Arrangements to ensure tax neutrality of spin-off adopted

On 21 June 2007, the Ministry of Finance issued a notification regarding the tax treatment of spin-offs (rozdeleni odstepenim), a new form of reorganization under the Commercial Code. As previously reported), the Income Taxes Act (ITA) currently does not contain provisions to ensure, in line with the Merger Directive 90/434/EE., the tax neutrality of spin-offs. The Ministry has prepared an amendment to this effect, which is currently being discussed in the lower chamber of the p…