Debt-to-equity conversion from a tax perspective

<ns3:p>This paper is devoted to the issue of debt conversion into equity (share or stock). In simple terms, it is an economicoperation where a previous creditor becomes a partner or shareholder in exchange for approving the extinctionof the claim to which he or she is entitled against the company. The practice of economic transactionsshows that in many situations there may be a need or even necessity to convert receivables into shares or stocksof a commercial law company. The aim of the paper is to assess the conversion of receivables from a tax perspective in the context of gaining influence on the economic fate of a capital company in order to avoid the loss that the creditor may face in the event that the company’s assets are not sufficient to satisfy it.</ns3:p>