Doctrine by topic · DGT Observatory

Tax Fraud or Evasion: DGT doctrinal evolution

How the DGT's position on this topic has evolved, and the rulings it rests on.

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How the DGT's position has evolved

Refined position High confidence 8 rulings · 2015–2026

Current position

To apply the tax neutrality regime in mergers, the operation must be carried out within a commercial context and must not have tax fraud or evasion as its main objective. The absence of valid economic motives creates a presumption of fraud, but the Administration must prove, through a global and case-by-case examination, that such objective is the primary one. The existence of tax loss carryforwards does not invalidate the regime if the merger benefits the resulting activities and does not seek the exploitation of said losses as its preponderant purpose.

The DGT's position remains constant in requiring valid economic motives to avoid the application of Article 89.2 of the Law on Corporate Tax (LIS). The evolution shows an important nuance regarding the burden of proof, establishing that the lack of economic motives allows for a presumption of fraud, but requires a global analysis to confirm that this is the main objective. It is confirmed that the mere existence of tax loss carryforwards is not sufficient grounds to deny the regime.

Turning points

  1. V0865-24

    Establishes that the absence of economic motives constitutes a presumption of fraud, but requires a global examination to prove that this is the main objective.

Analysis based on 7 of 8 rulings with a stated position. Updated 30 September 2026.

Rulings on this topic

8
V5498-26 28 Aug 2026

Tax neutrality may apply to reverse mergers if valid economic reasons exist

SG de Impuestos sobre las Personas Jurídicas
fusión inversaneutralidad fiscalbases imponibles negativasmotivos económicos válidosreestructuración societaria LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 17.3LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 17.4
Affects CompanyExpat · Non-residentIndividual
V5443-26 6 Aug 2026

Tax neutrality regime applicable to mergers by absorption if LIS requirements are met

SG de Impuestos sobre las Personas Jurídicas
fusión por absorciónneutralidad fiscalmotivos económicos válidosreestructuración empresarialvalor de mercado LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 17.3LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 17.4
Affects CompanyExpat · Non-residentIndividual
V2348-25 3 Dec 2025

Requirements for claiming tax neutrality in absorption mergers

SG de Impuestos sobre las Personas Jurídicas
fusión por absorciónneutralidad fiscalrégimen especial de fusionesvalor de mercadofraude o evasión fiscal LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 17.3LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 17.4
Affects CompanyExpat · Non-residentIndividual
V2152-15 14 Jul 2015

Special merger regime applicable if operation has valid economic reasons

SG de Impuestos sobre las Personas Jurídicas
régimen especial de fusionesmotivos económicos válidosmodificaciones estructuralesneutralidad fiscalfraude o evasión fiscal LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 76.1.aLIS — Ley 27/2014 del Impuesto sobre Sociedades art. 89.2
Affects CompanyExpat · Non-residentIndividual

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