On 20 June 2007, The Belgian Constitutional Court decided on a preliminary ruling requested by the Court of Appeal Ghent on 20 October 2006 concerning the taxability of lump-sum payments received from a partial repayment of a company's subscribed capital.
(a) Facts. NV Hebalo in 1995 reduced its subscribed capital and paid a lump sum to its shareholders pursuant to a plan for the reduction of its subscribed capital. The company argued that those payments were t…