Cross-border mergers within the EU: proposals to remove the remaining tax obstacles
Gespeichert in:
| 1. Verfasser: | |
|---|---|
| Format: | Abschlussarbeit Buch |
| Sprache: | English |
| Veröffentlicht: |
Alphen aan den Rijn [u.a.]
Wolters Kluwer Law & Business, Kluwer Law International
2012
|
| Schriftenreihe: | EUCOTAX series on European taxation
33 |
| Schlagworte: | |
| Online-Zugang: | Inhaltsverzeichnis |
| Beschreibung: | XLII, 766 S. |
| ISBN: | 9789041138248 9041138242 |
Internformat
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| 100 | 1 | |a Broek, Harm van den |e Verfasser |4 aut | |
| 245 | 1 | 0 | |a Cross-border mergers within the EU |b proposals to remove the remaining tax obstacles |c by Harm van den Broek |
| 264 | 1 | |a Alphen aan den Rijn [u.a.] |b Wolters Kluwer Law & Business, Kluwer Law International |c 2012 | |
| 300 | |a XLII, 766 S. | ||
| 336 | |b txt |2 rdacontent | ||
| 337 | |b n |2 rdamedia | ||
| 338 | |b nc |2 rdacarrier | ||
| 490 | 1 | |a EUCOTAX series on European taxation |v 33 | |
| 502 | |a Teilw. zugl.: Nijmegen, Univ., Diss. | ||
| 610 | 2 | 7 | |a Europäische Union |0 (DE-588)5098525-5 |2 gnd |9 rswk-swf |
| 650 | 4 | |a Recht | |
| 650 | 4 | |a Steuer | |
| 650 | 4 | |a Consolidation and merger of corporations |x Law and legislation |z European Union countries | |
| 650 | 4 | |a Consolidation and merger of corporations |x Taxation |x Law and legislation |z European Union countries | |
| 650 | 0 | 7 | |a Internationale Fusion |0 (DE-588)4227349-3 |2 gnd |9 rswk-swf |
| 650 | 0 | 7 | |a Steuerrecht |0 (DE-588)4116614-0 |2 gnd |9 rswk-swf |
| 651 | 4 | |a Europäische Union. Mitgliedsstaaten | |
| 655 | 7 | |0 (DE-588)4113937-9 |a Hochschulschrift |2 gnd-content | |
| 689 | 0 | 0 | |a Europäische Union |0 (DE-588)5098525-5 |D b |
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Datensatz im Suchindex
| _version_ | 1820137059031973888 |
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IMAGE 1
TABLE OF CONTENTS
LIST OF ABBREVIATIONS XLI
PREFACE XLIII
CHAPTER 1 INTRODUCTION 1
1.1 REASON FOR THE RESEARCH 1
1.1.1 INCREASING POSSIBILITIES FOR CROSS-BORDER MERGERS 2 1.1.2
NECESSITY TO PROVIDE FOR ADEQUATE FISCAL TREATMENT 5 1.2 OBJECT OF
RESEARCH 6
1.2.1 DEFINITION OF CROSS-BORDER MERGERS 6
1.2.2 MERGERS UNDER THE THIRD COUNCIL DIRECTIVE 7
1.2.3 CROSS-BORDER MERGERS: CIVIL LAW 8
1.2.4 CROSS-BORDER MERGERS: TAX LAW 9
1.2.5 DIFFERENCE BETWEEN CIVIL LAW AND TAX LAW 10
1.2.6 CROSS-BORDER MERGERS FOR TREATY FREEDOM PURPOSES 10 1.2.7 RESEARCH
OBJECT: CROSS-BORDER MERGERS FOR TAX LAW PURPOSES 11
1.2.8 IN A EUROPEAN CONTEXT 11
1.2.9 IN THE FIELD OF DIRECT TAXES 12
1.2.10 TAX BURDENS AS USUAL CONSEQUENCES OF MERGERS 12 1.2.11 DOMESTIC
MERGER RELIEF SCHEMES 13
1.2.12 THE BOUNDARIES OF FISCAL JURISDICTION 13
1.2.13 CROSS-BORDER MERGER RELIEF SCHEMES 14
1.2.14 AIMS OF CROSS-BORDER MERGER RELIEF SCHEMES 14 1.2.15 STATEMENT OF
THE PROBLEM 15
IMAGE 2
TABLE OF CONTENTS
1.3 METHOD OF RESEARCH 1.3.1 SOURCES AND METHODS 1 3 2 CONTENTS OF THE
RESEARCH J
1.3.2.1 POSSIBLE MERGERS UNDER CIVIL LAW JO
1.3.2.2 FISCAL ARRANGEMENTS OFFERED BY THE MERGER DIRECTIVE 1.3.2.3
FISCAL ARRANGEMENTS OFFERED BY THE FUNDAMENTAL FREEDOMS 17
1.3.2.4 COUNTRY ANALYSES 17
1.3.2.5 PROPOSALS FOR COMMUNITARIAN SOLUTIONS 18
CHAPTER 2 MERGERS UNDER PRIVATE INTERNATIONAL LAW 1V 2.1 THE ESSENCE OF
PRIVATE INTERNATIONAL LAW 19
2.1.1 MERGER 19
2.1.2 MERGERS SUBJECT TO COMPANY LAW 20
2.1.3 CROSS-BORDER MERGERS 20
2.1.4 PRIVATE INTERNATIONAL LAW 22
2.2 INTERNATIONAL COMPANY LAW: REAL SEAT THEORY AND INCORPORATION THEORY
23
2.2.1 RECOGNITION LEGAL PERSONALITY 24
2.2.2 FOREIGN BRANCH 24
2.2.3 TRANSFER OF THE SEAT 24
2.2.4 THE REAL SEAT THEORY 26
2.2.5 THE INCORPORATION THEORY 26
2.3 PRIVATE INTERNATIONAL LAW AND CROSS-BORDER MERGERS 27
2.3.1 CLASH OF COMPETING STATUTES 27
2.3.2 THE THEORY OF GIINTHER BEITZKE 28
2.3.3 THE ADMISSIBILITY UNDER NATIONAL LAW OF CROSS-BORDER MERGERS 30
2.4 HARMONIZATION OF NATIONAL AND INTERNATIONAL COMPANY LAW? 30 2.4.1
TFEU AS BASIS FOR HARMONIZATION 30
2.4.2 TREATIES 31
2.4.3 DIRECTIVES 32
2.5 TREATY FREEDOMS AS BASIS FOR RECOGNITION AND HARMONIZATION 33 2.5.1
THE FREEDOM OF ESTABLISHMENT 33
2.5.2 ESTABLISHMENT OF A FOREIGN BRANCH 33
2.5.3 TRANSFER OF THE SEAT AND IUS STANDI IN LUDICIO 34
2.5.4 TRANSFER OF THE SEAT AND CONVERSION 35
25 5 CONCLUSION 35
CHAPTER 3 REGULATION AND DIRECTIVE ON THE EUROPEAN COMPANY (SE) 37 3.1
INTRODUCTION 37
3.1.1 HISTORY OF THE SE 3G
IMAGE 3
TABLE OF CONTENTS
3.1.2 OUTLINES OF THE SE 39
3.2 GENERAL PROVISIONS 40
3.2.1 INTRODUCTION 40
3.2.2 APPLICABLE LAW 40
3.2.3 THE CAPITAL OF AN SE 42
3.2.4 PLACE OF REGISTERED OFFICE AND HEAD OFFICE 42
3.2.5 TRANSFER OF THE SEAT 42
3.2.6 REGISTRATION OF AN SE 43
3.3 THE FORMATION OF THE SE 43
3.3.1 GENERAL PROVISIONS 43
3.3.1.1 HEAD OFFICES AND REGISTERED OFFICES 44
3.3.1.2 NATIONAL LAW APPLICABLE 44
3.3.1.3 LEGAL CONSEQUENCES FROM THE MOMENT OF REGISTRATION 44
3.3.2 FORMATION OF AN SE BY MERGER 45
3.3.2.1 INTRODUCTION 45
3.3.2.2 THE DEFINITION OF MERGER 45
3.3.2.2.1 THE THIRD COUNCIL DIRECTIVE 45
3.3.2.2.2 PARENT-SUBSIDIARY 'MERGERS' 46
3.3.2.2.3 SISTER MERGER 48
3.3.2.2.4 TRIANGULAR MERGER 49
3.3.2.2.5 MERGER BY ABSORPTION AND SIMULTANEOUS SEAT TRANSFER 49
3.3.2.2.6 CONCLUSION 49
3.3.2.3 THE MERGER PROCEDURE 49
3.3.2.4 LEGAL CONSEQUENCES MERGER 51
3.4 THE TRANSFER OF THE SEAT OF AN SE 51
3.5 THE STRUCTURE OF THE SE 52
3.5.1 INTRODUCTION 52
3.5.2 THE TWO-TIER SYSTEM 53
3.5.3 THE ONE-TIER SYSTEM 54
3.5.4 THE GENERAL MEETING 54
3.6 WINDING UP AND LIQUIDATION 55
3.7 DIRECTIVE 2001/86 ON EMPLOYEE INVOLVEMENT 56
3.7.1 INTRODUCTION 56
3.7.2 GENERAL PROVISIONS 58
3.7.3 POSSIBLE EMPLOYEE INVOLVEMENT ARRANGEMENTS 58
3.7.3.1 OUTCOME OF NEGOTIATION PROVISIONS 58
3.7.3.2 CONCURRENCE OF SE DIRECTIVE AND OTHER EMPLOYEE INVOLVEMENT
ARRANGEMENTS 60 3.7.4 PROCEDURE OF NEGOTIATIONS 61
3.7.4.1 INTRODUCTION 61
3.7.4.2 THE NEGOTIATIONS 61
3.7.4.3 THE AGREEMENT 62
XI
IMAGE 4
TABLE OF CONTENTS
3.7.5 STANDARD RULES 3.7.5.1 INTRODUCTION ~F
3.7.5.2 PARTICIPATION PROVISIONS AFTER MERGER 63
3.7.6 THE ANNEX CONTAINING THE STANDARD RULES 64
3.8 CONCLUSIONS
CHAPTER 4 THE TENTH COUNCIL DIRECTIVE *'
4.1 INTRODUCTION *Y
4.2 THE SCOPE OF THE DIRECTIVE 68
4.2.1 CROSS-BORDER MERGERS 68
4.2.2 QUALIFYING LEGAL BODIES 69
4.2.2.1 COMPANIES REFERRED TO BY ARTICLES 1 AND 2 69 4.2.2.2 NATIONAL
MERGER FACILITIES REQUIRED 70
4.2.2.3 COOPERATIVE SOCIETIES AND COLLECTIVE INVESTMENT COMPANIES 71
4.2.3 DEFINITION OF MERGER 71
4.2.3.1 EXCESS CASH PAYMENTS 72
4.3 THE MERGER PROCEDURE 73
4.4 THE EFFECTS OF THE MERGER 74
4.5 EMPLOYEE PARTICIPATION 75
4.5.1 PRIMACY OF NATIONAL PARTICIPATION PROVISIONS 75
4.5.2 SE PARTICIPATION ARRANGEMENTS AS EXCEPTION 76
4.5.3 APPLICABLE SE PARTICIPATION PROVISIONS 78
4.5.3.1 PRINCIPLES AND PROCEDURES OF THE SE REGULATION 78 4.5.3.2
PROVISIONS OF THE SE DIRECTIVE 79
4.5.3.2.1 PROCEDURAL ARRANGEMENTS 79
4.5.3.2.2 MATERIAL ARRANGEMENTS 79
4.5.4 PROVISIONS COMPLEMENTARY TO THE APPLICABLE SE PROVISIONS 80
4.5.4.1 COMPANIES MAY OPT FOR STANDARD RULES 80 4.5.4.2 EMPLOYEES MAY
OPT FOR NATIONAL ARRANGEMENTS 80
4.5.4.3 MEMBER STATES MAY REDUCE EMPLOYEE PARTICIPATION 81
4.5.4.4 COMPANY ADOPTS ADEQUATE LEGAL FORM 81 4.5.4.5 SUBSEQUENT
DOMESTIC MERGERS 81
4.5.5 POSSIBLE OUTCOMES OF THE DETERMINATION OF EMPLOYEE INVOLVEMENT
RULES 81
4.6 CONCLUSIONS 82
CHAPTER 5 CROSS-BORDER MERGERS BASED ON TREATY FREEDOMS 83
5.1 INTRODUCTION 83
5.2 THE SEVIC CASE 83
XN
IMAGE 5
5.3
5.2.1 5.2.2
TABLE OF CONTENTS
RESTRICTION JUSTIFICATION?
