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Tax & Legal

Tax & Legal

Commercial transactions between friends; recognition of losses


On 8 November 2017 the Supreme Tax Court published a decision made on 9 May 2017 on a case involving a gratuitous share transfer between friends, where the transferor had significant acquisition costs. The Court held that the presumption of a commercial transaction is not rebutted purely because a friendship exists between the contracting parties. Continue reading

Benefit from employee shares to be measured on contract date


The Supreme Tax Court has held that the benefit from the grant of employee shares is to be based on the value of the shares on the date the transfer agreement became binding on both sides. It also held that there was no automatic presumption that a share transfer to the spouse of an employee was made in consideration for employee services rendered. Continue reading