THE TAX AUTHORITY FORCED TO REFUND THOUSANDS OF EUROS IN IRS ON INHERITANCES

When children inherit a house, or even several properties, they receive what is called an "inheritance share". When someone bought this "inheritance share", the Tax Authority considered it the same as selling the entire house and, for many years, demanded payment of thousands of euros in capital gains.

Asked by SIC NOTÍCIAS, António Gaspar Schwalbach clarified: "Until now, the Tax Authority considered that the transfer of this 'inheritance share' was equivalent to the transfer of a property". In this sense, "heirs ended up paying IRS as if they had sold the property". However, this situation has ended. The Supreme Administrative Court has just issued a ruling that prohibits the Tax Authority from charging capital gains in these situations. "This is good news", says António Gaspar Schwalbach: "From now on, the Tax Authority is prevented from demanding IRS payment in these circumstances". And he concludes: "Equally important: all taxpayers who, in the past, paid IRS after being required by the Tax Authority to do so can now submit a request for official review, asking for the cancellation of the IRS assessment based on this new jurisprudence".