COMMENTS ON THE SEVIC CASE 5.3.1 5.3.2 DOES SEVIC REGARD MERGERS?
APPLICABILITY OF THE TREATY FREEDOMS 5.3.2.1 THE FREEDOM OF
ESTABLISHMENT 5.3.2.2 OTHER FORMS OF REORGANIZATION 5.3.2.3 OTHER FORMS
OF MERGER 5.3.2.4 OTHER TYPES OF LEGAL ENTITY 5.3.2.5 FREE MOVEMENT OF
CAPITAL AND MERGERS WITH
THIRD-STATE COMPANIES 5.3.2.5.1 MERGERS CONSTITUTE MOVEMENTS OF CAPITAL
5.3.2.5.2 THE CONCURRENCE OF
ESTABLISHMENT AND CAPITAL MOVEMENTS
5.3.2.5.3 STANDSTILL PROVISION
84 85 86 87 87 87 89 90 91
92
92
92 93
5.3.3 RESTRICTIONS OF THE FREE MOVEMENT 94
5.3.4 JUSTIFICATIONS 95
5.3.5 PROPORTIONALITY 97
5.3.5.1 GENERAL PROVISIONS OR CASE BY CASE? 97
5.3.5.2 ANTICIPATED APPLICATION OF TENTH DIRECTIVE? 98 5.4 TREATY
FREEDOMS AND THE TRANSFERRING COMPANY 99
5.4.1 INTRODUCTION 99
5.4.1.1 APPLICATION OF THE FREEDOM OF ESTABLISHMENT 99 5.4.1.2 SEVIC AS
A CASE OF RECOGNITION 99
5.4.2 THE ECJ'S CASE LAW ON TRANSFERS OF SEAT 100
5.4.2.1 DAILY MAIL 100
5.4.2.1.1 LITERATURE BEFORE CARTESIO 101
5.4.2.2 CARTESIO 103
5.4.2.2.1 LITERATURE ON TRANSFERS OF SEAT AFTER CARTESIO 104
5.4.2.3 MY OPINION ON TRANSFERS OF SEAT 108
5.4.3 THE ECJ'S CASE LAW ON CONVERSIONS, MERGERS AND DIVISIONS 109
5.4.3.1 LITERATURE AFTER CARTESIO ON CONVERSIONS, MERGERS AND DIVISIONS
109
5.4.3.1.1 CONVERSIONS 110
5.4.3.1.2 MERGERS AND DIVISIONS 111
5.4.3.2 MY OPINION ON OUTBOUND MERGERS AND DIVISIONS 113
5.4.3.2.1 DO TRANSFERRING COMPANIES EXERCISE THE FREEDOM OF
ESTABLISHMENT? 113
IMAGE 6
TABLE OF CONTENTS
5.4.3.2.2 AN APPEAL TO THE FREEDOM OF ESTABLISHMENT OF THE RECEIVING
COMPANY? 1 15
5.4.3.2.3 WOULD THE ECJ ALLOW A SECOND
EXCEPTION TO MEMBER STATES' AUTONOMY? H5
5.4.3.2.4 CONCLUSION I* 7
5.5 CONCLUSIONS 1 17
CHAPTER 6
THE MERGER DIRECTIVE IY
6.1 INTRODUCTION H"
6.1.1 TAX OBSTACLES AND RISKS OF CROSS-BORDER MERGERS 120 6.1.1.1 TAX
OBSTACLES AND RISKS OF MERGERS IN GENERAL 120 6.1.1.1.1 TRANSFERRING
COMPANY 120
6.1.1.1.2 RECEIVING COMPANY 121
6.1.1.1.3 SHAREHOLDERS OF THE TRANSFERRING COMPANY 121
6.1.1.2 SPECIFIC OBSTACLES TO CROSS-BORDER MERGERS 122 6.1.1.2.1
TRANSFERRING COMPANY 122
6.1.1.2.2 RECEIVING COMPANY 122
6.1.1.2.3 FOREIGN SHAREHOLDERS OF THE TRANSFERRING COMPANY 122
6.1.1.3 OBSTACLES TO MERGERS IN RESPECT OF POST-MERGER TAXATION 122
6.1.1.4 DISTORTIONS BETWEEN ARRANGEMENTS ON DOMESTIC AND ON CROSS-BORDER
MERGERS 123 6.1.2 INTRODUCTION TO THE MERGER DIRECTIVE 123
6.1.2.1 SCOPE 124
6.1 .2.1.1 THE NEED FOR HARMONIZED MERGER ARRANGEMENTS 124
6.1.2.1.2 THE BASIC PRINCIPLE OF THE MERGER DIRECTIVE 125
6.1.2.2 HISTORY 126
6.1.2.2.1 INTRODUCTION 126
6.1.2.2.2 THE 1967 PROGRAMME FOR THE HARMONIZATION OF DIRECT TAXES 127
6.1.2.2.2.1 THE FISCAL PROBLEMS CONCERNING
REORGANIZATIONS 127 6.1.2.2.2.2 POINTS OF INTEREST IN SEARCH OF
SOLUTIONS 128 6.1.2.2.2.3 DEFERRED COLLECTION
(MAIN TREATMENT) 128
XIV
IMAGE 7
6.1.2.3
6.1.2.2.3
6.1.2.2.4 6.1.2.2.5 6.1.2.2.6 6.1.2.2.7
AMENDMENTS
6.1.2.2.2.4
6.1.2.2.2.5
6.1.2.2.2.6
TABLE OF CONTENTS
ROLLOVER RELIEF (FIRST COMPLEMENTARY VARIANT)
REDUCED TAX RATE (SECOND COMPLEMENTARY VARIANT) FURTHER GUIDELINES FOR
MERGER ARRANGEMENTS
THE 1969 PROPOSAL FOR A MERGER DIRECTIVE 6.1.2.2.3.1 6.1.2.2.3.2
6.1.2.2.3.3 6.1.2.2.3.4
6.1.2.2.3.5
6.1.2.2.3.6
6.1.2.2.3.7
6.1.2.2.3.8
6.1.2.2.3.9
ECONOMIC I
SCOPE CAPITAL GAINS AND TAX-FREE RESERVES LOSS CARRY-OVER CAPITAL DUTY
AND TRANSFER TAX PARENT-SUBSIDIARY MERGERS
CAPITAL GAINS OF SHAREHOLDERS CONTRIBUTION OF ASSETS TRANSFER OF
PERMANENT ESTABLISHMENT PERMANENT TAXATION OF PERMANENT ESTABLISHMENTS
MD SOCIAL COMMITTEE
EUROPEAN PARLIAMENT THE PERIOD 1970-1990 FISCAL ASPECTS OF THE PROPOSED
STATUTE FOR COMPANY 6.1.2.2.7.1
6.1.2.2.7.2 6.1.2.2.7.3 6.1.2.2.7.4 6.1.2.2.7.5
THE EUROPEAN
THE 1970 PROPOSAL THE 1975 PROPOSAL THE 1989 PROPOSAL THE 1991 PROPOSAL
ADOPTION OF THE 2001 PROPOSAL
128
129
129
129 130
130 132
132
132
132
133
133
133 134 135 135
137 137 138 139 140
140 140
XV
IMAGE 8
TABLE OF CONTENTS
6.1.2.4 IMPLEMENTATION 143
6.1.2.4.1 DIRECT EFFECT? 145
6.1.2.5 INTERPRETATION 146
6.2 THE SCOPE OF THE MERGER DIRECTIVE 149
6.2.1 QUALIFYING COMPANIES 149
6.2.1.1 INTRODUCTION 149
6.2.1.1.1 QUALIFYING OPERATIONS AND COMPANIES 149
6.2.1.1.2 FOUR CONDITIONS 150
6.2.1.1.3 EXCEPTION FOR TRANSFERS OF SEAT 151 6.2.1.2 COMPANY FORMS
LISTED IN THE ANNEX 152
6.2.1.2.1 HISTORY 152
6.2.1.2.2 EXTENSION OF THE ANNEX UNDER DIRECTIVE 2005/19 152
6.2.1.2.3 THE POSITION OF THE SE IN 2004 AND 2005 154
6.2.1.2.4 TRANSPARENT AND HYBRID COMPANIES 155
6.2.1.2.5 CONNECTION WITH SE REGULATION AND TENTH DIRECTIVE 156
6.2.1.2.5.1 SE REGULATION 156
6.2.1.2.5.2 TENTH COUNCIL
F. T DIRECTIVE 157
6.2.1.3 RESIDENT FOR TAX PURPOSES 1 5 8 6.2.1.4 SUBJECT TO CORPORATE
INCOME TAX 159
6.2.1.4.1 INTRODUCTION I Q
6-2.1.4.2 SUBJECT TO TAX J59
L'L\ A A W I T H O U T AN OPTION 161
6.2.1.4.4 WITHOUT AN EXEMPTION 163
6.2.1.4.4.1 NETHERLANDS FISCAL INVESTMENT VEHICLE (FBI) 163
62 145 " L 4 A2 HISTORY 1 65
62 1 S R R E X A N U N A T I ON OF ARTICLE 3(C) 167
6.2-1.5 NJPAN.ESTATWOORMOREMEJRS.A.ES 168 62' F2 ^ NTRODUCTION 168 O.Z.
