanční a účetní časopis 2010(4):7-18 | DOI: 10.18267/j.cfuc.82

Complicated Transfer of Tax Losses between Entities in the European Union

Jana Skálová
Ing. Jana Skálová, Ph.D. - odborná asistentka; Katedra finančního účetnictví a auditingu, Fakulta financí a účetnictví, Vysoká škola ekonomická v Praze, nám. W. Churchilla 4, 130 67 Praha 3; <jana.skalova@tpahorwath.cz>.

The article deals with the possibility of taxing the company plans to expand abroad through cross-border mergers. They discussed two alternatives fiscal relations - establishment of a subsidiary company for the use of losses incurred by subsidiary companies to reduce the tax base of the parent company. The second alternative examines the application of the losses incurred during the existence of branches abroad. Income tax advantages that may be gained in cross-border merger were implemented by virtue of Directive 90/434/EEC. The Income Tax Act allows Czech successor companies to take over tax losses that were incurred by foreign merging companies and that have not been used yet. At this point, tax advantages could be at least described as problematic or even unattainable.

Keywords: Cross-border merger; Tax loss; Subsidiary; Branch.
JEL classification: G34, K34

Published: December 1, 2010  Show citation

ACS AIP APA ASA Harvard Chicago Chicago Notes IEEE ISO690 MLA NLM Turabian Vancouver
Skálová, J. (2010). Complicated Transfer of Tax Losses between Entities in the European Union. Czech Financial and Accounting Journal, 2010(4), 7-18. doi: 10.18267/j.cfuc.82
Download citation
  • BibTeX (.bib)
  • Bookends (.ris)
  • EasyBib (.ris)
  • EndNote (.enw)
  • EndNote 8 (.xml)
  • ISI WoS (.isi)
  • Medlars (.medlars)
  • Mendeley (.ris)
  • MODS (.xml)
  • Papers (.ris)
  • RefWorks (.txt)
  • RefManager (.ris)
  • RIS (.ris)
  • MS Word (.xml)
  • Zotero (.ris)
    • Open full article

    References

    1. Dědič, J. - Čech, P. (2004): Obchodní právo po vstupu ČR do EU. Praha, Polygon, 2004.
    2. Dědič, J. - Lasák, J. (2009): Přehled judikatury - Přeměny obchodních společností, Převod podniku a jeho části. Praha, Wolters Kluwer ČR, 2009.
    3. EC (2009): Survey of the implementation of Council Directive 90/434/EEC. [on-line], Brussels, European Commission, c2009, [cit. 12. 10. 2010], <http://ec.europa.eu/taxation_customs/common/publications/studies/index_en.htm>.
    4. Galla H. - Haimler, F. (2009), Investitionen und Steuern in Rumanien, Wien, Linde Verlag, 2009.
    5. Gerven, D. (2009): Cross-border merger in Europe, Cambridge, Cambridge University Press, 2010.
    6. Helminen, M. (2009): EU Tax Law Direct Taxation. Amsterdam, IBFD, 2009.
    7. Kulenkamp, S. (2009): Die grenzüberschreitende Verschmelzung von Kapitalgesellschaften in der EU. Baden-Baden, Nomos, 2009. Go to original source...
    8. Kuhn, P. - Štenglová, I. aj. (2010): Zákon o přeměnách obchodních společností a družstev. Komentář. Praha, C. H. Beck, 2010.
    9. Mejzlík, L. - Pelák, J. (2008): Czech Accounting Regulation - The Way from Communism to European Union Memberschip. In 12th World Congress of Accounting Historians (WCAH). Istanbul, AVCIOL, 2008, s. 162.
    10. Rylová, Z. (2009): Mezinárodní dvojí zdanění. Olomouc, Anag, 2009.
    11. Skálová, J. (2010): Účetní, právní a daňové aspekty přeshraničních fúzí v EU. Praha, Vysoká škola ekonomická, 2010, disertační práce.
    12. Sojka, V. (2006): Mezinárodní zdanění příjmů - Smlouvy o zamezení dvojího zdanění a zákon o daních z příjmů. Praha, ASPI, 2006.

    This is an open access article distributed under the terms of the Creative Commons Attribution 4.0 International License (CC BY 4.0), which permits use, distribution, and reproduction in any medium, provided the original publication is properly cited. No use, distribution or reproduction is permitted which does not comply with these terms.


    Return to the content