The Tax Treatment of Corporate Losses: A Comparative Study

The tax treatment of corporate losses is a hot topic in times of economic downturn for both taxpayers as well as governments. This article outlines the findings of a comparative study that the authors performed in this respect amongst 50 countries. More specifically, the authors draw conclusions on the terms for the carry back and carry forward of losses as well as the presence of change of ownership/activity legislation in the countries investigated.

Furthermore, the authors highlight some of the most commonly seen loss refresher strategies that are available for taxpayers to avoid that losses can no longer be utilized. Finally, conclusions are drawn on the recently published OECD report regarding corporate loss utilization through aggressive tax planning.