3 March 2015 / Tax
Successfully represented a Lithuanian real estate developer
Our tax litigation team has successfully represented a Lithuanian real estate developer in a tax dispute. The dispute concerned the exchanges of shares as one of the reorganisation methods. The Tax Authorities declined to allow the full exemption of capital gains taxation since a private shareholder did not obtain full control of the company issuing new shares and acquiring the other one.
However, our tax litigation team has proved that it is only the acquiring company that needs to obtain control of the target in order for the exchange of shares to be exempted. The Tax Authorities ultimately agreed with our arguments and allowed an exemption.