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A query was raised regarding whether a subsidiary must join a tax consolidation group following the declaration of insolvency of the parent company. The Directorate General for Taxes (DGT) ruled that if the court ruling approving the restructuring agreement terminates the insolvency proceedings and the associated management restrictions, the situation is considered resolved.
This ruling provides legal certainty for companies undergoing restructuring, clarifying that the successful implementation of a court-approved agreement can restore the status required for tax consolidation.
The tax team reviews your specific situation.
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