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Elderly parents wish to donate company shares to their children while retaining their management positions. The DGT has ruled that no capital gains tax will be due for Income Tax purposes, provided the requirements of the Inheritance and Gift Tax Act are satisfied.
This ruling provides tax certainty for family business succession, allowing for the transfer of ownership without triggering immediate capital gains tax, provided management roles are maintained as per the law.
The tax team reviews your specific situation.
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