Prisfastsættelse og beskatning af en repo: En multi- og interdisciplinær fremstilling

Jakob Beier

Student thesis: Master thesis


The object of this thesis is the repurchase agreement which can be defined as a transaction involving a party, the Cash Taker, who agrees to sell securities for cash to a counterparty, the Cash Provider, and simultaneously agrees to repurchase the same or equivalent securities for a specific price at a particular time in the future. The treatment of this object is divided into an economic, a legal and an interdisciplinary part. Consequent-ly, the first part of the thesis deals with the pricing of the repurchase agreement which is addressed in the single period binomial model. Although the model is based on some restrictive assumptions, it is an ap-propriate tool to use in order to elucidate the key characteristics of the repurchase agreement. However, it must be recognized that the model does not take account of all key features of the repurchase agreement. Therefore certain points regarding the collateral used in the transactions must be considered in order to make the pricing as feasible as possible. On the basis of the economic functions and pricing of the instrument, the legal part of the thesis can be initiated. Accordingly, the Danish tax treatment of the repurchase agreement is examined in depth. In short, the discussion concerns whether the instrument must be considered as a secured loan for tax pur-poses, or if it should be qualified in accordance with its civil law nature; as a sale and repurchase of the collateral. In continuation of this, some issues regarding international taxation will be addressed due to the fact that the tax treatment of the repurchase agreement differs among jurisdictions which may give rise to double taxation or double non taxation. Finally, the interdisciplinary objective of the thesis is fulfilled through some legal policy considerations which are anchored in the pricing of the repurchase agreement and the tax treatment in force. These con-siderations deal with how the tax treatment should be when taking into account the legal policy aims of legal certainty and a consistent taxation. The reflections will include lessons gained from the pricing of the repurchase agreement since legal policy thoughts are often rooted in economic thinking.

EducationsMSc in Commercial Law, (Graduate Programme) Final Thesis
Publication date2013
Number of pages98