Anti-tax loss trafficking rules disallow the use of loss carryforwards after a change in ownership or activity (such as … significant changes in turnover, employment, or the product portfolio). This restriction could threaten accumulated loss … States from 1999 to 2014. My findings suggest that strict anti-tax loss trafficking rules indeed impair VC funding …

This paper investigates the inter-temporal loss usage of tax units in Germany. Tax units that experience a loss in a … year can offset that loss with positive income from adjacent year to receive a tax refund. Similar to companies, tax units … can employ losses as carry-back in the year before the loss or as carry-forward in the year following the loss. The tax …