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V0675-16 18 February 2016 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · participaciones preferentes

Income tax refunds may be requested for interest on voided preferred shares

The inquirer asks about the tax implications following the judicial annulment of preferred shares. The DGT explains how to treat the refund of interest, capital gains arising from statutory and compensatory interest, and the treatment of legal costs.

The question raised

Tax implications in Personal Income Tax regarding the declaration of nullity.

The DGT's ruling

Interest received from preferred shares declared null and void may be subject to rectification of the tax return to obtain a refund of undue payments, even if the right has prescribed. Legal and compensatory interest resulting from the nullity are taxed as capital gains and are included in the savings tax base. Procedural default interest also constitutes capital gains. The collection of legal costs constitutes a capital gain due to its restorative nature.

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