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Skatteplanering vs. den optimala kapitaliseringsgraden / Tax Planning vs. the Optimal Capitalization Rate

This thesis deals with the legislative problem of thin and thick capitalization of subsidiary companies situated abroad. This kind of companies are often used for tax planning purposes, as means for transferring company profit from a high tax state to a low tax state. Today, the legislative flora around the world mainly focuses on the question"how low/high can the capitalization level of the company be, before thin/thick capitalization can be considered to be at hand?". Instead, this thesis raises the question"how far from the optimal capitalization rate is a probable capitalization level for a company, and can this be an alternative approach to legislation?". The object of the thesis is to point out possibilities, as well as obstacles, to this approach, but also to show a possible design of a regulation based on the approach. It is discussed whether the uncertainty in determining the optimal capitalization rate overthrows the theory behind the approach, or in fact strengthens it. Several advantages, but also a number of drawbacks, are shown. Hence, the conclusion of the study is neither in favor of, nor against, a regulation founded on the optimal capitalization rate, but rather an invitation to further discussion and calculations.

Identiferoai:union.ndltd.org:UPSALLA1/oai:DiVA.org:liu-933
Date January 2001
CreatorsRydhström, Jenny
PublisherLinköpings universitet, Ekonomiska institutionen, Ekonomiska institutionen
Source SetsDiVA Archive at Upsalla University
LanguageSwedish
Detected LanguageEnglish
TypeStudent thesis, info:eu-repo/semantics/bachelorThesis, text
Formatapplication/pdf
Rightsinfo:eu-repo/semantics/openAccess
RelationMagisteruppsats från Affärsjuridiska programmet, ; 2001:18

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