The Study for the Tax System of Cross-border Corporate Reorganizations : Focusing on the EU Merger Tax Directive for Considering the Future Direction in Japan

Abstract

This article concludes that the legal framework of the EU Merger Tax Directive (hereinafter; MTD) can be an option other than the legal framework of cross-border corporate reorganizations in U.S. tax law as the future direction for the tax system of cross-border corporate reorganizations in Japan (hereinafter; TSCCR). From this study, it followed that the TSCCR in Japan had five issues: (1) Lack of the criterion for applying the TSCCR in Japan; (2) Inadequacy of the definition of qualified corporate reorganizations covered; (3) Inadequacy of the definition of persons covered; (4) Inadequacy of tax deferral requirements; (5) Lack of the anti-tax abuse provision. Based on each implication, this article recommends some amendments to the TSCCR in Japan. It\u27s also worth noting that this article will be expected to bring not only the trigger of arguments for the TSCCR in Japan as academic significance, but also the prospective increase of inbound investment in Japan through cross-border corporate reorganizations as social significance.This work was supported by JSPS KAKENHI Grant Number JP16K03312