Abstract
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.
Highlights
Over the past ten years, it has been possible to recognize European effort to promote cross-border mergers, as one of the possibilities to support free movement of capital cross borders
As above-mentioned topics are regulated by Directives in the EU and transposition of Directives might differ, European Court of Justice is asked for treatment
Cross-border mergers realized in the Czech Republic If we concentrate only on cross-border mergers carried out in the Czech Republic in the past few years, there will not be many statistics
Summary
Over the past ten years, it has been possible to recognize European effort to promote cross-border mergers, as one of the possibilities to support free movement of capital cross borders. Despite this fact, companies use this form of merge rather rarely. The aim of this article is to monitor numbers of realized cross-border mergers in the Czech Republic and to analyze tax aspects of domestic mergers and crossborder ones in the European Union. There are selected those judicial acts that show the direction of unifying the analyzed application of tax rules
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