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V1627-14 24 June 2014 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
ISD · reducción por empresa familiar

Selling a pharmacy at a price substantially lower than its inherited value results in the total loss of the ISD reduction

A query was raised regarding whether selling a pharmacy for a price lower than its inherited acquisition value (with the reduction applied) triggers the loss of said reduction, and whether such loss would be total or proportional. The DGT ruled that such a reduction is substantial and leads to the total loss of the reduction, requiring the payment of the unpaid tax plus interest.

The question raised

Whether this entails the loss of the tax benefit and, if so, whether the loss would be total or proportional to the percentage that the price obtained from the sale represents in relation to the value of the inherited acquisition. Application of the proceeds to a non-depreciable financial asset.

The DGT's ruling

The transfer of a pharmacy at a price 46.9% lower than the actual value of the acquisition with reduction constitutes a substantial reduction in value. This results in the total loss of the right to the reduction applied, as the law does not provide for proportionality. The taxpayer must pay the portion of the tax that was not collected, along with late payment interest. The destination of the funds obtained (for example, investing them in a financial product) is irrelevant to this criterion.

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