Complicated Transfer of Tax Losses between Entities in the European Union

Komplikovaný přenos daňové ztráty mezi subjekty v zemích Evropské unie

Jana Skálová ()

Český finanční a účetní časopis, 2010, vol. 2010, issue 4, 7-18

Abstract: 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; Přeshraniční fúze; Daňová ztráta; Dceřiná společnost; Organizační složka (search for similar items in EconPapers)
JEL-codes: G34 K34 (search for similar items in EconPapers)
Date: 2010
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DOI: 10.18267/j.cfuc.82

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