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V3287-20 5 November 2020 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · préstamo participativo

DGT declines to rule on accounting income from participating loan maturity due to doubts over correct accounting treatment

A company sought clarification on whether the accounting income arising from the maturity of a participating loan, acquired during a business purchase, should be included in the tax group's taxable base. Following a report from the ICAC highlighting doubts regarding the economic substance and true and fair view of the transaction, the DGT stated it cannot rule on the tax consequences of operations where correct accounting treatment is uncertain.

The question raised

Whether the accounting income recorded by A upon the maturity of the participating loan would form part of the tax base of the tax group.

The DGT's ruling

The DGT cannot determine the tax consequences of the described operations due to reasonable doubts regarding their correct accounting treatment. The ICAC indicates that a prior analysis of the economic and legal substance is necessary to prevent the appearance of formal agreements from undermining the true and fair view of the annual accounts. Therefore, as there is no certainty regarding the accounting treatment, the body cannot rule on the tax base of the Corporate Income Tax.

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