One of the major issues of accounting tax liabilities during of the reorganization is the inclusion of one or other funds to the taxable income of the enterprise-transferee.

The features of accounting during the reorganization of legal entities are identified in paragraph 153.15 в. 153 of the Tax Code of Ukraine of December 2, 2010 N 2755-VI, as amended and supplemented (hereinafter – TCU).

According to the paragraphs 153.15.1 п. 153.15 в. 153 of TCU the income of the taxpayer - legal successor does not include the amount of funds, debt claims, the value of tangible and intangible assets acquired from a legal entity which is terminated in connection with the reorganization.

Articles of fixed and intangible assets of the legal entity, which is terminated in connection with the reorganization, are included in the respective groups of fixed and intangible assets of the taxpayer - legal successor according to balance value at the date of approval of the transfer act and are subject to depreciation in the manner prescribed by this Code.

The cost of inventories that are fixed in the accounting of the legal entity under termination is included in the cost of inventories of the successor at the date of approval of the transfer act.

In the case if the date of increasing expenditures specified in this section and incurred (accrued) by a legal entity under termination did not come by the time of the transfer act approval, such expenses are recorded in the accounting of the taxpayer - legal successor. Such a taxpayer - successor acquires the right to increase the expenditures according to the standard procedure specified in this section. This rule is also applied:

to the amount of expenses that are accounted for in accordance with this section in a particular order (securities, derivatives expenditure, etc.), and unaccounted for in the reduction of income of the taxpayer by the time of the transfer act approval;

to the amount of income received (accrued) by the taxpayer, that is terminated, and not included in the income by the time of the transfer act approval.

The negative value of the object of taxation of the reporting period, which was accounted for by the taxpayer who is terminated by the date of the transfer act approval, is included in the expenditures of the taxpayer - legal successor. The noted is also applies to the sum of the negative value which is accounted for in a special manner, in accordance with this section, with the taxpayer who is terminated (negative value on transactions with securities, derivatives, receivables, etc.).

The provisions stipulated in paragraph 8 of the marked clause shall not apply if the taxpayer(s) that are terminated and the taxpayer - legal successor were related persons for less than eighteen consecutive months by the date of completion of the merger.

The expenses (income), stipulated by this subparagraph, and their evaluation shall be determined according to the accounting records and documents of the legal entity which is terminated at the date of the transfer act approval.

According to the paragraphs 153.15.2 п. 153.15 в. 153 of TCU during the reorganization in the form of a merger, consolidation, conversion of the legal entity, which implies the switch of shares (corporate rights) in a legal entity which is terminated and the shares (corporate rights) in a legal entity - successor. The value of shares (corporate rights) of the legal entity - successor in the accounting of the shareholder (participant) is defined in the value of shares (corporate rights) of the legal entity, whose production has been canceled (discontinued, etc.) as a result of the reorganization. In the case of reorganization in the form of separation (isolation), which provides for the distribution of shares (corporate rights) between the shareholders (participants) of legal entities formed as a result of the reorganization, the value of such shares (corporate rights) in the accounting of the shareholders (participants) is defined as the sum equal to the value of the part of the shares (corporate rights) in the legal entity under reorganization, the proportional value of the net assets of the legal entity formed as a result of the reorganization, and the total value of the net assets of the reorganized legal entity. The value of the net assets of legal entities mentioned in this paragraph shall be determined according to the distribution balance at the date of its approval.

Tetiana Mekhailovska

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