Administrative Tax Appeals Council rules on taxable capital gains on exchange of shares

In a recently available decision, the second section second chamber of the Administrative Tax Appeals Council (Conselho Administrativo de Recursos Fiscais, CARF) ruled thatcapital gains on exchange of shares are not subject to individual income tax (decision made publicly available on 20 May 2013) when the shareholder receiving new shares in the acquiring company in exchange of his shares in the acquired company does not derive any income from this transaction. Details of the decision are summar…