Chosen Tax-Related and Economic Aspects of Choosing the Method of Equity Financing in Relation to Thin Capitalisation in the Countries of OECD

The present publication is concerned with the process of thin capitalisation in the countries of OECD. Two methods for financing companies are discerned in relation to this phenomenon, i.e. debt and equity financing. The tax-related consequences of the method of equity financing of companies are ass...

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Main Author: Dominik Gajewski
Format: Article
Language:English
Published: VIZJA University 2012-03-01
Series:Contemporary Economics
Online Access:http://ce.vizja.pl/en/download-pdf/id/235
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author Dominik Gajewski
author_facet Dominik Gajewski
author_sort Dominik Gajewski
collection DOAJ
description The present publication is concerned with the process of thin capitalisation in the countries of OECD. Two methods for financing companies are discerned in relation to this phenomenon, i.e. debt and equity financing. The tax-related consequences of the method of equity financing of companies are assessed against thin capitalisation. It is the very tax policy of companies that has a direct influence on the economic consequences of the functioning of these companies. The process of taxation of the phenomenon of thin capitalisation may be highly varied depending on the adopted method. Tax-related consequences demonstrate how complicated this process is irrespective of the country in which it takes place. The issue is even more complicated in the case of taxation of this process in companies conducting cross-border activity.
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spelling doaj-art-aabb06eebfc04e98aa78d90a23cb7ed72025-08-20T03:04:26ZengVIZJA UniversityContemporary Economics2084-08452012-03-016119710.5709/ce.1897-9254.36Chosen Tax-Related and Economic Aspects of Choosing the Method of Equity Financing in Relation to Thin Capitalisation in the Countries of OECDDominik GajewskiThe present publication is concerned with the process of thin capitalisation in the countries of OECD. Two methods for financing companies are discerned in relation to this phenomenon, i.e. debt and equity financing. The tax-related consequences of the method of equity financing of companies are assessed against thin capitalisation. It is the very tax policy of companies that has a direct influence on the economic consequences of the functioning of these companies. The process of taxation of the phenomenon of thin capitalisation may be highly varied depending on the adopted method. Tax-related consequences demonstrate how complicated this process is irrespective of the country in which it takes place. The issue is even more complicated in the case of taxation of this process in companies conducting cross-border activity.http://ce.vizja.pl/en/download-pdf/id/235
spellingShingle Dominik Gajewski
Chosen Tax-Related and Economic Aspects of Choosing the Method of Equity Financing in Relation to Thin Capitalisation in the Countries of OECD
Contemporary Economics
title Chosen Tax-Related and Economic Aspects of Choosing the Method of Equity Financing in Relation to Thin Capitalisation in the Countries of OECD
title_full Chosen Tax-Related and Economic Aspects of Choosing the Method of Equity Financing in Relation to Thin Capitalisation in the Countries of OECD
title_fullStr Chosen Tax-Related and Economic Aspects of Choosing the Method of Equity Financing in Relation to Thin Capitalisation in the Countries of OECD
title_full_unstemmed Chosen Tax-Related and Economic Aspects of Choosing the Method of Equity Financing in Relation to Thin Capitalisation in the Countries of OECD
title_short Chosen Tax-Related and Economic Aspects of Choosing the Method of Equity Financing in Relation to Thin Capitalisation in the Countries of OECD
title_sort chosen tax related and economic aspects of choosing the method of equity financing in relation to thin capitalisation in the countries of oecd
url http://ce.vizja.pl/en/download-pdf/id/235
work_keys_str_mv AT dominikgajewski chosentaxrelatedandeconomicaspectsofchoosingthemethodofequityfinancinginrelationtothincapitalisationinthecountriesofoecd