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The taxpayer asks whether the sale of shares acquired 40 years ago is exempt or subject to reductions, and how bonus shares are taxed. The DGT responds that the reductions of the ninth transitional provision apply and that fully bonus shares do not constitute income, but rather a redistribution of the acquisition cost.
Question raised 1) Whether a future sale would be exempt from taxation, given that a certain number of years have passed since its acquisition, or whether a reduction applies to the capital gain obtained.
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