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V1129-14 22 April 2014 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · plusvalía tácita

Ghost gains do not prevent loss allowance on group shareholdings

The query asks how ghost gains and expert reports affect the deduction for deterioration of group entity shareholdings. The DGT clarifies that the deduction is based on changes in shareholders' equity, and post-acquisition ghost gains are not taken into account for this regime.

The question raised

Given that the report prepared by an independent expert estimates that the net asset value of the assets of company A amounts to a certain amount as a consequence of the existence of an implicit capital gain in part of its assets, what effect would said report and said implicit capital gain have when determining whether or not the accounting income derived from the reversal of the provision for impairment of securities, made as of January 1, 2008, should be classified as taxable income. And based on its classification, whether or not it is appropriate to make an extra-accounting adjustment in the Corporate Tax return for the 2012 fiscal year.

The DGT's ruling

To apply the special regime for the deduction of impairment of holdings in group entities, the difference in equity must be adjusted for the implicit capital gains existing at the time of acquisition that persist in the valuation. The fact that an asset is subsequently revalued generates a new implicit capital gain that must not be taken into account for this calculation. Likewise, the amounts deducted shall be integrated as a positive adjustment when the equity at the close exceeds that at the beginning.

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