Abstract

Restructuring a company brings business, legal and tax risks. Some of them are similar to all changes of a legal form (reporting tax schemes; recognizing actions as an attempt to avoid taxation). However, when it comes to a division of a private limited company it is important to separate an organized part of the company, and consequently going through totality of tax rights and responsibilities (tax succession) or responsibility of a third party. The difference in tax consequences is crucial. Imprecision of regulations in question still leads to multiple doubts. Still, the subject is rarely discussed in the literature. Therefore, it was important to make the analysis of key issues connected with a division of a private limited company.