The fact that capital gains from sales of domestic participating interests are to be exempt from tax in the case of incorporated enterprises will make the - in some cases overdue restructuring of German groups much easier. With the lowering of corporate tax rates, Germany will in future occupy a competitive mid-table position in international terms.
In its aftermath, many Asian jurisdictions carried out reforms to improve their insolvency mechanisms. However, most of the initiatives eventually ended up promoting the pace of restructuring rather than the quality of restructuring. This had unintended consequences. Primarily, the widespread financial restructuring that followed resulted in masking underlying long-term weaknesses that were not immediately given the attention these deserved.