1.5.2 COMPANY FROM WHICH MEMBER STATE? 1 69
6.2.1.5.2.1 MEMBER STATE OF
, , . . INCORPORATION? 169
0.2.1.5.2.2 MEMBER STATE OF TAX RESIDENCE? 170
6.2.1.5.2.3 MEMBER STATE OF LIABILITY TO TAX? 170
XVI
IMAGE 9
6.2.2
MERGERS 6.2.2.1
6.2.2.2
6.2.1.5.3
6.2.1.5.4
INTRODUCTION 6.2.2.1.1
6.2.2.1.2
6.2.2.1.3 THREE TYPES 6.2.2.2.1 6.2.2.2.2
6.2.2.2.3
6.2.2.2.4
6.2.2.2.5 6.2.2.2.6 6.2.2.2.7
TABLE OF CONTENTS
6.2.1.5.2.4 ONE COMPANY OF SEVERAL MEMBER STATES? 6.2.1.5.2.5 MY
OPINION:
MEMBER STATE OF TAX RESIDENCE
6.2.1.5.2.6 CONCLUSIONS REORGANIZATIONS INVOLVING MORE THAN TWO
COMPANIES 6.2.1.5.3.1 SEVERAL COMPANIES
FROM THE SAME MEMBER STATE
6.2.1.5.3.2 THE CREATION OF AN SE BY MEANS OF A MERGER 6.2.1.5.3.3
THIRD-STATE
COMPANIES
6.2.1.5.3.4 NON-QUALIFYING COMPANIES FROM MEMBER STATES
DOMESTIC MERGERS VERSUS CROSS- BORDER MERGERS
GENERAL 6.2.2.1.1.1 HISTORY THE MAXIMUM OF 10% CASH PAYMENTS 6.2.2.1.2.1
10% OF THE NOMINAL
VALUE OR OF THE MARKET VALUE?
THE ISSUE OF SHARES OF MERGER MERGER BY ACQUISITION MERGER BY FORMATION
OF A NEW
COMPANY UPSTREAM PARENT-SUBSIDIARY MERGERS DOWNSTREAM PARENT-SUBSIDIARY
MERGERS SISTER (OR SIDESTEP) MERGERS TRIANGULAR (OR GROUP) MERGER
MERGERS WITH CASH PAYMENTS EXCEEDING 10%
171
171 175
175
176
177
178
179
179 179 179 179 181
181
182 183 184 184
184
185
186 187 187
188
XVLL
IMAGE 10
TABLE OF CONTENTS
6.2.2.2.8 TRANSFERRING COMPANY CONTINUES TO EXIST 1 90
6.2.2.2.9 CONCLUSIONS CONCERNING THE
MERGER DEFINITION 191
191
6.3 SYSTEM OF PREVENTION OF TAXATION 7
6J.1 INTRODUCTION Q
6.3.2 CAPITAL GAINS J JJ
6.3.2.1 INTRODUCTION I YZ
6.3.2.2 HISTORY J93
6.3.2.2.1 1969 DRAFT ARTICLE 4 193
6.3.2.3 PREAMBLE MERGER DIRECTIVE 197
6.3.2.4 DEFINITION OF CAPITAL GAINS 198
6.3.2.4.1 VALUE FOR TAX PURPOSES 199
6.3.2.4.2 REAL VALUE 200
6.3.2.4.3 CAPITAL LOSSES 200
6.3.2.4.4 RECAPTURE OF DEPRECIATION DEDUCTIONS 202
6.3.2.4.5 TYPES OF ASSETS 202
6.3.2.5 FACILITY ON BEHALF OF THE TRANSFERRING COMPANY 203 6.3.2.6
REQUIREMENT OF A REMAINING PERMANENT ESTABLISHMENT 203
6.3.2.6.1 DEFINITION OF'PERMANENT ESTABLISHMENT' 205
6.3.2.6.1.1 UNCLEAR ISSUES 205 6.3.2.6.1.2 PLAY A PART IN GENERATING
PROFITS 205 6.3.2.6.1.3 CONSIDERATIONS AS TO
THE PERMANENT ESTABLISHMENT REQUIREMENT 207
6.3.2.6.1.4 VARIOUS OPINIONS 207 6.3.2.6.1.5 MY OPINION 210
6.3.2.6.2 TRANSFER OF A FOREIGN PERMANENT ESTABLISHMENT 210
6.3.2.6.3 AN ADEQUATE CRITERION? 211
6.3.2.6.3.1 TAX TREATIES PRECLUDE POST- MERGER TAXATION 212 6.3.2.6.3.2
CONTINUING
JURISDICTION WITHOUT PERMANENT ESTABLISHMENT 212
6.3.2.7 FUTURE DEPRECIATIONS, GAINS AND LOSSES 212 6.3.2.7.1 APPLICABLE
RULES AND BOOK VALUES 213
IMAGE 11
6.3.3
6.3.2.8 6.3.2.9
PROVISIONS 6.3.3.1 6.3.3.2 6.3.3.3
6.3.3.4
6.3.3.5 6.3.3.6
6.3.3.7 6.3.3.8 TRANSFER OI
TABLE OF CONTENTS
632.1.1 FUTURE CHANGE OF 'RULES' 6.3.2.7.3 ACCELERATED DEPRECIATION
6.3.2.7.4 SPECIAL REGIMES
OPTION FOR COMPUTATION ON A DIFFERENT BASIS STEP-UP IN THE STATE OF THE
RECEIVING COMPANY? 6.3.2.9.1 DOMESTIC TAX LAW 6.3.2.9.2 IBFD REPORT ON
SES 6.3.2.9.3 INTERNATIONAL TAX LAW
6.3.2.9.4 EXAMPLE 6.3.2.9.5 DOES THE MERGER DIRECTIVE REQUIRE THE OLD
BOOK VALUES TO BE CONTINUED? 6.3.2.9.6 DOES THE MERGER DIRECTIVE
ALLOW CONTINUING THE OLD BOOK VALUES?
AND RESERVES INTRODUCTION THE DEFINITION OF PROVISIONS AND RESERVES
REQUIREMENT OF A REMAINING PERMANENT ESTABLISHMENT NOT DERIVING FROM
PERMANENT ESTABLISHMENTS ABROAD
UNDER THE SAME CONDITIONS REGISTRATION IN HOME STATE OF RECEIVING
COMPANY ANTI-ABUSE MEASURES CONCLUSIONS : LOSSES
214 214 214 215
216 216 217 218
219
222
223 224 224 225
226
226 227
228 228 229 229 6.3.4
6.3.4.1 INTRODUCTION 229
6.3.4.1.1 HISTORY 230
6.3.4.2 THE MAIN CHARACTERISTICS OF ARTICLE 6 232
6.3.4.2.1 THE PERMANENT ESTABLISHMENT REQUIREMENT 233
6.3.4.2.2 LOSSES MAY NOT YET BE EXHAUSTED 233
6.3.4.2.3 OPERATIONS COVERED 234
6.3.4.2.4 OLD LOSSES OF RECEIVING COMPANY AND ACQUIRING COMPANY 234
6.3.4.3 DOMESTIC TREATMENT OF CROSS-BORDER REORGANIZATIONS 234
6.3.4.4 DEFINITION OF LOSSES 236
6.3.4.4.1 AN ADEQUATE DEFINITION OF LOSSES 238 6.3.4.5 PARTIAL TRANSFER
OF LOSSES 239
XIX
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TABLE OF CONTENTS
6.3.4.6 LOSSES OF A FOREIGN PERMANENT ESTABLISHMENT 240 6.3.4.6.1
DOMESTIC MERGERS 240
6.3.4.6.2 CROSS-BORDER MERGERS 240
6.3.4.7 THE TREATMENT OF LOSS TRANSFERS BY THE STATE OF THE RECEIVING
COMPANY 242
6.3.4.7.1 WORLDWIDE TAX BASE 243
6.3.4.7.2 RELIEF FOR DEEMED TAXATION 244 6.3.4.8 RECOMMENDATIONS AND
PROPOSALS 244
6.3.5 PARTICIPATION EXEMPTION 245
6.3.5.1 INTRODUCTION 245
6.3.5.1.1 HISTORY 247
6.3.5.2 HOLDING REQUIREMENT 248
6.3.5.3 TAX BENEFITS 249
6.3.5.4 CAPITAL LOSSES 250
6.3.5.5 DOWNSTREAM MERGERS 251
6.3.6 THE ALLOTMENT OF SHARES 252
6.3.6.1 INTRODUCTION 252
6.3.6.1.1 HISTORY 253
6.3.6.2 ALLOTMENT OF SECURITIES 255
6.3.6.2.1 ROLL-OVER RELIEF 255
6.3.6.2.2 RECAPTURE OF DEPRECIATIONS 256 6.3.6.2.3 DIVIDEND WITHHOLDING
TAX 256 6.3.6.2.4 SHAREHOLDERS COVERED 257
6.3.6.2.5 CASH PAYMENTS 257
6.3.6.2.5.1 BUY-OUTOF SHAREHOLDERS? 258
6.3.6.2.5.2 COMPUTATION OF TAXABLE CASH PAYMENTS 259
6.3.6.3 CONTINUATION OF FISCAL VALUE OF SHARES 260 6.3.6.3.1
SHAREHOLDERS OPT FOR A STEP-UP 261 6.3.6.3.2 VALUE FOR TAX PURPOSES
AFTER A CASH PAYMENT 261
, TRANSFER OF SECURITIES TRANSPARENT AND HYBRID SHAREHOLDERS 6.3.6.5.1
NEED FOR SJ 6.3.6.5.2 COMMENTS
6 *? FT A O U AY MEM
6 VFI S ^ S E Q U E NT TRA "SFER OF SECURITIES 262
TRANSIENT AND HYBRID SHAREHOLDERS 264 6-3.6.5.1 NEED FOR SPECIFIC
BENEFITS 264 V-UIIIMENIS 265
6.3.6.5.3 FUTURE TAXATION 266
6.3.6.6 CONCLUSIONS AND RECOMMENDATIONS 267 6.3.7 TRANSFER OF PERMANENT
ESTABLISHMENTS 267
6.3.7.1 INTRODUCTION 267
6.3.7.1.1 HISTORICAL BACKGROUND 268
