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A query was raised regarding whether the forgiveness of part of a mortgage loan could be subject to Inheritance and Gift Tax. The DGT ruled that if the purpose is to ensure the collection of the remaining debt, there is no intent to make a gift (animus donandi) and therefore no taxable event occurs.
This ruling provides legal certainty for financial institutions, confirming that debt restructuring aimed at recovering funds does not constitute a taxable gift.
The tax team reviews your specific situation.
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