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A taxpayer inquired whether they could declare a capital loss for holding shares in a company whose trading has been suspended. The Directorate General for Taxes (DGT) ruled that suspension alone is insufficient; the company must undergo dissolution and liquidation for such a loss to be recognised.
This ruling clarifies that the mere inability to trade shares does not constitute a taxable event for capital losses, requiring the formal termination of the legal entity to realise the loss.
The tax team reviews your specific situation.
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