6.3.7.1.1.2 SECTION 6.3.7: OUTLINE 270
XX
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TABLE OF CONTENTS
6.3.7.2 MEMBER STATE OF THE TRANSFERRING COMPANY 270 6.3.7.2.1 FINAL
TAXATION OF FOREIGN PENNANENT ESTABLISHMENT 270
6.3.7.2.1.1 DOES ARTICLE 10(2) ONLY APPLY TO MEMBER STATES APPLYING THE
CREDIT
SYSTEM? 271
6.3.7.2.1.2 WHICH PROFITS AND CAPITAL GAINS MAY BE TAXED? 273
6.3.7.2.1.3 RELIEF FOR DEEMED FOREIGN TAXATION 275
6.3.7.2.2 RECAPTURE OF LOSSES 276
6.3.7.2.3 LOSS OF FISCAL JURISDICTION 277
6.3.7.3 MEMBER STATE OF PERMANENT ESTABLISHMENT 279 6.3.7.4 MEMBER STATE
OF RECEIVING COMPANY 280
6.3.7.5 PERMANENT ESTABLISHMENT IN STATE OF RECEIVING COMPANY (TWO-STATE
OPERATION) 280
6.3.7.5.1 DID DIRECTIVE 2005/19 RESOLVE THE ISSUE? 283
6.4 FORMAL ASPECTS 284
6.5 ANTI-ABUSE MEASURES 286
6.5.1 INTRODUCTION 286
6.5.1.1 HISTORY 286
6.5.1.2 ARTICLE 15 288
6.5.2 TAX EVASION AND TAX AVOIDANCE 289
6.5.2.1 DEFINITION OF TAX EVASION AND TAX AVOIDANCE 289 6.5.2.1.1 RAPID
RESALE OF SHARES 289
6.5.2.1.2 TRANSFER OF LOSS COMPENSATION RIGHTS 290
6.5.2.1.3 APPLICATION OF TAX TREATIES 291
6.5.2.1.4 WHICH TAX? 291
6.5.2.1.5 LEGITIMATE TAX PLANNING 292
6.5.2.1.6 COMPARISON WITH THE ABUSE OF FUNDAMENTAL TREATY FREEDOMS 292
6.5.2.2 ONE OF THE PRINCIPAL OBJECTIVES 292
6.5.2.3 THE ABSENCE OF VALID COMMERCIAL REASONS AND PRESUMED AVOIDANCE
293
6.5.3 CASE LAW ECJ 295
6.5.3.1 THE LEUR-BLOEM CASE 296
6.5.3.2 THE KOFOED CASE 298
6.5.3.3 THE A.T. CASE 301
6.5.3.4 THE ZWIJNENBURG CASE 304
XXI
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TABLE OF CONTENTS
6.5.4 REDUCTION OF EMPLOYEE REPRESENTATION 309
6.5.4.1 INTRODUCTION ;F 09
6.5.4.1.1 HISTORY 3 1
6.5.4.2 REDUCTION OF EMPLOYEE REPRESENTATION 313 6.5.4.3 TRANSITIONAL
PROVISION 315
6.5.4.3.1 SE DIRECTIVE 316
6.5.4.3.2 TENTH DIRECTIVE 317
6.5.4.4 CONCLUSION 318
6.5.5 WITHDRAWAL OF BENEFITS 319
6.6 REMAINING TAX OBSTACLES 320
6.6.1 GENERAL REMARKS 320
6.6.1.1 TRANSFERRING COMPANY 320
6.6.1.2 RECEIVING COMPANY 320
6.6.1.3 SHAREHOLDERS TRANSFERRING COMPANY 320 6.6.1.4 TAXATION OF THE
COMPANY RESULTING FROM THE MERGER 321
6.6.1.5 CONCLUSIONS 321
6.6.2 THE REMAINING TAX OBSTACLES 321
CHAPTER 7 TAX ARRANGEMENTS AND TREATY FREEDOMS 325
7.1 INTRODUCTION 325
7.2 APPLICABILITY OF TREATY FREEDOMS 326
7.2.1 INTRODUCTION 326
7.2.2 THE RECEIVING COMPANY (INBOUND MERGERS) 328
7.2.3 THE TRANSFERRING COMPANY (OUTBOUND MERGERS) 329 7.2.4 SHAREHOLDERS
332
7.2.5 CREDITORS 334
7.3 TREATY FREEDOMS AND TAXATION OF MERGERS 335
7.3.1 INTRODUCTION 335
7.3.2 PERSONAL SCOPE OF MERGER ARRANGEMENTS 336
7.3.2.1 EU LEGAL BODIES WHICH ARE NOT LISTED IN THE ANNEX 336
7.3.2.1.1 GAT DE FRANCE 336
7.3.2.2 EU COMPANIES WHICH ARE EXEMPT OR HAVE THE OPTION OF BEING EXEMPT
337
7.3.2.2.1 ABERDEEN 337
7.3.2.2.2 EXEMPT COMPANIES 338
7.3.2.2.3 THE OPTION OF BEING EXEMPT 338 7.3.2.3 COMPANIES FROM EEA
STATES 339
7.3.3 DEFINITION OF MERGERS 341
7.3.3.1 MERGERS WITH CASH PAYMENTS EXCEEDING 10% 341 7.3.3.2 SISTER
MERGERS AND TRIANGULAR MERGERS 343 7.3.4 EXIT TAXATION TRANSFERRING
COMPANY 345
7.3.4.1 EXIT TAXATION MIGRATING COMPANY 345
XXII
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TABLE OF CONTENTS
7.3.4.1.1 EU INSTITUTIONS AND EXIT TAXATION IN THE CASE OF TRANSFERS OF
SEAT 351
7.3.4.1.2 CASES PENDING BEFORE THE ECJ 353 7.3.4.1.3 MY VIEW 354
7.3.4.2 EXIT TAXATION ON MERGERS 354
7.3.4.2.1 EU INSTITUTIONS AND EXIT TAXATION IN THE CASE OF MERGERS 355
7.3.4.2.2 EXIT TAXATION NOTWITHSTANDING THE MERGER DIRECTIVE 355
7.3.4.2.3 FAILING GROUNDS FOR JUSTIFICATION 356 7.3.4.2.3.1 THE LOSS OF
TAX REVENUES 356
7.3.4.2.3.2 THE PREVENTION OF TAX AVOIDANCE 357
7.3.4.2.3.3 A THREE-FOLD GROUND 357
7.3.4.2.3.4 THE COHESION OF THE TAX SYSTEM 358
7.3.4.2.4 SUCCESSFUL JUSTIFICATION: THE DIVISION OF TAXING POWERS IN
LINE WITH TERRITORIALITY 359
7.3.4.2.4.1 THE OBJECTIVE OF THE EXIT TAX ACCORDING TO PARLIAMENTARY
HISTORY 360
7.3.4.2.4.2 COMPARISON WITH EXIT TAXATION OF MIGRATING INDIVIDUALS 362
7.3.4.2.4.3 COMPARISON WITH EXIT TAXATION IN THE CASE OF A COMPANY'S
TRANSFER OF SEAT 362
7.3.4.2.4.4 APPROPRIATE TO ATTAIN THE OBJECTIVE? 363
7.3.4.2.4.5 PROPORTIONATE MEASURES? 363
7.3.4.2.4.5 CONCLUSIONS 367
7.3.5 STEP-UP IN STATE OF RECEIVING COMPANY 368
7.3.5.1 MERGER DIRECTIVE 368
7.3.5.2 HAMPERING OF THE FREEDOM OF ESTABLISHMENT? 369 7.3.5.3 THE RIGHT
TO AVOIDANCE OF DOUBLE TAXATION? 370
XXUI
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TABLE OF CONTENTS
7.3.5.4 THE PROHIBITION OF CFC LEGISLATION: TRANSFER PRICING RULES 373
7.3.5.4.1 TRANSFER PRICING RULES 375
7.3.5.5 LATENT IMMIGRATION TAX 376
7.3.5.6 DOUBLE TAXATION AFTER SHARE EXCHANGE 377 7.3.5.7 COMPARISON WITH
IMMIGRATION OF INDIVIDUALS AND OF COMPANIES 378
7.3.5.8 EUROPEAN COUNCIL RESOLUTION 383
7.3.5.9 JUSTIFICATIONS? 384
7.3.5.10 CONCLUSIONS 385
7.3.6 TRANSFER OF LOSSES 386
7.3.6.1 INTRODUCTION 386
7.3.6.2 NO TRANSFER OF LOSSES IN EITHER DOMESTIC OR CROSS-BORDER MERGERS
386
7.3.6.3 MERGERS WITH EEA COMPANIES 387
7.3.6.4 PERMANENT ESTABLISHMENT REQUIREMENT 387 7.3.6.5 RECOGNITION OF
FOREIGN LOSS CARRY-OVER 387 7.3.6.6 CARRY-OVER OF LOSSES TO THE STATE OF
THE RECEIVING COMPANY 389
7.3.6.7 EVAPORATION OF LOSS COMPENSATION OF RECEIVING COMPANY 393
7.3.6.8 PARTIAL REALIZATION OF LOSSES 393
7.3.7 THE TRANSFER OF PERMANENT ESTABLISHMENTS 394
7.3.7.1 CAPITAL GAINS AND WINDING UP OF RESERVES OF A PERMANENT
ESTABLISHMENT 394
7.3.7.2 RECAPTURE OF LOSSES OF PERMANENT ESTABLISHMENT 395
7.3.7.3 PERMANENT ESTABLISHMENTS IN EEA STATES 398 7.3.7.4 PERMANENT
ESTABLISHMENT LOCATED IN STATE OF RECEIVING COMPANY 398
7.3.8 TAXATION OF FOREIGN SHAREHOLDERS 399
7.3.9 PARTICIPATION EXEMPTION 400
7.3.9.1 PARTICIPATIONS SMALLER THAN 10% 400
