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A taxpayer asks about the tax treatment of contributing agricultural land from their farm to a company and subsequently donating the received shares. The DGT responds that, due to the absence of commercial accounting, the deferral regime cannot apply, and capital gain or loss must be taxed.
Contributors without commercial accounting must recognise capital gains or losses when contributing non-monetary assets to a company, regardless of whether the activity is economic or not.
The tax team reviews your specific situation.
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