Polish Order will limit the development of companies
The Lewiatan Confederation informs that the provisions of the Polish Order will block mergers and divisions of companies.
The Ministry of Finance (MoF) is finishing work on a draft amendment to the CIT Act. This is to be the second stage of the Polish Order repair. The regulations will limit the neutrality of companies’ restructuring through their merger, division or exchange of shares. Tax neutrality after these changes come into force will be possible only if shares in the acquired or divided company were not acquired or taken up as a result of the exchange of shares. The first exchange of shares will be tax-neutral, whereas in case of subsequent exchanges CIT will have to be paid. According to the experts from the Lewiatan Confederation, it may result in limiting mergers or divisions of companies for financial reasons. They assess the regulations as harmful for the development of companies and call for their withdrawal.