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Two brothers consulted whether the income and expenses of a pharmacy should be split equally between them. The DGT ruled that, as only one is authorised to operate the business, he is the sole owner of the activity and must report all income and expenses personally.
This ruling clarifies that legal authorisation to operate a regulated business is the determining factor for tax liability, preventing the artificial splitting of income and expenses between non-authorised parties.
The tax team reviews your specific situation.
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