The Federal Revenue Service published Cosit Answer to Advance Tax Ruling Request No. 245 on the transfer of closed-end fund shares by inheritance (or donation) for the amount declared in the individual income tax. The position put forward by the tax authorities was that the taxpayer would be subject to income tax because the transfer of the shares had to be at market value, so that the capital gain earned would be subject to the general rule. This could end up leading taxpayers to seek legal approval for not paying the tax.

In the article published in Valor Econômico, our partner Alamy Candido explained that the Consultation goes beyond the IRPF rule and does not (and could not) change the State rule. “But there is legal backing to discuss the IRPF. The tax authority is interpreting the rule by disregarding a legal basis, which is very serious,” he added.

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