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A taxpayer inquired whether the revocation of a previously made property donation is subject to Inheritance and Gift Tax. The DGT ruled that if the revocation is civilly possible and has retroactive effect, it does not constitute a new taxable event.
This ruling clarifies that the reversal of a donation through valid legal mechanisms does not trigger a new tax liability, provided the revocation is legally sound and operates retroactively.
The tax team reviews your specific situation.
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