Taxation of European Companies at the Time of Establishment and Restructuring: Issues and options for reform with regard to the status quo and the proposals at the level of the European Union

3834923591......Page 1
Taxation
of European Companies
at the Time of Establishment
and Restructuring......Page 4
Foreword......Page 6
Preface......Page 7
Table of Contents......Page 8
List of Abbreviations......Page 12
List of Figures......Page 15
List of Tables......Page 17
1.1 Motivation of the thesis......Page 18
1.2 Aim of the thesis and object of examination......Page 23
1.3 Organization of the thesis......Page 24
2.1 Basic features of the European Company......Page 26
2.2 Examination of statistical data regarding the use of the European Company......Page 27
2.3 Interim conclusions......Page 32
3.1.1 Neutrality and efficiency......Page 33
3.1.2 Equity and fairness......Page 34
3.2.1 General features of reorganizations......Page 37
3.2.2 Treatment of hidden reserves......Page 38
3.2.3 Retention of unused losses......Page 41
3.2.5 Additional transaction taxes......Page 42
3.3 Application to purely national contexts......Page 43
3.4 Application to the ideal internal market......Page 44
3.5 Interim conclusions......Page 46
4.1.1 Neutrality and equity in an international context......Page 47
4.1.1.1 International neutrality and efficiency......Page 48
4.1.1.2 International equity and fairness......Page 49
4.1.1.3 Taxing right and time of taxation at international restructurings......Page 52
4.1.1.4 Valuation at international restructurings......Page 56
4.1.1.5 Interim conclusions......Page 57
4.1.2 EU law......Page 58
4.1.2.1.1 Decisive fundamental freedoms......Page 59
4.1.2.1.2 Discriminations and restrictions of the fundamental freedoms......Page 61
4.1.2.1.3 Justifications of discriminations and/or restrictions......Page 63
4.1.2.3 Decisive judgments of the European Court of Justice in the context of reorganizations......Page 66
4.1.3 Side condition: Feasibility......Page 69
4.1.4 Interim conclusions......Page 70
4.2.1 Approach for the comparative analysis......Page 72
4.2.2 Merger Directive......Page 73
4.2.3.1.1 Basics with regard to company law......Page 75
4.2.3.1.2 Tax consequences......Page 76
4.2.3.1.2.1.1.1 Assets and liabilities in country of transferring company......Page 78
4.2.3.1.2.1.1.2 Permanent establishments in country other than that of transferring company......Page 89
4.2.3.1.2.1.2.1 Tax-exempt provisions and reserves......Page 94
4.2.3.1.2.1.2.2 Losses......Page 96
4.2.3.1.2.1.2.3 Prior holdings......Page 99
4.2.3.1.2.1.2.4 Additional transaction taxes......Page 101
4.2.3.1.2.2 Shareholder level......Page 103
4.2.3.1.3 Interim conclusions......Page 110
4.2.3.2.1 Basics with regard to company law......Page 111
4.2.3.2.2 Tax consequences......Page 112
4.2.3.3.2 Tax consequences......Page 126
4.2.3.3.2.1 Contributions of cash or shares......Page 127
4.2.3.3.2.2 Contributions of branches of activity or single assets......Page 128
4.2.3.4 Conversion......Page 145
4.2.4.1 Basics with regard to company law......Page 147
4.2.4.2 Tax consequences......Page 148
4.2.5 Exit......Page 161
4.2.6 Interim conclusions......Page 162
4.3.1 Company law......Page 164
4.3.2.1 Missing or incorrect transformation of Merger Directive......Page 167
4.3.2.2 Treatment of accrued hidden reserves......Page 169
4.3.2.2.1.1.1 Taxing right and time of taxation......Page 170
4.3.2.2.1.1.1.1 Assessment against the background of international neutrality and equity......Page 171
4.3.2.2.1.1.1.2 Assessment against the background of primary and secondary EU law......Page 173
4.3.2.2.1.1.2 Valuation......Page 179
4.3.2.2.1.2.1 Assets remaining in the former jurisdiction to tax......Page 181
4.3.2.2.1.2.2.1 Requirements with regard to the tax base, the tax rate and the taxable event......Page 182
4.3.2.2.1.2.2.3 Required coordination between countries involved......Page 185
4.3.2.2.1.2.2.4 Uncoordinated approaches......Page 189
4.3.2.2.1.2.2.5 Other options: taxation of unrealized gains or abolishment of taxing rights upon exit......Page 192
4.3.2.2.2 Transfers of foreign permanent establishments......Page 194
4.3.2.2.3 Transfer of shares from one member state to another......Page 195
4.3.2.2.4 Doubling of hidden reserves......Page 196
4.3.2.3 Retention of unused losses......Page 199
4.3.2.4 Filing obligations and avoidance of abuse......Page 202
4.3.2.5 Additional transaction taxes......Page 204
4.3.3 Interim conclusions......Page 205
5.1 Guiding tax principles......Page 208
5.2 Common Corporate Tax Base......Page 209
5.3.1.1 Ongoing system......Page 212
5.3.1.2 Transitional aspects......Page 217
5.3.2.1 Transactions taking place within a consolidated CCCTB group......Page 220
5.3.2.2 Transactions not taking place within a consolidated CCCTB group......Page 225
5.4 Interim conclusions......Page 231
6 Conclusions......Page 233
Appendix......Page 240
List of References......Page 245