The Danish parliament chose in 2009 to change the Capital gains tax act. This resulted in the abolition of the previous year’s practice where shares held for more 3 years, could be sold tax-free. The change in legislation meant a division of shares, determined by size of shareholding. Shares of 10% or higher were subsidiary shares, while shares below 10% were classified as portfolio shares. Portfolio Shares, which previously could be sold without taxation, was now subject to taxation on unrealized gain or loss in the year. Gain on sale of subsidiary shares and dividend was made tax free. The amendment also meant that investors who invested in unlisted shares, should, to a greater extent than in the past, be aware of how their companies are structured. A change in shareholding to either under or over 10% will result in change of status from subsidiary shares to the portfolio shares, and vice versa. These changes can cause inappropriate taxation for the investors.This thesis will illustrate how the Danish capital owners can organize themselves in order to limit the taxation of profits and dividends. In cases where investors’ can’t construct themselves from taxation on unrealized gain or loss on unlisted shares, it is necessary to valuate those shares. We will look at various valuation models used to determine the value of unlisted shares. When being taxed on Portfolio Shares, investors can find themselves cases where they have to settle tax on shares that had not yet realized. In these cases where the shares are not sold to fund tax Investors must find other ways finance the tax. Different approaches can use to determine how to finance the tax. This thesis will look at how investors must act in relation to taxation of their portfolio shares.
|Uddannelser||Cand.merc.aud Regnskab og Revision, (Kandidatuddannelse) Afsluttende afhandling|