The sale of a dotcom รป the tax effects

Stephen Bruce, manager, Tax & Legal Support Services, PricewaterhouseCoopers, discusses the tax implications for merging with or selling dotcoms.

In April 2000, Forrester Research predicted that, due to the combination of weak financials, increased competitive pressures and investor flight, most of the online retailers that existed at that time would be out of business by 2001. Whilst the number of dotcom retailers that have gone out of business in the past 12 months has yet to be determined, there is no doubt that the year 2000 was a battle for survival for most online retailers.

This situation will probably continue well into the current year. For many of those that remain, cash reserves are running low, and for others, those reserves may actually run out well before achieving profitability. In fact, it has...

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