EconPapers    
Economics at your fingertips  
 

Dopad změn podmínek pro aplikaci zvýhodněné daňové sazby u nemovitostních investičních fondů v České republice

Impact of Changing Preferential Tax Rate Conditions on Czech Real Estate Investment Funds

Jáchym Lukeš and Jana Skálová

Politická ekonomie, 2022, vol. 2022, issue 2, 135-157

Abstract: Impact of Changing Preferential Tax Rate Conditions on Czech Real Estate Investment Funds This article examines the impact of an amendment to the Income Tax Act that aimed to prevent the so-called real estate funds, whose activities bear the characteristics of ordinary business activities, from applying a preferential tax rate. Only funds whose shares are publicly traded and have the required shareholder structure could newly apply this rate. In response to the legal amendment, several real estate funds have become regular joint stock companies. Funds motivated to maintain a preferential tax rate had their securities admitted to trading. However, it was only a formal fulfilment of the conditions of the law, as the average number of shareholders controlling these funds did not change. For several funds, the shareholder structure has also changed so that they can continue to apply a preferential tax rate. In addition, most of the funds that do not meet the conditions of the Act have manipulated the length of the accounting period by purposeful transformations (mergers, divisions, etc.) in order to postpone the application of the amended wording of the Act and thus gain time for an appropriate response.

Keywords: Investment funds; earnings management; mergers (search for similar items in EconPapers)
JEL-codes: G34 G38 M41 (search for similar items in EconPapers)
Date: 2022
References: Add references at CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://polek.vse.cz/doi/10.18267/j.polek.1347.html (text/html)
http://polek.vse.cz/doi/10.18267/j.polek.1347.pdf (application/pdf)
free of charge

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:prg:jnlpol:v:2022:y:2022:i:2:id:1347:p:135-157

Ordering information: This journal article can be ordered from
Redakce Politické ekonomie, Vysoká škola ekonomická, nám. W. Churchilla 4, 130 67 Praha 3
http://polek.vse.cz

DOI: 10.18267/j.polek.1347

Access Statistics for this article

Politická ekonomie is currently edited by Jiřina Bulisová

More articles in Politická ekonomie from Prague University of Economics and Business Contact information at EDIRC.
Bibliographic data for series maintained by Stanislav Vojir ().

 
Page updated 2022-05-10
Handle: RePEc:prg:jnlpol:v:2022:y:2022:i:2:id:1347:p:135-157