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The DGT responds that dividend receipt by a holding company does not affect the reduction from share donations, provided dividends are reinvested and the exemption in the Wealth Tax is maintained.
Question posed: Whether the projected operation would result in non-compliance with the value maintenance requirement from the perspective of the reduction applied at the time by reason of the donation of shares in the "holding" entity. Confirmation that the dividend received by the "holding" entity may be accounted for for the purposes of the exemption in Wealth Tax. Impact of both market value fluctuations and the temporal deferral of reinvestment in assets on the subsistence of the applied reduction.
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