• Porsche finds loophole around $1.9 billion tax penalty resulting from Volkswagen acquisition

                    
      		   
      Published on 06-16-2012 12:04 AM
      4 Comments Comments
      The on again off again Porsche and Volkswagen deal appears to be back on. Just earlier this year German analysts were saying this deal would not be possible but never underestimate accountants and lawyers. Originally Volkswagen and Porsche intended to create a holding company to delay the deal until 2014 where they would be able to avoid taxes and legal ramifications. The new plan still needs to be approved by state authorities but Volkswagen intends to give Porsche the $4.5 billion purchase price of the company as well as 1 share of Volkswagen stock.

      By giving Porsche a share, even just one share, it is viewed as corporate restructuring under German law and this avoids the costly tax penalty. Corporate restructuring being tax free. This makes the deal possible much sooner but this still does not get Volkswagen and Porsche out of the multi-billion dollar lawsuit filed by investors. Saving almost $2 billion in taxes will likely go a long way to settling this lawsuit however.

      This article was originally published in forum thread: Porsche finds loophole around $1.9 billion tax penalty resulting from Volkswagen acquisition started by Sticky View original post
      Comments 4 Comments
      1. Itsbrokeagain's Avatar
        Itsbrokeagain - 06-16-2012, 01:02 AM
        Talk about family feuding at its worst. The Porsches and the Piechs pretty much never got along.
      1. Sticky's Avatar
        Sticky - 06-16-2012, 01:53 AM
        It's more just legal stuff standing in the way now.
      1. dreikraft's Avatar
        dreikraft - 06-16-2012, 02:44 AM
        how does porsche manage these acquisitions? their global market share is well.... its porsche
      1. Sticky's Avatar
        Sticky - 06-16-2012, 03:04 AM
        Click here to enlarge Originally Posted by dreikraft Click here to enlarge
        how does porsche manage these acquisitions? their global market share is well.... its porsche
        It's the reverse. Maybe my title implied it being the other way around, ugh. I'm too tired to edit.

        Basically it seems Porsche found the loophole on the tax penalty resulting from being acquired by VW. That should make more sense.