Taxing joint ventures

Joint ventures are an increasingly popular means of achieving commercial goals: they are used, for example, to pool businesses’ technology (e.g. the Galvani Bioelectronics JV between Alphabet and GSK), as a means of creating scale and synergies while giving both parties an ongoing stake in the upside (e.g., EE before its sale to BT), or simply to create a consortium of investors to purchase an asset. Whilst JVs can take many forms (including partnerships and contractual collaborations), corporate JVs, often the preferred structure for long-term JVs, are the focus of this article.

This article was first published in the 24 March 2017 edition of Tax Journal

taxing-joint-ventures.pdf