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A company inquired whether the accounting loss on its shareholdings resulting from the dissolution of a related subsidiary could be treated as a tax loss. The DGT ruled that the difference between the market value of the assets received and the tax value of the shareholding must be included in the tax base.
Companies must ensure that the valuation of assets received during a dissolution is based on market value rather than book value to correctly determine tax losses or gains.
The tax team reviews your specific situation.
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