2024 is proving to be a year of change for companies that use holding companies as part of their structure. Recent TEAC rulings have put the spotlight on restructuring operations, and family and corporate companies are under the spotlight.
Understanding the new criteria is the key to avoiding problems
The TEAC’s message is clear: it is not about demonising holding companies, but about regularising operations that really represent a tax abuse. When a holding company acts as a mere vehicle for channelling dividends for personal use, the tax authorities act. But if the dividends are reinvested in business assets, the scenario is completely different.
The intention of the tax authorities is not to prosecute all companies, but to focus on cases where corporate structures are used to avoid tax improperly.
The importance of tax planning
Proper planning is more important than ever. Companies with a sound investment plan and a clear structure are less likely to face problems. This not only avoids conflicts with the tax authorities, but also enhances long-term stability and growth.
For example, reinvesting dividends in business assets, expanding shareholdings or developing new projects are strategies that strengthen a holding company’s tax position. Conversely, using dividends for personal investments, such as investment funds, can open the door to penalties and adjustments.
What companies must do now
- Audit your current structure : Identify possible areas of risk in the use of holding companies.
- Define a sound investment plan: Channelling resources into business activities with clear objectives.
- Consult with experts: Specialised advisors such as Confianz can offer practical solutions adapted to each case.
- Ensure clear documentation: Keeping records of all business transactions and decisions is essential to demonstrate legitimate intentions.
At Confianz, we understand the complexities of the new tax landscape and have successfully completed over 400 business restructurings. Our focus is http://www.confianz.esnot just on helping you comply, but on strengthening your business.
The combination of strategy, planning and a thorough analysis of your business structure is the key to minimising risks and maximising profits. If you want to be prepared for the challenges of 2025, we are here to help.