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The Anti-Tax Avodance Directive and its implication to the tax shields: Administrative limitation of tax shield value

Současná hodnota daňových štítů po implementaci "Anti-Tax Avoidance Directive": limitace dosažení daňových úrokových štítů

Tomáš Brabenec

Český finanční a účetní časopis, 2019, vol. 2019, issue 2, 37-52

Abstract: The article analyses expected impacts of The Anti-Tax Avoidance Directive (ATAD) implementation, respectively planned amendment to the Czech Income Tax Act, which implements among others also administrative limitations on tax deductibility of interest expenses, and tax shields used in company valuation. The article presents time distortion in calculation of tax deductibility of interest expenses and the amount of interest-bearing capital after the regulation on a practical example. Then it defines general formulas for the calculation of tax shields resulting from the regulation including the model for the second phase of valuation. The article states the main topics in business valuation which will be affected by the regulation.

Keywords: Debt; Cost of debt; Tax shields; Anti-Tax Avoidance Directive (ATAD); Cizí kapitál; Nákladové úroky; Daňový štít; Směrnice ATAD (search for similar items in EconPapers)
JEL-codes: G30 G31 G32 (search for similar items in EconPapers)
Date: 2019
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Český finanční a účetní časopis, Vysoká škola ekonomická v Praze, nám. W. Churchilla 4, 130 67 Praha 3

DOI: 10.18267/j.cfuc.530

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