ILO Newsletter 07/12/2013

Insolvency & Restructuring

Supreme Court clarifies application of real estate income tax following insolvency

Following the 2012 introduction of a tax on capital gains realised from the sale of real estate by individuals, one issue remained unclear - the question of who must pay if the property owner is insolvent, the property is sold in connection with the insolvency proceedings and the sale proceeds are transferred to pledgees. A recent Supreme Court decision provides clarification in this regard. 


Dr. Alexander Isola

M.C.J. (NYU) Partner