Porsche Automobil Holding SE has discovered a means by which the 50.1% left of sports car unit Porsche AG will be sold to Volkswagen Group without having to pay around 1.5 billion euros ($1.9 billion) in tax, according to a report last week on WirtschaftsWoche. The publication first stated that tax authorities think that the agreement was considered to be a restructuring and not a disposal that would relate to tax payments.
This is because Porsche would need a single voting share in Volkswagen as part of the 4.5 billion euro transaction. Sources inside the finance ministry of Baden-Wuerttemberg, the magazine shared that a legally binding notice has been prepared by Porsche SE in Stuttgart. For this model, no vehicle has been tasked to make a stand.
A Porsche spokesman said that it has yet to complete a study of the tax implications of the agreement. Porsche SE is based in Stuttgart, the capital of Baden-Wuerttemberg state.
In the past, Porsche SE had said it would have to wait until 2014 to sell the remaining stake tax-free. But in December 2009, Volkswagen acquired 49.9% of Porsche sports cars for 3.9 billion euros in December 2009 as part of a deal that avoided the probable insolvency of debt-laden parent Porsche SE. A VW spokesman said that it is continuing to study its options.