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The taxpayer asks whether revoking a donation to avoid paying taxes on a subsequent donation is exempt from Gift and Inheritance Tax (ISD). The DGT rules that revocation does not constitute a new taxable event, provided that the donation can be civilly annulled with retroactive effect.
This ruling clarifies that the reversal of a previous gift, when legally valid under civil law, does not trigger a new tax liability, preventing double taxation on the same assets.
The tax team reviews your specific situation.
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