7.3.9.2 DOWNSTREAM MERGERS 401
7.3.10 TAXATION OF CREDITORS 401
7.3.11 APPLICATION OF SANCTIONS 402
7.3.12 REDUCTION OF EMPLOYEE REPRESENTATION 403
73.13 DIVIDEND WITHHOLDING TAX 404
7.3.14 CONCLUSIONS 405
CHAPTER 8 THE NETHERLANDS 407
8.1 CIVIL LAW ON CROSS-BORDER MERGERS 407
8.1.1 DOMESTIC REORGANIZATIONS 407
8.1.2 CROSS-BORDER REORGANIZATIONS 408
XXIV
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TABLE OF CONTENTS
8.1.2.1 EU TREATY FREEDOMS 409
8.1.2.2 DISTRICT COURT AMSTERDAM IN 2007 411
8.1.3 PRIVATE INTERNATIONAL LAW 412
8.1.4 SE REGULATION AND DIRECTIVE 412
8.1.4.1 ACT ON THE ENFORCEMENT OF THE REGULATION ON THE EUROPEAN COMPANY
413
8.1.4.2 ACT ON EMPLOYEE INVOLVEMENT WITHIN THE EUROPEAN COMPANY 413
8.1.4.3 THE LACK OF SUCCESS OF THE NETHERLANDS SE 413 8.1.5 TENTH
COUNCIL DIRECTIVE 414
8.1.5.1 IMPLEMENTATION ACT OF 27 JUNE 2008 415
8.1.5.2 COMPANIES FROM EU AND EEA MEMBER STATES 415 8.1.5.3 QUALIFYING
LEGAL BODIES 415
8.1.5.4 EXCLUSION OF COOPERATIVE SOCIETIES 416
8.1.5.5 INCLUSION OF INVESTMENT VEHICLES 417
8.1.5.6 PROHIBITION OF CROSS-BORDER MIXED MERGERS 417 8.1.5.7 QUALIFYING
MERGERS 418
8.1.5.7.1 TRIANGULAR MERGERS 418
8.1.5.7.2 MIXED MERGERS 418
8.1.5.7.3 DOMESTIC ASPECTS OF CROSS- BORDER MERGERS 418
8.1.5.7.4 BUY-OUT OF SHAREHOLDERS 418
8.2 FISCAL ASPECTS OF MERGERS 419
8.2.1 INTRODUCTION 419
8.2.2 THE THREE DIFFERENT REGIMES FOR MERGING COMPANIES 420 8.2.3
DEVELOPMENTS IN TIME OF THE MERGER ARRANGEMENTS 420 8.2.4 SCOPE OF
MERGER ARRANGEMENTS 423
8.2.4.1 MERGER OPERATIONS: OBJECTIVE SCOPE 423
8.2.4.1.1 MERGERS UNDER THE CIVIL LAW CODE 424
8.2.4.1.1.1 MERGER BY ACQUISITION 425
8.2.4.1.1.2 MERGER BY CREATION OF A NEW LEGAL ENTITY 425
8.2.4.1.1.3 UPSTREAM MERGER 425 8.2.4.1.1.4 DOWNSTREAM MERGER 426
8.2.4.1.1.5 TRIANGULAR MERGER 427 8.2.4.1.1.6 SISTER MERGER 427
8.2.4.1.1.7 MIXED MERGERS 427 8.2.4.1.1.8 SE CROSS-BORDER MERGERS 427
8.2.4.1.1.9 CROSS-BORDER MERGERS 428
XXV
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TABLE OF CONTENTS
8.2.4.L2 MERGERS UNDER FOREIGN LAW 428 8.2.4.1.2.1 FORMER TREATMENT 428
8.2.4.1.2.2 PRESENT TREATMENT 429 8.2.4.2 LEGAL ENTITIES: SUBJECTIVE
(PERSONAL) SCOPE 430
8.2.4.2.1 TAXPAYERS 431
8.2.4.2.2 ESTABLISHED WITHIN THE EU OR EEA 431 8.2.4.2.3 NON-QUALIFYING
EU OR EEA COMPANIES 432
8.2.4.2.4 THIRD-STATE COMPANIES 433
8.2.5 THE TRANSFER MODEL 433
8.2.5.1 DRAFT PROPOSAL FOR A LIQUIDATION MODEL 434 8.2.6 RETROACTIVE
EFFECT 434
8.2.6.1 LAW OF PROPERTY AND COMPANY LAW 434
8.2.6.2 ACCOUNTING 435
8.2.6.3 TAX LAW 435
8.2.6.4 LIMITATION RETROACTIVITY IN THE CASE OF FOREIGN OR CROSS-BORDER
MERGERS 436
8.3 TRANSFERRING COMPANY 437
8.3.1 INTRODUCTION 437
8.3.2 TAXABLE MERGERS 437
8.3.2.1 TRANSFER OF ASSETS AT FAIR MARKET VALUE 437 8.3.2.1.1 DEEMED
DISPOSAL 438
8.3.2.1.1.1 TAXATION OF CAPITAL GAINS 438
8.3.2.1.1.2 RECAPTURES AND OTHER FISCAL OBLIGATIONS 439
8.3.2.1.2 DEEMED CESSATION 439
8.3.2.1.2.1 CONCLUSION 439
8.3.2.1.3 FICTION OF BEING LINKED 440
8.3.2.2 PENSION PROVISIONS 441
8.3.2.3 TRANSFER PROFITS AND CESSATION PROFITS 441 8.3.2.3.1 DEPRECIATED
DEBT CLAIMS AND CORRESPONDING DEBTS 442
8.3.2.4 NO TRANSFER OF LOSSES 443
8.3.2.5 FISCAL PROVISIONS AND RESERVES 445
8.3.2.6 RECAPTURES, SANCTIONS AND OTHER FISCAL OBLIGATIONS 445
8.3.2.6.1 NO PARTICIPATION EXEMPTION TO THE AMOUNT OF FORMER LOSSES
(ARTICLE 13C CITA) 446
8.3.2.6.2 RECAPTURE OF DEPRECIATIONS OF PARTICIPATIONS (FORMER ARTICLE
13CACITA) 447
XXVI
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TABLE OF CONTENTS
8.3.3
8.3.2.7
8.3.2.8
8.3.2.9
STATUTORY 8.3.3.1 8.3.3.2
8.3.2.6.3
8.3.2.6.4
8.3.2.6.5
8.3.2.6.6
8.3.2.6.7
8.3.2.6.8
8.3.2.6.9
RECAPTURE OF FORMER REORGANIZATION BENEFITS (ARTICLE 14(4) OR 14A(6)
CITA) REVALUATION OF ASSETS AFTER ENDING GROUP REGIME
(ARTICLE 15AI CITA) DISINVESTMENT PENALTY (ARTICLE 3.47 ITA) 8.3.2.6.5.1
INVESTMENT
DEDUCTION
DISPOSAL OF DEPRECIATED DEBT CLAIM (ARTICLE 13B CITA) CONTRIBUTION OF
DEPRECIATED DEBT CLAIM (ARTICLE 13BA CITA)
SPECIFIC THIN CAPITALIZATION ARRANGEMENTS (ARTICLE 10A CITA) LIQUIDATION
LOSS (ARTICLE 13D CITA) FOREIGN PERMANENT ESTABLISHMENT
8.3.2.7.1
8.3.2.7.2
FORMER LOSSES OF PERMANENT ESTABLISHMENT AVOIDANCE OF DOUBLE TAXATION
FOREIGN PERMANENT ESTABLISHMENT AND OUTBOUND MERGER NETHERLANDS
PERMANENT ESTABLISHMENT OF FOREIGN TRANSFERRING COMPANY 8.3.2.9.1
8.3.2.9.2 MERGER RELIEF INTRODUCTION
EEA MERGERS THIRD-STATE MERGERS
THE REQUIREMENTS FOR STATUTORY MERGER RELIEF 8.3.3.2.1
8.3.3.2.2
8.3.3.2.3
8.3.3.2.4
SAME FISCAL REGIMES APPLY 8.3.3.2.1.1 CROSS-BORDER MERGERS NO LOSS
COMPENSATION 8.3.3.2.2.1 CROSS-BORDER
MERGERS
NO RELIEF FOR DOUBLE TAXATION ON FOREIGN PROFITS 8.3.3.2.3.1
CROSS-BORDER MERGERS
NO REGIME FOR PATENTS (INNOVATIEBOX-REGIME) 8.3.3.2.4.1 CROSS-BORDER
MERGERS
448
448
449
449
450
451
453
454 454
455 455
456
456 456 457 457 457 458 459
460 461
462
464
464
464
465
XXVU
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TABLE OF CONTENTS
8.3.3.2.5 NO LOW TAXED PASSIVE PARTICIPATIONS 465
8.3.3.2.5.1 CROSS-BORDER MERGERS 466
8.3.3.2.6 FUTURE TAXATION IS SAFEGUARDED 466 8.3.3.2.6.1 CROSS-BORDER
MERGERS 467
8.3.3.2.7 MERGER NOT PRIMARILY AIMED AT AVOIDING OR DEFERRING TAXATION
468 8.3.3.2.7.1 CROSS-BORDER MERGERS 469
8.3.3.3 FISCAL TREATMENT OF THE TRANSFERRING COMPANY UNDER STATUTORY
MERGER RELIEF 470
8.3.3.4 CLAIMS ON PARTICIPATIONS IN PARENT-SUBSIDIARY MERGER 471
8.3.3.5 INTERNATIONAL ASPECTS 471
8.3.3.5.1 MERGER BETWEEN FOREIGN COMPANIES WITH NETHERLANDS PERMANENT
ESTABLISHMENT 471 8.3.3.5.2 FOREIGN COMPANY WITH
NETHERLANDS PERMANENT ESTABLISHMENT MERGES INTO NETHERLANDS COMPANY 472
8.3.3.5.3 OUTBOUND MERGER OF COMPANY IN POSSESSION OF EU PERMANENT
