Long term capital gains, reclassification of portfolio stocks and shares

In a recent directive dated July 18, 1995 (4B-4-95), related to the setting up of the new regime for the taxation of long term capital gains, the Tax Authorities provided for the following:

- extension of the tax neutralization principle of the reclassification of portfolio stocks and shares to operations realized in 1994 if their objet was to correct accounting errors;

- granting of an extension of the deadline to next October 31 so that companies could be able to operate reclassifications during the 1995 tax year.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be brought about your specific circumstances. For additional information contact Claire Acard on 33/(1)/ or Lionel Benant on 33/ or enter text search: "ARCHIBALD ANDERSEN Profile". The members of ARCHIBALD ANDERSEN Association d'Avocats (S.G. Archibald and Arthur Andersen International) are registered with the Hauts-de-Seine Bar and the Lyon Bar.