note: this is pure research on my part and not my field by a long shot. will let the experts figure it out, but felt it might be interesting input. (ie I haven't got a clue whether this is right for your context).


Eurodicatom
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1. deelnemingsvrijstelling(1) BTB - UEC85 - 828

Document 1

Subject Law - Legislation - Jurisprudence (JU)
Financial Affairs - Taxation & Customs (FI)
EN
Definition reductie of vrijstelling van belasting over de winstuitdeling van een vennootschap aan een andere vennootschap welke voor een bepaald percentage deelneemt in eerstgenoemde vennootschap

Reference Internat.Account.Lex,UEC-Concernverslaglegging
(1)
TERM deelnemingsvrijstelling

Reference Internat.Account.Lex,UEC-Concernverslaglegging

Note {DOM} handelsrecht:vennootschapsgroepen
EN
Definition a fiscal concession in respect of distributed profits arising from a holding by one company of more than a certain percentage of the shares of another company

Reference Internat.Account.Lex.,UEC-Group Accounts
(1)
TERM dividends received deduction

Reference Internat.Account.Lex.,UEC-Group Accounts

Note {DOM} commercial law:groups and group companies
{REG} American English



FRENCH TAX NEWS - FEBRUARY 2006 - prepared by ALTEXIS law firm ...
UK Tax Information · Blevins Franks Relocate Tax ... the dividends received deduction is no longer compensated for the computation of the tax consolidated ...
www.taxationweb.co.uk/internationaltax/frenchtax/news.php?i...

Campbell R. Harvey's Hypertextual Finance Glossary
Compare over 100 Secured Loans plans with Accepted.co.uk. ... Dividends-received deduction: A corporate tax deduction on income allowed by company A that is ...
www.duke.edu/~charvey/Classes/wpg/bfglosd.htm

Substantial Shareholding Exemption
• This important exemption covers shareholdings of 10% or more, and can also apply to joint-venture situations
• The shares must be held by another company as an investment, i.e. not as a dealing asset
• The disposal must occur on or after 1 April 2002
• If a gain arises on disposals, this will be exempt from tax, provided that certain conditions are met Conversely, a capital loss will not be recognised for tax purposes

http://www.parmentierarthur.co.uk/substantial-shareholding-e...


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Note added at 4 hrs (2006-03-13 21:44:35 GMT)
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Is it still Dunglish if the Australian government as passed the:

New International Tax Arrangements (Participation Exemption and Other Measures) Act 2004

http://www.ato.gov.au/taxprofessionals/content.asp?doc=/cont...

???

Some additional refs:

A corporate "SUBSTANTIAL SHAREHOLDING EXEMPTION" was introduced on 1 April 2002 for holdings of 10% or more of the shares in another company (30% or more for shares held by a life assurance company's long-term insurance fund). This is effectively a form of UK PARTICIPATION EXEMPTION. Almost all of the corporation tax raised on chargeable gains is paid by life assurance companies taxed on the I minus E basis.

http://en.wikipedia.org/wiki/Capital_gains_tax


The 2001 budget contained some detailed measures to improve the ill-though-out onshore mixing rules contained in the Finance Act 2000, the promise of further consultation on the bigger issue of a possible PARTICIPATION EXEMPTION for income and capital gains, and the threat of a further tightening of the CFC (Controlled Foreign Corporation) rules. Indeed, enabling legislation in the 2002 Finance Act allows the British government to alter the tax treatment of controlled foreign companies in jurisdictions which are considered to allow 'harmful tax practices'.

http://www.lawandtax-news.com/html/uk/juklatcomp.html









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Note added at 1 day1 hr (2006-03-14 18:32:45 GMT)
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From the UK websites of the Big Four:

UK groups have traditionally used an offshore holding company (HoldCo), typically in a participation exemption regime such as Luxembourg or the Netherlands

http://www.ey.com/GLOBAL/content.nsf/UK/Tax_-_Tax_News_-_Tax...


participation exemption for gains on shares

http://64.233.179.104/search?q=cache:OyENZ0NznwMJ:www.pwc.co...

The reasons for the recipient not being liable to tax may vary, but include situations where the recipient benefits from a participation exemption in a country that operates an exemption system of double taxation relief.

http://www.ukbudget.co.uk/UKBudget2005/Business/Budget05_avo...