Porsche Skips Taxes on 4.5 Billion Euro Transaction… Legally
If you’re wondering how to sell the controlling stake in a major car company for 4.5 billion euros and leave the tax collector hanging without legal worry, just ask Porsche.
When Volkswagen AG swooped in to save a financially floundering Porsche SE in 2009, it took on just under half of the company for 3.9 billion euros. Until very recently, the remaining takeover was an on-again off-again story, but thanks so clever financing, the transaction will be complete ahead of schedule without cutting the Stuttgart tax office a slice.
The financial magicians haven’t revealed their trick just yet, but it sounds like skating around the system was possible because Porsche only accepted a single voting share in Volkswagen, allowing the company to label the action a restructuring.
[Source: WirtschaftsWoche]
Luke is an energetic automotive journalist who spends his time covering industry news and crawling the internet for the latest breaking story. When he isn't in the office, Luke can be found obsessively browsing used car listings, drinking scotch at his favorite bar and dreaming of what to drive next, though the list grows a lot faster than his bank account. He's always on <A title="@lukevandezande on Twitter" href="http://twitter.com/lukevandezande">Twitter</A> looking for a good car conversation. Find Luke on <A title="@lukevandezande on Twitter" href="http://twitter.com/lukevandezande">Twitter</A> and <A title="Luke on Google+" href="http://plus.google.com/112531385961538774338?rel=author">Google+</A>.
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