Taxing the Publicly Traded Stock In a Corporate Acquisition

Under current law, if a corporate acquisition qualifies as a reorganization, the target shareholders do not recognize built-in gain on the stock they surrender when they receive publicly traded stock. The proposal would treat sale stock would be taxed as if the stock had no sale restrictions. Restrictions on votes or the absence of votes would be ignored. Acquisitions can also be accomplished by the target corporation issuing sufficient new…
Andrews & Kurth Centennial Professor of Law, University of Texas at Austin - School of Law, USA
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