ESTABLISHMENT 472
8.3.4
8.3.3.6 8.3.3.7 MERGER 8.3.4.1
8.3.4.2
LOSS COMPENSATION RIGHTS THE REQUEST RELIEF ON REQUEST INTRODUCTION
THE (MODEL) CONDITIONS 8.3.4.2.1 CONSOLIDATION OF ACCOUNTS RECEIVABLE
AND PAYABLE 8.3.4.2.2 LOSS COMPENSATION, SEPARATE
ACCOUNTING, FOREIGN RESULTS AND SOURCE TAX 8.3.4.2.3 CAPITAL GAINS ON
PARTICIPATIONS WHICH CEASE TO EXIST
8.3.4.2.4 RECAPTURES ON PARTICIPATIONS WHICH CEASE TO EXIST 8.3.4.2.5
LATENT LIQUIDATION LOSSES 8.3.4.2.6 LIMITATION OF FISCAL JURISDICTION
ALL 473 473 473
474
475
476
478
479 479 480
8.3.4.3 FISCAL TREATMENT OF THE TRANSFERRING COMPANY UNDER MERGER RELIEF
ON REQUEST 481
XXVJH
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TABLE OF CONTENTS
8.3.4.4 CLAIMS ON PARTICIPATIONS IN PARENT-SUBSIDIARY MERGER 481
8.3.4.5 INTERNATIONAL ASPECTS 481
8.3.4.6 LOSS COMPENSATION RIGHTS 481
8.3.4.7 THE REQUEST 482
8.4 RECEIVING COMPANY 483
8.4.1 INTRODUCTION 483
8.4.2 TAXABLE MERGERS 483
8.4.2.1 BOOK VALUE RECEIVED ASSETS AND LIABILITIES 483 8.4.2.1.1 ASSETS
RECEIVED FROM A TAX-EXEMPT ENTITY 484
8.4.2.1.2 INBOUND MERGER 485
8.4.2.1.3 INBOUND MERGER INCLUDING A DOMESTIC PERMANENT ESTABLISHMENT
486
8.4.2.1.4 DOMESTIC MERGER WITH FOREIGN PERMANENT ESTABLISHMENT 487
8.4.2.2 NO TAKE-OVER OF FISCAL POSITION 487
8.4.2.3 FISCAL RESERVES 488
8.4.2.4 INVESTMENT ALLOWANCE 488
8.4.2.5 REINVESTMENT RESERVE 488
8.4.2.6 SHARES RECEIVED 489
8.4.2.7 DEDUCTIBILITY INTEREST PAYMENTS 489
8.4.2.8 RECAPTURE OF REVALUATION RESERVE 490
8.4.2.9 RECAPTURE OF DEPRECIATION OF DEBT CLAIM 490 8.4.2.10 NO
TAKE-OVER OF LATENT LIQUIDATION LOSSES 491 8.4.2.11 LOSS COMPENSATION
RIGHTS 491
8.4.2.11.1 LOSSES OF RECEIVING COMPANY 491 8.4.2.12 AVOIDANCE OF DOUBLE
TAXATION 492
8.4.2.13 CAPITAL GAINS ON SHAREHOLDING IN UPSTREAM MERGER 492
8.4.2.13.1 PARTICIPATION EXEMPTION 493
8.4.2.13.2 SHAREHOLDINGS SMALLER THAN 5% 493 8.4.2.13.3 PARTICIPATIONS
IN PASSIVE INVESTMENT COMPANIES 494
8.4.2.14 RECAPTURE ON PARTICIPATION IN UPSTREAM MERGER (FORMER ARTICLE
13CA CITA) 494
8.4.2.15 TRANSFORMATION OF ESTABLISHMENTS AND UPSTREAM MERGER (FORMER
ARTICLE 13C CITA) 496
8.4.2.16 CONSOLIDATION OF ACCOUNTS PAYABLE AND ACCOUNTS RECEIVABLE 497
8.4.2.16.1 TRANSFERRING CREDITOR 497
8.4.2.16.2 CASE LAW BEFORE INTRODUCTION OF ARTICLE 12 CITA 498
8.4.2.16.3 ARTICLE 12 CITA (2001-2005) 499
XXIX
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TABLE OF CONTENTS
8.4.2.16.4 LITERATURE 8.4.2.16.5 TRANSFERRING DEBTOR 500
8.4.2.16.6 CROSS-BORDER MERGERS 502
8.4.3 STATUTORY MERGER RELIEF 502
8.4.4
8.4.3.1 8.4.3.2
8.4.3.3 8.4.3.4
INTRODUCTION THE TAKE-OVER OF FISCAL POSITION 8.4.3.2.1 CONSEQUENCES
LOSS COMPENSATION
SANCTIONS AND RECAPTURES MERGER RELIEF ON REQUEST 8.4.4.1 8.4.4.2
8.4.4.3
SHAREHOLDERS 8.5.1 8.5.2
INTRODUCTION LOSS COMPENSATION SANCTIONS AND RECAPTURES
INTRODUCTION TAX LIABILITY
503 504 504 505
505 505 505 506
8.5 SHAREHOLDERS 506
506 507
8.5.2.1 DOMESTIC SHAREHOLDERS 507
8.5.2.1.1 INDIVIDUAL SHAREHOLDERS 507
8.5.2.1.2 CORPORATE SHAREHOLDERS 507
8.5.2.2 FOREIGN SHAREHOLDERS 507
8.5.2.2.1 INDIVIDUAL SHAREHOLDERS 507
8.5.2.2.2 CORPORATE SHAREHOLDERS 508
8.5.3 TAXATION IN THE CASE OF MERGERS 508
8.5.3.1 INTRODUCTION 508
8.5.3.1.1 THIRD-STATE MERGERS 509
8.5.3.1.2 CASH PAYMENTS 509
8.5.3.2 DEEMED DISPOSAL OF SHARES: CAPITAL GAINS 510 8.5.3.2.1
INDIVIDUAL SHAREHOLDERS 510
8.5.3.2.2 CORPORATE SHAREHOLDERS 511
8.5.3.2.3 FOREIGN SHAREHOLDERS 511
8.5.3.2.4 DEEMED DISPOSAL AND TAX TREATIES 511
8.5.3.3 DEEMED ACQUISITION OF SHARES: STEP-UP 512 8.5.4 MERGER RELIEF
512
8.5.4.1 DOMESTIC SHAREHOLDERS 512
8.5.4.1.1 BUSINESS ACTIVITIES SUBJECT TO ITA 512
8.5.4.1.2 SUBSTANTIAL SHAREHOLDERS SUBJECT TO ITA 514
8.5.4.1.3 CORPORATE SHAREHOLDERS SUBJECT TO CITA 515
8.5.4.1.3.1 FROM NON-QUALIFYING SHAREHOLDING TO PARTICIPATION (ARTICLE
13HCITA) 515
XXX
IMAGE 23
8.5.4.1.3.2
8.5.4.1.3.3
8.5.4.1.3.4
8.5.4.1.3.5
8.5.4.1.3.6
8.5.4.2 FOREIGN SHAREHOLDERS
TABLE OF CONTENTS
FROM PARTICIPATION TO PARTICIPATION (ARTICLE 13K CITA) FROM
PARTICIPATION TO NON-QUALIFYING
SHAREHOLDING (ARTICLE 13K CITA) FROM NON- QUALIFYING
SHAREHOLDING TO NON-QUALIFYING SHAREHOLDING UPSTREAM MERGERS
(ARTICLE 13K(5) CITA) CONTAMINATED LOANS (ARTICLE 13K(3)
CITA)
8.5.4.2.1 BUSINESS ACTIVITIES SUBJECT TO ITA
516
516
517
517
518 518
518
8.5.4.2.2 SUBSTANTIAL SHAREHOLDERS SUBJECT TO ITA 518
8.5.4.2.3 CORPORATE SHAREHOLDERS SUBJECT TO CITA WITH A NETHERLANDS
PERMANENT ESTABLISHMENT 519
8.5.4.2.4 CORPORATE SHAREHOLDERS SUBJECT TO CITA WITHOUT A NETHERLANDS
PERMANENT ESTABLISHMENT 519
8.5.5 CREDITORS OF THE TRANSFERRING COMPANY 520
8.5.5.1 TAXATION OF CREDITORS 520
8.5.5.1.1 INTRODUCTION 520
8.5.5.1.2 DOMESTIC CREDITORS 520
8.5.5.1.3 FOREIGN CREDITORS 520
8.5.5.2 MERGERS AND CREDITORS 521
8.5.5.2.1 DOMESTIC CREDITORS 521
8.5.5.2.2 FOREIGN CREDITORS 522
8.5.5.3 CONSOLIDATION OF DEBTS BETWEEN MERGING COMPANIES WHICH ARE
LINKED 522
8.5.5.4 OUTBOUND MERGERS AND FOREIGN CREDITORS 523 8.5.5.5 CONCLUSIONS
IN RESPECT OF CREDITORS 523
8.5.6 PARENT-SUBSIDIARY MERGERS 523
8.5.6.1 INTRODUCTION 523
XXXI
IMAGE 24
TABLE OF CONTENTS
8.5.6.2 UPSTREAM MERGER (TRANSFERRING DEBTOR) 524 8.5.6.2.1 THE
SHAREHOLDING 524
8.5.6.2.2 THE DEPRECIATED LOAN 525
8.5.6.2.2.1 MERGER RELIEF 526
8.5.6.2.2.2 CROSS-BORDER MERGERS 527
8.5.6.3 DOWNSTREAM MERGER (TRANSFERRING CREDITOR) 527 8.5.6.3.1 THE
SHAREHOLDING 527
8.5.6.3.2 THE DEPRECIATED LOAN 528
8.5.6.3.2.1 MERGER RELIEF 529
8.5.6.3.2.2 CROSS-BORDER MERGERS 529
8.5.6.4 CONCLUSIONS 530
8.5.6.4.1 SHAREHOLDINGS 530
8.5.6.4.2 DEPRECIATED LOANS 530
8.5.7 CONCLUSIONS 531
8.6 ANTI-ABUSE PROVISIONS 532
8.6.1 IMPLEMENTATION OF ARTICLE 15 MERGER DIRECTIVE 532 8.6.2 TAX
AVOIDANCE ?
