Thin capitalisation

As the hidden equity share is referred to on the debt in the tax law, the economy had the significance of equity. There may be capital that is provided the company with related parties in large sum at your disposal, mostly even without restraint, for example,. The equity is used in this case, as with other debt, as a risk buffer. It may be from a legal perspective to trade equity- replacing loans.

The most common form of providing covert equity performed by third parties in the form of a silent partnership. In this form of participation is made between the typical and atypical turnout once again. Other, relatively rare forms of participation are Venture Capital, a venture capital investment on both active and hidden equity can be.

Obscured equity takes a company usually then claim, if it will not hold debt due to low equity ratio at other institutions.

• Tax Law ( Germany )