Transfer and application of losses during transformations

This thesis deals with the issue of the transfer and application of tax losses during the transformation of commercial companies in the Czech Republic. The aim of this thesis is to analyze whether, during the transformations carried out between 2013 and 2015, tax losses were transferred from the dissolving companies to the successor companies and whether these losses were subsequently utilized. The theoretical part of the thesis describes the legal, accounting, and tax framework for transformations of commercial corporations, in particular the provisions of Act No. 586/1992 Coll. on Income Taxes, which regulates the transfer and application of tax losses. The practical part is based on an analysis of publicly available financial statements, from which fifteen transformations showing signs of a possible transfer of losses were selected. The analysis showed that in none of the transformations examined was there a case of rejection of the transfer of a tax loss by the tax administrator or its reduction pursuant to Section 38na of the Income Tax Act. At the same time, however, it was confirmed that the limited availability of tax returns and the incompleteness of information in financial statements do not allow for a full assessment of the actual extent of transfers and their tax implications.