Slovenian Supreme Court ruled against the Financial Administration

In January, the Supreme Court ruled against the current case law practice of the Financial Administration (FURS) regarding the consideration of subsequent payments by shareholders in the assessment of personal income tax from capital gains. As of recently, subsequent payments were not taken into account when calculating the purchase price of business shares being disposed. Consequently, the difference between the sales and the purchase price was considerably higher than it would have been, provided the subsequent payments were taken into account when calculating the purchase price of the business share. Therefore, shareholders seemingly realised high capital gains that were subject to personal income tax.

As mentioned, the Supreme Court rulled against such practice. In doing so, it relied in particular on the fact that subsequent payments are equity investments of shareholders, which increase the company’s assets and hence the account value of the business share. Therefore, it is necessary to consider such payments for the purpose of assessing the capital gains tax. The practical consequence of this is that subsequent payments are included in the cost of equity, which reduces the tax liabilities of shareholders in the sale of shares.

Shareholders must therefore properly identify and make all the payments they make to their company, as this can significantly affect the amount of their taxation on the possible sale of business shares.

RELATED POSTS
Legal 500 Ranking

Legal 500 Ranking

We are happy to announce that Sibinčič Novak & Partners has been ranked again bythe Legal 500 among the leading…

Read more
We are expanding our legal knowledge and connections across borders.

We are expanding our legal knowledge and connections across borders.

Sibinčič Novak & Partners has joined Mackrell International Legal Network! A global network of law firms specializing in all fields of law….

Read more
Sibinčič Novak & Partners ranked by the Chambers and Partners among top 11 Law firms in Slovenia!

Sibinčič Novak & Partners ranked by the Chambers and Partners among top 11 Law firms in Slovenia!

We are proud to announce that Sibinčič Novak & Partners has been ranked by the Chambers and Partners Global Guide…

Read more

Address:

Law firm Sibinčič Novak & Partners
Dalmatinova ulica 8
SI-1000 Ljubljana, Slovenia

Company information:

Share capital EUR 10,560

Reg. no: 9575782000

VAT no: SI68184093

District court of Ljubljana