8.6.3 WHICH TAX LAWS? 533
8.6.4 MAINLY AIMED AT AVOIDANCE 534
8.6.5 PRESUMPTION OF AVOIDANCE 535
8A6 LOSS COMPENSATION OF RECEIVING COMPANY 536
8.7 DIVIDEND WITHHOLDING TAX V Y *?
8.7.1 INTRODUCTION *'
8.7.2 OUTBOUND MERGERS 537
8.7.3 INBOUND MERGERS C A0
8.8 CONCLUSIONS ^38
CHAPTER 9 GERMANY 9.1 CIVIL LAW ON CROSS-BORDER MERGERS 22
9.1.1 DOMESTIC REORGANIZATIONS L M
9.1.2 CROSS-BORDER REORGANIZATIONS
ON L 1 21 EU T R E ^Y FREEDOMS 547
9.1.3 PNVATE INTERNATIONAL LAW S
9 ! I S FT F M P ' Y EE PARTICI P ATI N REGIME 548
9.1.5 SE REGULATION AND DIRECTIVE 549
9 15 2 S E B A C T , N T HC I M P L E M E " T A T I ON OF THE SE 549
1 ] EMPLOYEE INVOLVEMENT ACT 550
FH F
'I T D A C T F A M E N D I N 8 ^ REORGANIZATION ACT 551 NIES FROM EU AND
EEA MEMBER STATES 552 XXXLL
IMAGE 25
9.2
9.2 9.2 9.2 9.2
.1 .2 .3 .4 .5
INTRODUCTION THE RTA THE 2007 REFORM THE SYSTEM OF THE
SCOPE RTA
OF THE RTA RTA
TABLE OF CONTENTS
9.1.6.3 ONLY CORPORATIONS WITHIN THE MEANING OF ARTICLE 2(1) OF THE
TENTH DIRECTIVE 552
9.1.6.4 EXCLUSION OF COOPERATIVE SOCIETIES AND INVESTMENT FUNDS 553
9.1.6.5 APECM 553
9.2 FISCAL ASPECTS OF MERGERS 554
554 555 556 557 558
9.2.5.1 MERGER OPERATIONS: OBJECTIVE SCOPE 558
9.2.5.1.1 VALIDITY OF MERGER OPERATION 559 9.2.5.1.2 MERGERS UNDER
ARTICLE 2 REORGANIZATION ACT 560
9.2.5.1.2.1 INTRA-GROUP MERGERS 560 9.2.5.1.2.2 UPSTREAM MERGER 561
9.2.5.1.2.3 DOWNSTREAM MERGER 561
9.2.5.1.2.4 SISTER MERGER 562
9.2.5.1.2.5 MIXED MERGERS 562 9.2.5.1.3 COMPARABLE FOREIGN TRANSACTIONS
563 9.2.5.1.3.1 COMPARABILITY TEST 563 9.2.5.1.3.2 PARTICIPATING LEGAL
ENTITIES 563
9.2.5.1.3.3 TRANSFER OF ASSETS: UNIVERSAL OR SPECIFIC TITLE? 564
9.2.5.1.3.4 FURTHER CRITERIA OF COMPARABILITY 564
9.2.5.2 LEGAL ENTITIES: SUBJECTIVE SCOPE 565
9.2.5.2.1 EU/EEA ENTITIES 565
9.2.5.2.2 QUALIFYING CORPORATE ENTITIES 566 9.2.5.2.3 THIRD-STATE
MERGERS: GERMAN PERMANENT ESTABLISHMENTS AND GERMAN SHAREHOLDERS 566
9.2.6 PROFITS FROM THE TRANSFER AND RECEIPT OF ASSETS AND LIABILITIES
567
9.2.6.1 HIDDEN DISTRIBUTIONS OF DIVIDENDS 568
9.2.7 RETROACTIVE EFFECT 568
9.2.7.1 INTERATIONAL ASPECTS OF RETROACTIVITY 571
9 -3 TRANSFERRING COMPANY 572
9.3.1 INTRODUCTION 572
9.3.2 TAXABLE MERGERS 573
9.3.2.1 FINAL BALANCE SHEET AT FAIR MARKET VALUE 573 9.3.2.2 PENSION
PROVISIONS 574
XXXM
IMAGE 26
TABLE OF CONTENTS
9.3.2.3 TRANSFER PROFITS 574
9.3.2.4 TRANSFER PROFITS SET-OFF AGAINST LOSS COMPENSATION RIGHTS 575
9.3.2.5 TRANSFER OF FISCAL RESERVES 576
9.3.2.6 TRANSFER OF FOREIGN PERMANENT ESTABLISHMENT IN DOMESTIC MERGER
576
9.3.2.7 OUTBOUND MERGER 577
9.3.2.8 FOREIGN PERMANENT ESTABLISHMENT AND OUTBOUND MERGER 577
9.3.2.9 GERMAN PERMANENT ESTABLISHMENT OF FOREIGN TRANSFERRING COMPANY
578
9.3.2.9.1 EU/EEA MERGERS 579
9.3.2.9.2 THIRD-STATE MERGERS 579
9.3.3 MERGER RELIEF 580
9.3.3.1 INTRODUCTION 580
9.3.3.2 THE REQUIREMENTS 581
9.3.3.2.1 UNIFORM TREATMENT OF ASSETS 581
9.3.3.2.2 FIRST CONDITION: ASSURANCE OF FUTURE TAXATION 582
9.3.3.2.3 SECOND CONDITION: NO LIMITATION OR EXCLUSION OF GERMAN FISCAL
JURISDICTION 584
9.3.3.2.3.1 OUTBOUND MERGER: ATTRIBUTION OF ASSETS TO REMAINING
PERMANENT
ESTABLISHMENT 585
9.3.3.2.3.2 RECENT CASE LAW ON EXIT TAXES AND TAX JURISDICTION 586
9.3.3.2.3.3 INBOUND MERGERS 588
9.3.3.2.4 THIRD CONDITION: RECEIVING COMPANY GRANTS NO CONSIDERATION OR
SHARES 588
9.3.3.2.4.1 NO CONSIDERATION 589
9.3.3.2.4.2 CONSIDERATION IN SHARES 589
9.3.3.2.4.3 ADDITIONAL CONSIDERATION IN CASH 590
9.3.3.3 FISCAL TREATMENT OF THE TRANSFERRING COMPANY 591
9.3.3.3.1 ASSESSMENT OF TRANSFER PROFITS 592
9.3.3.3.2 PARTICIPATION EXEMPTION 592
XXXIV
IMAGE 27
9.3.3.3.3
9.3.3.3.4 9.3.3.3.5 RECAPTURE ON MERGER
INTERNATIONAL
TABLE OF CONTENTS
ADDITIONAL PAYMENTS RECEIVING COMPANY TO SHAREHOLDERS TRANSFERRING
COMPANY CASH PAYMENTS TO OTHER PARTIES CONDITIONS ARE NOT MET
PARTICIPATION IN DOWNSTREAM
ASPECTS
593 593 593
594 594
9.3.3.4
9.3.3.5
9.3.3.5.1 OUTBOUND MERGER AND TRANSFER OF AN EU PERMANENT ESTABLISHMENT
595
9.3.3.5.2 MERGER OF EU/EEA COMPANIES AND TRANSFER OF A GERMAN PERMANENT
ESTABLISHMENT 596
9.3.3.5.3 MERGER OF THIRD-STATE COMPANIES AND TRANSFER OF A GERMAN
PERMANENT ESTABLISHMENT 597
9.3.3.5.4 INBOUND MERGER AND TRANSFER OF A GERMAN PERMANENT
ESTABLISHMENT 598
9.3.3.6 LOSS COMPENSATION RIGHTS 598
9.3.3.7 THE REQUEST 599
9.4 RECEIVING COMPANY 599
9.4.1 INTRODUCTION 599
9.4.2 TAXABLE MERGERS 600
9.4.2.1 BOOK VALUE RECEIVED ASSETS 600
9.4.2.1.1 INBOUND MERGER 601
9.4.2.1.2 INBOUND MERGER INCLUDING A DOMESTIC PERMANENT ESTABLISHMENT
601
9.4.2.1.3 DOMESTIC MERGER WITH FOREIGN PERMANENT ESTABLISHMENT 601
9.4.2.2 RECAPTURE ON PARTICIPATIONS IN UPSTREAM MERGER 602
9.4.2.3 CAPITAL GAINS ON PARTICIPATIONS IN UPSTREAM
9.4.2.4
MERGER 9.4.2.3.1 9.4.2.3.2
9.4.2.3.3
9.4.2.3.4 9.4.2.3.5 TAKE-OVER
9.4.2.4.1
INTRODUCTION STATUTORY PROVISION THE PARTICIPATION EXEMPTION OF ARTICLE
8B CITA PARTICIPATION LESS THAN 100%
INBOUND MERGERS OF FISCAL POSITION THE TREATMENT OF THE ASSETS RECEIVED
603 603 603
604 605 605 606
607
XXXV
IMAGE 28
TABLE OF CONTENTS
9.4.3
9.4.2.5
9.4.2.6
9.4.2.7
9.4.2.4.2 DEPRECIATIONS 9.4.2.4.3 FISCAL CLAIMS CONNECTED WITH ASSETS
9.4.2.4.4 RESERVES
GAINS FROM THE CONSOLIDATION OF DEBTS AND DEBT CLAIMS 9.4.2.5.1
INTRODUCTION 9.4.2.5.2 A RESERVE CORRESPONDING TO THE
PARTICIPATION
9.4.2.5.3 THE TAX-EXEMPT RESERVE 9.4.2.5.4 ANTI-ABUSE PROVISION
9.4.2.5.5 CROSS-BORDER MERGERS LOSS COMPENSATION RIGHTS
9.4.2.6.1 LOSSES OF TRANSFERRING COMPANY 9.4.2.6.2 LOSSES OF THE
RECEIVING COMPANY 9.4.2.6.3 LOSSES OF SUBSIDIARY COMPANIES OF THE
TRANSFERRING
COMPANY
A TAX-EXEMPT RECEIVING COMPANY MERGER RELIEF 9.4.3.1 9.4.3.2
9.4.3.3
9.5 SHAREHOLDERS 9.5.1 9.5.2
9.5.3
9.5.4
INTRODUCTION BOOK VALUE OF ASSETS RECEIVED 9.4.3.2.1 ASSETS RECEIVED
FROM A TAX- EXEMPT ENTITY
9.4.3.2.2 INBOUND MERGER 9.4.3.2.3 INBOUND MERGER INCLUDING A DOMESTIC
PERMANENT ESTABLISHMENT
9.4.3.2.4 DOMESTIC MERGER WITH FOREIGN PERMANENT ESTABLISHMENT PHASED
RECAPTURE ON ASSETS AFTER ACCELERATED DEPRECIATIONS
INTRODUCTION TAX LIABILITY 9.5.2.1 9.5.2.2
TAXATION 9.5.3.1
9.5.3.2 9 5 33 MERGER 9.5.4.1
DOMESTIC SHAREHOLDERS FOREIGN SHAREHOLDERS I IN THE CASE OF MERGERS
INTRODUCTION
9.5.3.1.1 THIRD-STATE MERGERS 9.5.3.1.2 CASH PAYMENTS DEEMED DISPOSAL OF
SHARES: CAPITAL GAINS DEEMED ACQUISITION OF SHARES: STEP-UP RELIEF
INTRODUCTION
607
608 608
609 609
610 610 610 611
611 611 612
613 614 614 614
615
615 616
617
618
618 620 620 620
620 621 623 623
624 624 625 625
626 626
XXXVI
IMAGE 29
TABLE OF CONTENTS
9.5.4.2 NO LIMITATION OR EXCLUSION OF GERMANY'S JURISDICTION 627
9.5.4.3 APPLICATION OF ARTICLE 8 MERGER DIRECTIVE 627 9.5.4.4
CONSEQUENCES: TAKE-OVER OF FISCAL VALUE AND FISCAL POSITION 628
9.5.4.5 SUBSEQUENT DISPOSAL OF SHARES 629
9.5.4.5.1 MERGER DIRECTIVE INFRINGES TAX TREATIES? 630
9.5.4.6 THE REQUEST 631
9.5.4.7 THIRD-STATE MERGERS 632
9.6 TRADE TAX ACT 632
9.7 ANTI-ABUSE PROVISIONS 633
9.8 DIVIDEND WITHHOLDING TAX 634
