Tax ‘Loophole’ to Be Restricted for Companies

The article explains that the proposed reform would limit the tax effect of in-kind contributions derived from accounts receivable or debt, by establishing that accrued but unpaid interest and the associated VAT would not be considered capital contributions until actually paid.

Christian Kaye notes that the change would restrict the ability to increase the CUCA through this type of transaction and considers it a tightening of tax rules for companies and investors.

Read the full article here.