The draft Finance Bill for 2006 was submitted to the parliament on 29 September 2005. It is expected to be approved before the end of 2005.
"Dividend washing" transactions produce a double tax benefit, based on a combination of the exemption regime for dividends and the deductibility regime for capital losses, for shares that do not qualify for participation exemption.
The draft contains, among others, an important modification to the regime for capital losses to curb suc…