Debt financing costs from the tax law perspective: legacy treatment vs. recent developments

• Authors: Marie Karfíková , Radek Halíček
• Languages of publication: EN

Abstracts

EN

The paper explores the development of tax rules governing debt financing cost and analyses factors that have led to a rapid shift away from legacy treatments based on very general and somewhat soft limitations on tax deductions of excessive debt in recent years. The new concepts of excessive financing costs, hybrid instrument mismatches, minimum effective tax, misuse of shell entities, and debt-equity bias reduction are examined on the background of legacy concepts like thin capitalisation and transfer pricing.

Keywords

EN

debt financing costs; thin capitalisation; excessive financing costs; debt-equity bias reduction allowance

Discipline

• LAW_&_ADMINISTRATION: LAW & ADMINISTRATION

• Publisher: Institute of Sociology, Czech Academy of Sciences
• Journal: Data a výzkum - SDA Info (Data and Research - SDA Info)
• Year: 2023
• Volume: 13
• Issue: 3
• Pages: 249-261
• Document type: ARTICLE

Contributors

author

Marie Karfíková

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author

Radek Halíček

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