Generationsskifte af landbrugsvirksomhed

Flemming Torp

Student thesis: Master executive thesis


This thesis addresses some of the tax- and gift-related issues that the parties in a generational change of an agricultural business have to consider. The thesis concentrates on a generational change within close family carried out while alive. The issues analyzed in the thesis are partly the challenges of valuing the company and partly the choices that the acquirer and also the transferor must consider regarding the application of the succession rules. In addition, the impact of the generational change on the buyer’s and seller’s business tax schemes is investigated. The analyses in the thesis are conducted in accordance with the legal method. Generational change within close family contains significant uncertainties regarding valuation of the company’s assets and liabilities, and therefore the question of which guidelines can be used to support valuation of the company is investigated. The valuation circular from 1982 is a guideline for valuation upon transfer of assets and liabilities within the gift environment. An analysis is made of boundary cases within which the circular’s guidance instructions may not necessarily be used as a basis for valuation. Transferring companies within the gift environment sometimes entails that the companies are transferred by full or partial gift. Based on this, the thesis makes an assessment of the consequences of gift transfer for the giver and recipient, based on the current law. In this context, the possibilities for reduced gift charges for generational change are reviewed. The possibilities for succession and the boundary cases in which succession disputes with SKAT are analyzed. The analysis is based on a ruling from the National Tax Tribunal and later a control signal from SKAT, which changes the practice of how compensation for the application of the succession provisions can be granted. It is considered in the thesis whether both methods can be used in the same transfer or just one of them. The thesis concludes that upon valuation of close family businesses can rely on the valuation circular from 1982. In addition, the thesis concludes that upon succession, two different methods can be used to compensate the acquirer for taking over the tax burden. Both methods can't be used at the same time, but the method that gives the greatest compensation can be chosen: either a calculated liability item for the reduction of the gift fee according to KSL § 33D when the company is transferred by full or partial gift, or a reduction in the trading price of the company with the market value of the deferred tax according to KSL § 33C. Finally, it is concluded that the choice of method of compensation for deferred tax has a different effect on the seller and buyer's business tax scheme, respectively.

EducationsMaster i Skat, (Executive Master Programme) Final Thesis
Publication date2018
Number of pages57