Skattemæssige konsekvenser i forbindelse med investeringsvinduet: Med et praktisk eksempel i Fresh Fitness

Christian Berg Johannesen & Mads Westberg Steiness

Student thesis: Diploma thesis

Abstract

On 13 June 2012, The Danish parliament, the Folketing, unanimously adopted Law No. 192 concerning investment window. The new law implies a change in depreciation law through the introduction of AL § 5 D. This shows that companies achieve an increased deductible basis for tax purposes on investment in new operating equipment that are acquired during the period 30 June 2012 to 31 December 2013. The increased tax depreciation basis amounts to 15 % on acquisition cost of operating equipment that are capitalized according to law on investment window, after which the new depreciation basis thereafter is 115% of the acquisition cost. In the event that capitalized operating equipment with the tax allowances will be sold before the end of income year 2017, the selling price is adjusted and added by 15 %. It should prevent intercompany speculation about the use of investment window. Investment window causes a challenge in relation to the accounting recognition of deferred tax as in accordance with IAS 12.15 b. it is not legal to recognize deferred tax on the difference in values arising on initial recognition. Consequently, the tax allowances are deducted from the taxable income as a permanent difference. The main objective of the thesis is therefore to examine the tax effect of investment window through the case company Fresh Fitness, a fitness chain with the intention of establishing new fitness centers. From the strategic analysis it appears that Fresh Fitness has received DKK 20m from its majority shareholder, Health & Fitness Nordic AB. Fresh Fitness has thus secured the necessary capital to benefit from the investment window by investment in fitness equipment for the new fitness centers. A successful expansion in the market, however, requires that Fresh Fitness increases their customers’ value understanding of the core service. The tax savings arising from the investment window will for Fresh Fitness amount to DKK 176,250 based on an investment of DKK 4,700,000 equivalent to savings of 3.75 % of the investment. The current value of tax savings is, however, only DKK 154,407 equivalent to 3.29 % of the investment.

EducationsGraduate Diploma in Financial and Management Accounting, (Diploma Programme) Final Thesis
LanguageDanish
Publication date2013
Number of pages88