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A query was raised regarding whether the nephews of the deceased's husband are eligible for the family business tax reduction and whether corporate legatees must pay Inheritance and Gift Tax (ISD). The DGT ruled that the nephews are considered unrelated parties upon the spouse's death and that corporations are subject to Corporate Tax.
This ruling clarifies the scope of the family business tax reduction, confirming it does not extend to relatives by affinity (such as nephews of a spouse) and reaffirms the tax obligations of corporate entities receiving legacies.
The tax team reviews your specific situation.
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