Tax law and the transfer of losses: A European overview and categorization

Bührle, Anna Theresa ; Spengel, Christoph

URL:	https://kluwerlawonline.com/journalarticle/Interta...
Dokumenttyp:	Zeitschriftenartikel
Erscheinungsjahr:	2020
Titel einer Zeitschrift oder einer Reihe:	Intertax : International Tax Review
Band/Volume:	48
Heft/Issue:	6/7
Seitenbereich:	564-581
Ort der Veröffentlichung:	Alphen aan den Rijn
Verlag:	Kluwer Law Internat.
ISSN:	0165-2826 , 1875-8347
Sprache der Veröffentlichung:	Englisch
Einrichtung:	Außerfakultäre Einrichtungen > GESS - CDSB (BWL) Fakultät für Betriebswirtschaftslehre > ABWL u. Betriebswirtschaftliche Steuerlehre II (Spengel 2006-)
Fachgebiet:	330 Wirtschaft
Abstract:	Most of the European Member States employ anti-loss trafficking rules. They aim to prevent the acquisition of mere corporate shells with high tax loss carryforwards for the tax asset to be utilized in profitable companies. However, other corporations can unintentionally be affected by the antiabuse regulations if there is a change in ownership or activity. The transfer restrictions have been argued to impair start-up financing, as investors are faced with the risk of losing accumulated loss carryforwards in the corporation upon the entering of new or the capital increase of existing investors. This study provides an overview over the design and development of loss transfer restrictions in the EU28 over a time period of nineteen years (2000–2018). Different aspects of the regulations are analysed against the background of their impact on start-ups. Finally, the rules are categorized with respect to their strictness. Over time, more countries introduced restrictions. Simultaneously, the regulations became more lenient, offering start-ups more opportunities to maintain their loss carryforwards and, therefore, decreasing the risk for investors.