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Proposed anti-abuse rule on taxation of convertible bonds

|Proposed Changes|Denmark
Denmark

On 15 April 2008, the Minister of Taxation presented a bill (L 181) to the parliament, introducing a new anti-abuse rule regarding the tax treatment of convertible bonds. Under Sec. 1 of the Danish Act on Taxation of Capital Gains on Sale of Shares, convertible bonds are taxed as shares. Thus, a possible gain on convertible bonds will not be taxed if the bonds are held by a company …

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