Administrative Court,14 June 2023, no. 45759
A redemption of a class of shares followed by a its immediate cancellation should be analyzed as a partial liquidation meaning as a disposal by the shareholder of its participation not subject to WHT.
The qualification of a hidden dividend distribution may still be retained if the redemption price does not correspond to the fair market value of the shares redeemed or if the transaction cannot be justified economically.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
