On 15 and 16 May, the Faculty of Law of the Universitat de València held the tax conference: 'Taxation of business restructuring. Pending issues'.
The directors of the conference, D.F. Alfredo García Prats and Germán Orón Moratal, professors of financial and tax law at the Universitat de València and Jaume I respectively. The two co-directors explained that the reason for this conference was the fact that business restructuring operations involve profound changes in the organisation of companies, which, although necessary to adapt to a constantly changing and highly competitive environment, can be discouraged by the high tax costs of personal income taxation. In fact, the tax component can be an obstacle that hinders or prevents restructuring.
To avoid this, our legal system, under the protection of Community law, defers the taxation of the capital gains generated by such restructuring through a special regime. However, this system attempts to distinguish, in a manner that is not always easy and that gives rise to a large number of cases, between changes that are motivated by genuine economic reasons other than tax savings and those that are motivated solely by the aim of postponing their taxation "sine die". This controversy, although longstanding, is always topical and is projected both in the field of administrative control and in judicial practice.
