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V4101-15 ·21 December 2015 ·consulta-vinculante Medium impact
Tax

Sale of premises to related parties to offset debt must be conducted at market value

A company enquired whether selling premises to its related creditors to offset outstanding debt was valid. The DGT ruled that the transaction must be valued at market value and that the accounting result of the sale must be included in the tax base.

In 6 key points

How it affects those involved

Companies must ensure that any asset transfers to related parties used for debt settlement are conducted at arm's length to avoid tax complications.

Lifecycle

2015-12-21PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

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This analysis is informational only and does not constitute legal advice or create a client-adviser relationship. BM Consulting.
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