Forgiveness of a debt and the territoriality principles

Resource Information

The work Forgiveness of a debt and the territoriality principles represents a distinct intellectual or artistic creation found in International Bureau of Fiscal Documentation. This resource is a combination of several types including: Work, Language Material, Continuing Resources.

Label

Forgiveness of a debt and the territoriality principles

Creator

• Waardenburg, D.A. van

Subject

• case law
• territoriality principle
• waiver of a debt

Summary

Decision of the Supreme Administrative Court (Conseil d'Etat) nos. 39, 415 and 40, 744 of 15 October 1986. In a recent case, a French company made substantial interest-free loans from 1967 to 1972 to a Dutch holding company of which it was a 50% owner. In 1972 the French company agreed to covert the full amount of the loans into capital of the holding company. The day after the conversion of the loans into shares the French company turned around and sold all its shares in the Dutch holding company at a substantial loss. The French company wanted to deduct the loss as a short-term capital loss because the conversion and subsequent sale occurred over a two-day period. The Supreme Administrative Court agreed with the tax authorities and refused to allow the deduction of the loss

Citation source

In: European taxation. - Amsterdam. - Vol. 27 (1987),

Geographic coverage

European Union

Language note

English