Category: Uncategorized

The so-called Entrepreneurial tax in Denmark has been abolished as of 1 January 2013 with the enactment of Bill no. L 49 in the Danish Parliament.

This means that the taxation of capital gains on portfolio shares held by companies is significantly changed. Going forward a new category of shares is introduced in the form of so-called “tax exempt portfolio shares”. Such shares will be tax exempt for Danish corporate tax payers. The different categories of shares for Danish tax purposes will now consist of:

1. Shares acquired in trading
2. Subsidiary shares
3. Group shares
4. Tax exempt portfolio shares
5. Portfolio shares

Gains/losses on shares acquired in trading and portfolio shares are taxable/deductible, while gains/losses on subsidiary- group and tax exempt portfolio shares are tax exempt/non-deductible. Gains on convertible bonds or warrants to convertible bonds are taxable while losses are deductible.

The new category of tax exempt portfolio shares solely include portfolio shares in limited liability companies (A/S and ApS) or corresponding foreign companies in which a Danish company investor holds less than 10% of the share capital. It is moreover a requirement that the issuing company is not a listed company. It is not clear which foreign companies are considered corresponding to the Danish companies mentioned. This question must be dealt with on a case by case basis.

Dividends from portfolio shares remain taxable. This different treatment of dividends and capital gains is now a significant feature of the Danish regime and should be considered carefully when structuring investments.

Certain anti-avoidance measures have also been introduced to prevent the pooling of listed shares in unlisted holding companies. Tax exempt portfolio shares in companies in which the value of the company’s listed portfolio shares on average in the last financial year exceeds 85% of the company’s equity at the end of that year are not covered. Furthermore tax exempt portfolio shares owned and controlled by such companies are disregarded in the before mentioned calculation, while the controlled company’s shares are included in the calculation. The anti-avoidance provision seems to leave some room for certain structuring opportunities to pool listed portfolio shares in existing or new unlisted companies.

Form a practical perspective the new category of shares, the tax exempt portfolio shares will definitely solve some of the issues that start-ups have faced:

• Business angels investing through holding company can now obtain tax exempt capital gains on shares which do not exceed 10% of the share capital in the issuing company.
• Portfolio investors in private equity and venture funds can now receive tax exempt capital gains. Please be advised that Bill no. L 10 may impact the investment fund industry.
• Industrial investors with strategic portfolio shareholdings in other companies may also obtain tax exempt capital gains.

The above does not constitute tax advice from CORIT Advisory A/S and cannot replace actual advice based on the facts and circumstances of specific investors. If you do have any questions or comments to the above please do not hesitate to contact Jakob Bundgaard (jb@corit.dk), Kjeld Bergenfelt (kb@corit.dk) or Michael Tell (mt@corit.dk).

Read Michael Tell’s article here

See the article here

Vacant positions for candidates passionate about international tax

 

CORIT Advisory presently has two vacant positions for candidates passionate about international tax.

 

We are looking for the right people to help us achieve our goal to develop an independent top tier tax advisory firm. So if you are truly interested in international tax, an ambitious team player and interested in taking part of the development of a tax consulting firm with a unique profile, please contact us.

 

The candidates

The right candidate is:

• Open-minded,
• Flexible,
• Demonstrates a genuine interest to work with international tax matters,
• Fluent in English,
• Has the right entrepreneurial spirit, and
• Possesses humor.

 

About the positions

Tax consultant

Since the establishment of the firm we have experienced a very positive market response. Accordingly, we look for candidates to assist our clients with a range of international tax issues.

 

Our assignments typically fall within our primary areas of expertise. Please visit our web-site to learn more: www.oldcorit.

 

Student assistant

Moreover, we are looking for a talented and service oriented student assistant. We prefer a law student or a business law student. The areas of assistance needed comprise, but is not limited to, day to day assistance with practical matters at the office, maintenance of our web-site, legal research etc.

 

About CORIT Advisory P/S

CORIT Advisory is a highly specialized and fully independent tax boutique firm, offering tax consulting services within a range of complex areas of tax law. Our primary task is to assist businesses in identifying, addressing and mitigating tax risk in a rapidly changing environment.

 

Our ambition is to be recognized as a leading knowledge provider and business partner within the international tax consulting industry. Technical competences are highly prioritized.

 

We offer a unique combination of practical and applicable tax advisory services with the knowledge and insight of academia. This unique mix is the very core of CORIT advisory and is the common denominator of the people behind the firm.

