The Resource Third state migration and corporate exit tax : fundamental lack of member states' legislation?

Third state migration and corporate exit tax : fundamental lack of member states' legislation?

Label
Third state migration and corporate exit tax : fundamental lack of member states' legislation?
Title
Third state migration and corporate exit tax : fundamental lack of member states' legislation?
Creator
Subject
Language
eng
Summary
Some member states consider the outbound transfer of the company's place of effective management (POM) to a third state to be a tax-relevant event, levying an immediate exit tax on the unrealised capital gains. Germany is going to tax a deemed liquidation if a domestic company acquires treaty residence in a third state. The existing case law of the European Court of Justice (ECJ) deals only with the POM transfer to another EU/EEA state. The UK and Ireland apply a similar kind of exit tax when a domestic company becomes a tax resident abroad due to a tax treaty tie-breaker rule. In such a case, the company is deemed to have disposed of and immediately reacquired all of its assets at market value. Based on the ECJ decision in National Grid Indus BV member states have updated their tax legislation. This article analyses the corporate exit taxation using as background the company's emigration to a third state by acquiring treaty residence in that state. The main question is whether or not the exit tax rules of the member states breach the freedom of establishment in regard to such third state cases. Another relevant question is whether primary law may constitute an obligation to give relief from corporate exit tax when the emigrating company acquires treaty residence in a third state. The article also discusses the possible implications for the national legislation on exit taxation
Citation source
In: British tax review. - London. - (2016),
http://library.link/vocab/creatorName
Kollruss, T
Geographic coverage
  • European Union
  • Europe
Language note
English
http://library.link/vocab/subjectName
  • place of effective management
  • exit tax
  • residence
  • tax treaty
  • tie-breaker rule
  • third countries (EU)
  • ECJ case law
  • fundamental freedoms
Label
Third state migration and corporate exit tax : fundamental lack of member states' legislation?
Instantiates
Publication
Label
Third state migration and corporate exit tax : fundamental lack of member states' legislation?
Publication

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