Conversion of preference shares into ordinary shares through mandatory conversion pursuant to the terms of the articles of association is not regarded as a taxable sale according to an advance tax ruling
decided by the Swedish Council for Advance Tax Rulings
on November 7, 2008, which was upheld by the Swedish Supreme Administrative Court in a judgment on May 14, 2009.
Starting with 1991 this board has been transformed into a semi-judiciary independent body named the Council of Advance Tax Ruling
. To the Swedish AIFS procedure both the tax payers and the National Fiscal Committee may apply.
The changes include the introduction of a formal advance tax ruling
procedure and a step up opportunity on certain conversions of a corporation into a partnership but eliminating at the same time a loophole in the international participation exemption.
Advance tax ruling
is a procedure that allows taxpayers to achieve certainty concerning the tax consequences of a contemplated transaction.
The designation is obtained by requesting an advance tax ruling
. The difficulty in making the request or obtaining the ruling is that the term "project" is not defined in the Act and there is no guidance available in opinions, public rulings, published guidelines, and, arguably, the jurisprudence to aid taxpayers and CRA in making the determination.
Finnish-Swedish IT company TietoEnator Corporation said on Tuesday (6 July) that it had received an advance tax ruling
regarding the parent company asset write-downs booked and announced on 21 April 2004.
The request was for an advance tax ruling
on their plans to move over $2 billion of assets to the US.
On March 8, 1991, a law firm acting for a family trust asked Revenue Canada for an advance tax ruling
to verify that public company shares held within the trust could leave Canada on a tax-free basis.
The Federal Tax Administration (FTA) has for the first time transmitted information on advance tax rulings
to spontaneous exchange of information partner states.
It said common features of deals arranged by PwC that it investigated saw the companies all set up subsidiaries in Luxembourg where they were protected by advance tax rulings
from the authorities.
The decision came after the Canadian government stopped providing advance tax rulings
on income trust offerings pending a tax review.
A study conducted by the EU's accountancy lobby group, the Federation des Experts Comptables (FEE), has concluded that advance tax rulings
in the EU often involve different treatment in the various different countries surveyed.