Mechanism Of Taxation Of Reorganizations And Transfers Established In The Council Directive 2009/133/Ec

Abstract

In terms of reorganizations and transfers, specific regulations are applied on a national level and these operations are neutral in terms of corporate income tax. On the EU level, where a common market with free movement of persons and capital exists, the unified taxation of reorganizations and transfers has also been introduced by the Council Directive 200913EC (hereinafter “Directive”). The adopted Directive created a system whereby two objectives are being sought: firstly, to postpone the taxation of capital gains in cases of reorganizations and transfers; secondly, to protect financial interests of the Member States (Finnerty, 2007, p. 23). The present article elaborates on each one of these aims and the course of their implementation.