9.8.1 INBOUND MERGERS 634
9.8.2 OUTBOUND MERGERS 635
9.9 CONCLUSIONS 636
9.9.1 REMAINING TAX BURDENS 637
9.9.1.1 IN GENERAL 637
9.9.1.2 TRANSFERRING COMPANY 637
9.9.1.3 RECEIVING COMPANY 639
9.9.1.4 SHAREHOLDERS 640
9.9.1.5 ANTI-ABUSE PROVISIONS 640
9.9.1.6 DIVIDEND WITHHOLDING TAX 640
9.9.2 ADVANTAGES GERMAN SYSTEM 640
CHAPTER 10 PROPOSALS AND RECOMMENDATIONS 643
10.1 INTRODUCTION 643
10.2 PROBLEMS REQUIRING NATIONAL SOLUTIONS OR BILATERAL CONVENTIONS 643
10.2.1 EXTENSION TO DOMESTIC MERGERS 644
10.2.2 EXTENSION TO THIRD STATES 644
10.2.3 EXTENSION TO EEA STATES 644
10.2.3 CARRY-OVER OF LOSSES 645
10.2.4 EXTENSION TO PERMANENT ESTABLISHMENTS IN THIRD STATES AND EEA
STATES 645
10.2.5 SHAREHOLDERS OF THIRD STATES 646
10.2.6 DIVIDEND-WITHHOLDING TAX CLAIM 646
!0.3 A MODEL FOR TAXING THE TRANSFER ABROAD OF BUSINESS ACTIVITIES 647
10.3.1 INTRODUCTION 647
10.3.2 MODELS FOR EXIT TAXATION 648
10.3.2.1 PRESERVING TAX ASSESSMENT 648
10.3.2.2 EXIT TAX PAYMENT IN FIXED, EQUAL INSTALMENTS 649 10.3.2.3 EXIT
TAX PAYMENT IN FIXED, DIFFERING INSTALMENTS 650
XXXVU
IMAGE 30
TABLE OF CONTENTS
10.3.2.4 RESIDENCE-BASED COMPARTMENTALIZATION 650 10.3.2.5 RECOGNITION
OF BOOK VALUES 652
10.3.2.6 RECOGNITION OF BOOK VALUES AND TRADE IN EXIT CLAIMS 652
10.3.2.7 RECOGNITION OF BOOK VALUES AND FORMULA APPORTIONMENT 653
10.3.2.8 DEEMED PERMANENT ESTABLISHMENT 654
10.3.2.9 ANNUAL TAXATION OF ALL LATENT GAINS 654
10.3.2.10 EVALUATION OF THESE OPTIONS 655
10.3.2.10.1 CONCLUSION 655
10.3.3 PRELIMINARY CONDITIONS FOR AN APPROPRIATE SYSTEM OF EXIT TAXATION
656
10.3.4 POST-MERGER TAXATION OF ASSETS IN THE HOST STATE 656 10.3.4.1
HOLDING COMPANIES 657
10.3.4.2 ACTIVE BUSINESSES 657
10.3.4.3 HOST STATE DEPRECIATION 657
10.3.5 COLLECTION OF EXIT TAX AND TREATY FREEDOMS 658
10.3.5.1 ASSETS WHICH ARE NOT DISPOSED OF 658
10.3.5.1.1 EQUAL TREATMENT AS FUNDAMENTAL CRITERION 658
10.3.5.1.2 REALIZATION OF HIDDEN RESERVES 658 10.3.5.2 OTHER DEPRECIABLE
ASSETS 659
10.3.6 OVERALL INTERNATIONAL TAX NEUTRALITY 659
10.3.7 DEPRECIATION UNDER WHICH LAW? 660
10.3.8 DEPRECIATION AND DISPOSAL-BASED COLLECTION OF THE PRESERVING
ASSESSMENT 660
10.3.8.1 ADVANTAGES 661
10.3.8.2 DISADVANTAGES 662
10.3.9 CONCLUSION 662
10.4 DRAFT AMENDING DIRECTIVE 663
10.4.1 PROPOSALS CONCERNING THE SCOPE OF THE MERGER DIRECTIVE 663 10.4.2
PROPOSALS CONCERNING THE BENEFITS OF THE MERGER DIRECTIVE 666 10.4.3
PROPOSALS NOT CONCERNING CROSS-BORDER MERGERS 676 10.4.4 PROPOSALS
CONCERNING NATIONAL LEGISLATION AND
INTERNATIONAL AGREEMENTS 678
10.4.5 PROPOSED CONSOLIDATED VERSION OF THE MERGER DIRECTIVE 680
APPENDIX I DRAFT DIRECTIVE COM(1969)5 OF 16 JANUARY 1969 695
APPENDIX II COUNCIL STATEMENTS ON DIRECTIVE 90/434 705
APPENDIX III DRAFT 1970 SE REGULATION 709
XXXVIII
IMAGE 31
TABLE OF CONTENTS
APPENDIX IV LEGAL HISTORY OF THE MERGER DIRECTIVE 715
APPENDIX V TABLES OF CONVERSION 721
APPENDIX VI TABLE OF CASES 725
APPENDIX VII THE NETHERLANDS MODEL CONDITIONS UNDER ARTICLE 14B(3) CITA
733
APPENDIX VIII
OTHER NETHERLANDS DECREES 737
BIBLIOGRAPHY 739
INDEX 759
XXXIX |
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| series | EUCOTAX series on European taxation |
| series2 | EUCOTAX series on European taxation |
| spelling | Broek, Harm van den Verfasser aut Cross-border mergers within the EU proposals to remove the remaining tax obstacles by Harm van den Broek Alphen aan den Rijn [u.a.] Wolters Kluwer Law & Business, Kluwer Law International 2012 XLII, 766 S. txt rdacontent n rdamedia nc rdacarrier EUCOTAX series on European taxation 33 Teilw. zugl.: Nijmegen, Univ., Diss. Europäische Union (DE-588)5098525-5 gnd rswk-swf Recht Steuer Consolidation and merger of corporations Law and legislation European Union countries Consolidation and merger of corporations Taxation Law and legislation European Union countries Internationale Fusion (DE-588)4227349-3 gnd rswk-swf Steuerrecht (DE-588)4116614-0 gnd rswk-swf Europäische Union. Mitgliedsstaaten (DE-588)4113937-9 Hochschulschrift gnd-content Europäische Union (DE-588)5098525-5 b Internationale Fusion (DE-588)4227349-3 s Steuerrecht (DE-588)4116614-0 s DE-604 EUCOTAX series on European taxation 33 (DE-604)BV012505903 33 SWB Datenaustausch application/pdf http://bvbr.bib-bvb.de:8991/F?func=service&doc_library=BVB01&local_base=BVB01&doc_number=025137496&sequence=000003&line_number=0001&func_code=DB_RECORDS&service_type=MEDIA Inhaltsverzeichnis |
| spellingShingle | Broek, Harm van den Cross-border mergers within the EU proposals to remove the remaining tax obstacles EUCOTAX series on European taxation Europäische Union (DE-588)5098525-5 gnd Recht Steuer Consolidation and merger of corporations Law and legislation European Union countries Consolidation and merger of corporations Taxation Law and legislation European Union countries Internationale Fusion (DE-588)4227349-3 gnd Steuerrecht (DE-588)4116614-0 gnd |
| subject_GND | (DE-588)5098525-5 (DE-588)4227349-3 (DE-588)4116614-0 (DE-588)4113937-9 |
| title | Cross-border mergers within the EU proposals to remove the remaining tax obstacles |
| title_auth | Cross-border mergers within the EU proposals to remove the remaining tax obstacles |
| title_exact_search | Cross-border mergers within the EU proposals to remove the remaining tax obstacles |
| title_full | Cross-border mergers within the EU proposals to remove the remaining tax obstacles by Harm van den Broek |
| title_fullStr | Cross-border mergers within the EU proposals to remove the remaining tax obstacles by Harm van den Broek |
| title_full_unstemmed | Cross-border mergers within the EU proposals to remove the remaining tax obstacles by Harm van den Broek |
| title_short | Cross-border mergers within the EU |
| title_sort | cross border mergers within the eu proposals to remove the remaining tax obstacles |
| title_sub | proposals to remove the remaining tax obstacles |
| topic | Europäische Union (DE-588)5098525-5 gnd Recht Steuer Consolidation and merger of corporations Law and legislation European Union countries Consolidation and merger of corporations Taxation Law and legislation European Union countries Internationale Fusion (DE-588)4227349-3 gnd Steuerrecht (DE-588)4116614-0 gnd |
| topic_facet | Europäische Union Recht Steuer Consolidation and merger of corporations Law and legislation European Union countries Consolidation and merger of corporations Taxation Law and legislation European Union countries Internationale Fusion Steuerrecht Europäische Union. Mitgliedsstaaten Hochschulschrift |
| url | http://bvbr.bib-bvb.de:8991/F?func=service&doc_library=BVB01&local_base=BVB01&doc_number=025137496&sequence=000003&line_number=0001&func_code=DB_RECORDS&service_type=MEDIA |
| volume_link | (DE-604)BV012505903 |
| work_keys_str_mv | AT broekharmvanden crossbordermergerswithintheeuproposalstoremovetheremainingtaxobstacles |