European Financial and Accounting Journal 2014, 9(3):25-49 | DOI: 10.18267/j.efaj.123

Tax Aspects of Mergers and Cross-Border Mergers

Marcela Žárová1, Jana Skálová2
1 doc. Ing. Marcela Žárová, CSc. - Assistant Professor; Department of Fnancial Accounting and Auditing, University of Economics, Prague, W. Churchill Sq. 4, 130 67 Praha 3, <zarova@vse.cz>,
2 Ing. Jana Skálová, Ph.D. - Research Assistant; Department of Fnancial Accounting and Auditing, University of Economics, Prague, W. Churchill Sq. 4, 130 67 Praha 3, <jana.skalova@vse.cz >.

The paper concentrates on tax aspects of merger with a special attention to cross-border ones. Despite the fact that Directive, which set the conditions for mergers, business investment and exchange rate of shares, was issued 24 years ago, unified treatment of tax aspects hasn't been reached yet. This paper is based on research of tax rules transposed from Tax Merger Directive, 83 into law systems of EU member states. This Directive was used for tax treatment of domestic mergers as for cross-border ones. Although the Directive has been transposed, there are differences in tax treatment among member states. The paper shows inability of solving the problem by Directive as coordination of the tax and legal regime of several jurisdictions are usually not adapted to each other and examples when the European Court of Justice is asked for treatment. Different approaches to discussed issues are presented in the paper.

Keywords: Cross-border mergers, Take over losses, Tax aspects
JEL classification: H25, H32

Published: October 1, 2014  Show citation

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Žárová, M., & Skálová, J. (2014). Tax Aspects of Mergers and Cross-Border Mergers. European Financial and Accounting Journal9(3), 25-49. doi: 10.18267/j.efaj.123
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