When a foundation inherits shares from a contributor and sells them within the seven-year lock-up period, the resulting contribution gain I (“Einbringungsgewinn I”) is attributed retrospectively to the contributor. The foundation must pay the tax as the contributor’s universal successor. Section 22(6) of the Reorganisations Taxes Act 2006 (RTA) does not govern the personal attribution of that gain: its scope must be narrowed to reflect the provision’s purpose ( so-called teleological reduction)
The Supreme Tax Court has held that the value of a contribution in kind under the Reconstructions Tax Act 1995 as taken up by the recipient is binding on the contributor. Changes in retrospect are binding on both parties.
