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A reorganizations statutory mergers and consolidations william j vesely 7 he statutory merger or consolidation is one of the two principal types of reorganizations for acquiring the assets of another corporation in a tax free transaction the other prin. Statutory mergers a reorganizations this portion of the introduction to the basic principles of united states federal income taxation of corporate acquisitions is part of the pillsbury winthrop shaw pittman llp tax page a world wide web demonstration project comments are welcome on the design or content of this material the information presented is only of a general nature intended . Federal tax law unduly limits nonrecognition treatment of triangular mergers the most important acquisition form used in the united states1 the law is internally inconsistent and difficult to understand the poor state of the rules has real costs to parties involved in corporate acquisitions who. While it is possible that the new corporate income tax rate of 21 percent will reduce the corporate level benefit of structuring a transaction to be tax free it should be noted that the top capital gains and qualified dividend federal income tax rate for individuals was left unchanged at 238 percent including the 38 percent medicare tax on