The background to tax appeal 127TACD2022 was that the Appellant held eleven shares in a trading company (“TradeCo”), with his wife holding the remaining one issued share. On 1 November 2011 the Appellant’s son incorporated a new company (“HoldCo”). On 29 November 2011 HoldCo acquired six of the appellant’s eleven shares for €700,000 (although the payment of that €700,000 was not made until 2013 (it would seem that the funds were retained in TradeCo until that time and then distributed to HoldCo to fund the payment). Also on 29 November 2011 the Appellant transferred his remaining five shares (valued at €583,335) and his wife transferred her one share to HoldCo as part of a share-for-share exchange with HoldCo, with the Appellant being issued five new HoldCo shares and his wife one new HoldCo share.
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