INCREASE IN VALUE OF CORPORATE SHAREHOLDINGS

The Italian Revenue Agency (AE), with the answer to motion no. 341 of 2019, considered elusive the transactions with which two shareholders natural persons, after having increased in value their shares, sold them to an holding company owned by the other shareholders of the target company, in case the purchase is financed through revenue reserves of the same target company.

For the AE, this sale transaction having been financed through revenue reserves from the target company, cause the same results of a “ordinary withdrawal”. Not producing a capital gain but a capital income and, therefore, is not possible to apply the favourable business aggregation tax.

Therefore, use of this favourable tax for this transaction cause an undue profit.

Our staff, experienced in extraordinary transaction, is available for any information.