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Taxation Of Spin-Off – U.S. And German Corporate Tax Law, Stefan W. Suchan
Taxation Of Spin-Off – U.S. And German Corporate Tax Law, Stefan W. Suchan
Cornell Law School J.D. Student Research Papers
Corporate law provides for a transaction commonly referred to as “spin-off”. The corporate enterprise is divided in (at least) two corporations. The stock of a controlled subsidiary will be distributed pro rata by a parent corporation to its shareholders which end up owning a brother/sister pair of corporate enterprises.
The Internal Revenue Code (IRC) in § 355 provides special rules for the distribution of stock and securities of a controlled corporation. The transaction is known as a “D reorganization”, if such a distribution follows the transfer by a corporation of all or a part of its assets to another corporation, …