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V2026-14 28 July 2014 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · consolidación fiscal

Companies in insolvency proceedings may join a tax group if the agreement does not limit management powers

A query was raised regarding whether an entity in insolvency proceedings can be part of a tax consolidation group following the approval of an agreement. The DGT ruled that if the agreement does not impose limitations on the directors' powers of administration and disposal, the insolvency situation is considered resolved.

The question raised

Whether, taking into account the provisions of Article 67.4.b) of the consolidated text of the Corporate Income Tax Law, the insolvency situation was overcome following the approval of the creditors' agreement of the consulting entity, and consequently, both this company and its subsidiaries that meet the rest of the requirements demanded by the applicable regulations may be integrated into the Group.

The DGT's ruling

The exclusion of a tax group due to insolvency proceedings is caused by the loss of the company's capacity to manage its assets and the disappearance of the decision-making unity of the parent company. If the approved agreement does not establish prohibitive or limiting measures on the exercise of the debtor's powers of administration and disposal, there is no loss of capacity. In this case, the insolvency situation is considered overcome and the entity may be integrated into the tax group.

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