Partner to the entrepreneur

Distribution of real estate via dividend payment in kind has recently become possible without application of the sales tax!

Until recently, the Flemish Tax Administration argued that the distribution of real estate from a company was subject to the sales tax (12%) when this distribution was charged to the available reserves. Indeed, it argued that this distribution constituted a distribution of dividends in kind and therefore a transfer for consideration. Recently, the Flemish Tax Administration has completely changed its approach, allowing this distribution to be made in certain cases in a much more tax-efficient way, i.e. without application of the sales tax.

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Clarification on estate planning with life insurance contracts and partnerships

In the context of estate planning, accumulated assets can be contributed to a partnership and then reinvested in a life insurance contract. The threat of inheritance tax when the life insurance contract is paid out, casted a shadow over this practice for a while. A recent decision removes these concerns, once more clearing the air for this strategy.

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Tax abuse: one for all, all for one!

Tax abuse often results from a chain of legal acts. Recently, the Court of Cassation was asked whether it is a requirement that the taxpayer formally participates in each part of this chain.

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