Misuse of Company Mergers in Investment Funds?

Jáchym Lukeš () and Jana Skálová ()
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Jáchym Lukeš: University of Economics in Prague

A chapter in Digitalization in Finance and Accounting, 2021, pp 181-188 from Springer

Abstract: Abstract This chapter refers to two examples from the practice of an investment fund based on merger repetitions, the motives of which are often purely for tax reasons; these methods can therefore be labelled as aggressive tax planning or misuse of tax law. In the described examples, misuse occurs of investment fund mergers for the calculated transfer of property from subsidiaries to an investment fund which realizes its sale with a profit tax lowered to a 5% tax rate as opposed to the regular rate of 19%. The second example of misuse, then, is the calculated extension of the accounting and tax period with the aim of retaining a tax advantage after the change of legal conditions.

Keywords: Investment funds; Misuse of tax law; Merger; Reduced tax rate (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:spr:prbchp:978-3-030-55277-0_16

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DOI: 10.1007/978-3-030-55277-0_16

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