Federalizing the Tax-Free Merger: Toward an End to the Anachronistic Reliance on State Corporation Laws

Steven A. Bank
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引用次数: 3

Abstract

This articles examines the requirement that a merger be "statutory," or conducted pursuant to the corporation laws of a state, to be tax-free. The statutory merger requirement for "A" reorganizations is an anachronistic remnant of the 1930s belief that state corporation laws are effective regulators of corporate combinations and bulwarks against abuse of the tax-free reorganization provisions. This reliance on state corporate law standards is not only inconsistent with the recently adopted check-the-box regulations and no longer much of a regulator of any kind, but also is counterproductive in that it introduces disparities of treatment between parties based on their location. Ironically, the statutory merger requirement could conceivably prevent de facto mergers and mergers involving single-member limited liability companies, but permit mergers under nouveau corporate law statutes that do not require the parties to "merge" under any conventional sense of the word. Form is elevated above substance in a way that is both irrational and unproductive. In light of the failed efforts to remove the A reorganization from the Code altogether, the Article concludes that the statutory merger requirement should be eliminated from the A reorganization so that a more uniform standard can be applied by the courts and the IRS.
使免税合并联邦化:结束对国家公司法的过时依赖
本文研究了“法定”合并的要求,即根据州的公司法进行的合并是免税的。“A”型重组的法定合并要求是20世纪30年代的一种不合时宜的残余,这种信念认为,州公司法是公司合并的有效监管者,是防止滥用免税重组条款的堡垒。这种对州公司法标准的依赖不仅与最近采用的复选框规则不一致,也不再是任何类型的监管机构,而且还会适得其反,因为它在各方之间引入了基于其所在地的待遇差异。具有讽刺意味的是,法定的合并要求可能会阻止事实上的合并和涉及单一成员有限责任公司的合并,但在新的公司法法规下允许合并,这些法规不要求双方在任何传统意义上的“合并”。形式以一种非理性和非生产性的方式高于实质。鉴于从法典中完全删除A重组的努力失败,该条的结论是,应从A重组中删除法定合并要求,以便法院和国税局可以适用更统一的标准。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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