Shares in a closely held company transferred as a gift can result in changed tax level

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PwC-skatteradgivning-Pen+Paper-solid_0002_burgundyThe Swedish Supreme Administrative Court (HFD) has determined that it is possible to reduce tax from 57 percent to 25 percent on the basis of transferring shares in a closely held company as a gift.

In an advance ruling in the autumn, the Council for Advance Tax Rulings determined that shares in closely held companies received as a gift do not always comprise ”3:12 shares” (so-called qualified shares) in the recipient solely on the basis that they comprised such shares in the giver (transferring entity). HFD has now confirmed the Council’s advance ruling.

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With HFD’s decision, the legal issue has been clarified as to whether the so-called continuity principle (which otherwise comprises the major rule as regards gifts) applying between a giver and the recipient of a gift is not always to be seen to apply the fiscal nature of shares in a closely held company (that is, qualified shares or unqualified shares).

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Andreas Stranne

Andreas Stranne

Andreas Stranne jobbar på PwC:s kontor i Göteborg som skatterådgivare för entreprenörer och deras bolag.
Kontakt: Tel: 010-213 14 47, andreas.stranne@pwc.com

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