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thin capitalization (An arrangement in which a company is incorporated with a small share capital and financed with a large loan from its parent company, usually in order to benefit from tax relief or the interest payment on the loan. Some countries, including the UK, reserve the right in such cases to treat some of the interest on the loan stock as if it were a dividend, thus denying the right to a tax deduction. OB&M  academic.ru Alexander Demidov) | |||