 

Our dedication lies in tax advisory services with a relentless focus on the following:

• Quality and technical competences
• Ability to transform academic knowledge into practical solutions
• Business and framework understanding
• An innovation-driven and opportunity-seeking approach
• Independence
• Dedication to obtaining beneficial results for clients
• International perspective
• Accessibility and direct communication

The team is also the driving force behind CORIC Academic which is a one of a kind think tank on international tax matters.

 

Contact

Please send your application and resume to corit@corit.dk or contact Jakob Bundgaard (+45 40422284).

 

 

See the article here.

See the article here.

As of 1 July 2012 Kjeld Bergenfelt will join CORIT Advisory P/S as Partner.

 

Kjeld Bergenfelt is widely respected to be a leading capacity with more than 35 years of experience within important and highly complex areas of tax law. His areas of expertise include taxation of pension funds, banks, insurance companies, investment funds, investment companies, foundations and financial instruments. In addition Kjeld has been lecturing on tax law for numerous years and has authored a number of books on the above topics.

 

Kjeld will continue his activities within these areas. Moreover, he will add extensive experience to the CORIT team within other areas of corporate taxation.

 

We consider the advent of Kjeld Bergenfelt to be a perfect match and foresee great results from our cooperation.

 

About CORIT Advisory P/S

CORIT Advisory P/S is a highly specialized and fully independent tax boutique firm, offering tax consulting services within a range of complex areas of tax law. Our ambition is to be recognized as leading knowledge provider and business partner within the international tax consulting industry. Since the establishment of the firm we have experienced a very responsive market for independent and high quality tax advisory services.

We are looking for a talented and service oriented student assistant.

We are looking for a law student or a business law student with a true passion for international tax law.

CORIT Advisory P/S is a start-up company and thus need assistance within a range of areas. This includes, but is not limited to, day to day assistance with practical matters at the office, maintenance of web-site, newsletters, legal research etc.

The right candidate is open-minded; flexible; demonstrates a genuine interest to work with internal tax matters; is fluent in English and has the right entrepreneurial spirit and possesses humor.

We expect the student assistant to work approximately 15 hours per week.

We offer the possibility to work within a very dynamic and international environment where you will be trained by top tier consultants and respected as equal. We offer you the possibility to write your student theses among tax specialists. Moreover, the position may lead to a future permanent position.

About CORIT Advisory P/S

CORIT Advisory P/S is a highly specialized and fully independent tax boutique firm, offering tax consulting services within a range of complex areas of tax law. Our ambition is to be recognized as leading knowledge provider and business partner within the international tax consulting industry. Since the establishment of the firm we have experienced a very responsive market for independent and high quality tax advisory services.

Contact

Please send your application and resumé to corit@corit.dk or contact Jakob Bundgaard (+45 40422284) or Katja Joo Dyppel (+45 40422295)

 

CORIT Member Stuart Webber has written a Ph.D. thesis which has just been accepted for public defence on the 18. June, CET 14:00 at CBS.

The thesis is entitled “Corporate Profit Shifting and the Multinational Enterprise”
The chapters are

0. Introductory Chapter: Evidence of Corporate Profit Shifting
1. Thin Capitalization and Interest Deduction Regulations: A Worldwide Survey
2. The Tax Efficient supply Chain: Considerations for Multinationals
3. Escaping the U.S. Tax System: from Corporate Inversions to Re-domiciling
4. The IRS Investor Model.

The dissertation draws upon a number of academic disciplines. These are economics, finance, tax law, and supply management.

In order to obtain the PhD degree, Katja Joo Dyppel has submitted the thesis entitled:

 

“Beskatning af derivater. En analyse af dansk skatteret”

 

Supervisors;

Professor Jane Bolander

Juridisk Institut

CBS

 

Jakob Bundgaard, Ph.D.,

Adm.  direktør, CORIT Advisory P/S,

Adjungeret professor,

Aarhus Universitet

 

Assessment Committee;

Professor Peter Møgelvang-Hansen (chair)

Juridisk Institut

CBS

 

Professor Mattias Dahlberg

Juridiska Institutionen

Uppsala Universitet

 

Professor Aage Michelsen

Juridisk Institut

Aarhus Universitet

 

Time and place 20 April, 201213:00-15:00   Copenhagen Business School Solbjerg Plads 3 2000 Frederiksberg, Room: SPs10 Deloitte Aud.   Thesis The thesis will be available from http://openarchive.cbs.dk approx. one week before the defense   Reception After the defence LIMAC PhD School hosts a reception at Solbjerg Plads 3 in “Rotunden” on second floor (above the canteen)