To the question about legal personality of holdings

Abstract

The scientific article describes the legal problem of tax legal personality of holding companies. The raised issue is actual because of fact that within the tax legislation there is no definition of the holding as a taxpayer. In addition, the tax law is not acquainted with the legal structure that could reflect the depth of legal relationships that hold the holding structure. Thus, it was concluded that the legal structure of the holding as an entity did not receive proper inter-branch unification in the tax law. Meanwhile, the author analyzed the essence and features of tax personality and concluded that the features of holding structures may be reflected in the tax law of Ukraine. When author investigating legislation, the he points out that the legal institution of the consolidated taxpayer is the legal structure that best reflects the legal characteristics of the holding structures. The author argues that the legal institute of the consolidated taxpayer will have a positive effect on the economy, as it will create a coherent and logical system of tax legal norms. The author is convinced that the tax consolidation regime will optimally take into account the interests of investors, since in this case, the holding companies and subsidiaries will be effectively involved in the logically structured system of the consolidated tax payer. On the other hand, the legal institute of the consolidated taxpayer will take into account state interests in the form of systematic filling of the state budget by taxation of significant financial capital. The author notes that despite the advantages of the legal institution of the consolidated taxpayer, the indicated tax mechanism needs a notable improvement and taking into consideration a number of peculiarities. The consolidated taxpayer is a complex legal fact that requires harmonization of the simultaneous implementation of various conditions that should ensure the legal existence of the consolidated taxpayer. In addition, the emergence of the consolidated taxpayer raises the need for its legal registration. The author is convinced that the study of the possibility of developing a legal institute of the consolidated taxpayer is the correct benchmark for the implementation of European legislation in the national legal system.

Keywords

• holding, parent company, related persons, tax personality, consolidated taxpayer