Companies of different Member States: taxation of mergers, divisions, transfers of assets, exchanges of shares (amend. Directive 90/434/EC)

The committee adopted the report by Othmar KARAS (EPP-ED, A) broadly approving the proposal under the consultation procedure, subject to a small number of amendments. It introduced new provisions calling for a minimum holding period of one year, with the possibility for each Member State to extend it to two years, to reduce the likelihood of abuse and fraud. The committee also wanted Member States to be able to address the problem of double taxation in ways other than those specified in the directive, as long as the same result is achieved. �