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Chapter

Title

The Problem of Thin Capitalization for Financial Security of an Enterprise

Authors

[ 1 ] Instytut Logistyki, Wydział Zarządzania i Dowodzenia, Akademia Sztuki Wojennej | [ 2 ] Wojskowa Akademia Techniczna | [ P ] employee

Scientific discipline (Law 2.0)

[5.6] Learning about management and quality

Year of publication

2020

Chapter type

chapter in monograph / paper

Publication language

english

Keywords
EN
  • Thin capitalisation
  • Financial security
  • Incometax
  • Enterprise
PL
  • Bezpieczeństwo finansowe
  • Finanse
  • Przedsiębiorstwo
Abstract

EN The functioning of anenterprise, its essence and, above all, the purpose for which it was established (the profit of its owners) means that in each period of its functioning it is forced to search for sources of financing for its activities. The ba-sic source of financing for any enterprise should be money generated by the enterprise itself. Business entities strive for the largest possible retention of capital in their hands apply tax optimization measures, including thin capitalization. The existing restrictions on thin capitalization introduce a mechanism to limit debt financing costs included in tax costs. This article cha-racterizes the mechanism of insufficient capitalization and the changes that have taken place in it. The purpose of this article is anattemptto assess the importance of this mechanism for the financial security of the enterprise.

Pages (from - to)

13648 - 13654

URL

https://ibima.org/accepted-paper/the-problem-of-thin-capitalization-for-financial-security-of-an-enterprise/

Book

Proceedings of the 36th International Business Information Management Association Conference (IBIMA)

Presented on

36th International Business Information Management Association Conference (IBIMA), 4-5.11.2020, Granada, Spain

Points of MNiSW / chapter

5

Points of MNiSW / conference (CORE)

70

Publication indexed in

WoS | Scopus