134. Final Directive On The Tax Reorganisation Act - KPMG

1. Citation and structure of the final Directive

2. Positions taken in the Directive on selected issues

2.1 Denial of reorganisation loss and stepped up basis for trade tax purposes

2.2 Linkage of tax and commercial balance sheets

2.3 Definition of "branch of activity"

2.4 Relevant time for determining existence of a branch of activity

2.5 General anti-abuse provision (sec. 42 AO)

2.6 Specific anti-abuse provisions for divisive reorganisations

2.7 Retroactivity of a reorganisation for tax purposes

2.8 Thin capitalisation rules (sec. 8a KStG) and corporate mergers

2.9 Denial of protection of sec. 8b KStG