연결집단의 구성에 관한 연결납세제도의 문제점과 개선방안

This article evaluates and suggests ways to improve provisions on the formation of a consolidated group under the consolidated return system as follows；First, in determining the complete control of subsidiaries, total stock should not include the preferred stock which (ⅰ) is not entitled to vote, (ⅱ) is non-participating and non-cumulative as to dividends and does not participate, (ⅲ) has redemption and liquidation rights that do not exceed the stock's issue price, and (ⅳ) is not convertible into another class of stock and the treasury stock. Second, where reciprocal stock between subsidiaries exists, a consolidated return should be permitted if the parent company controls the subsidiaries substantially even though there is no completely controlled subsidiary before considering the reciprocal stock holding. Third, options, warrants, obligations convertible into stock and other similar interests should be treated as exercised for purposes of determining whether a corporation is a member of a consolidated group if they result in the elimination of corporate tax liability and they will be exercised with a reasonable certainty. Fourth, a subsidiary should not be prevented from being a member of a consolidated group just because there are minor holdings of shares purchased from employees which had originally purchased the shares under the special arrangement for employee stock holdings. Fifth, it is advisable that non-profit organizations and foreign corporations be allowed to become a member of a consolidated group under the certain condition.