Taxation of preferred shares 2014

Taxation of the preferred in the 2014 income tax

The sale of preferred shares has been one of the largest financial scams in the history of this country. Some of these scams have had a happy ending. In other cases, unfortunately, it has either not been the case or is still to be resolved. In this article I will explain how preferred shares are taxed in this year's income tax return according to the legal situation in which we find ourselves.

3 different cases of taxation of preferred shares

The situation of the preferentistas is not the same in all cases, since some have decided to claim judicially, others seek a solution through arbitration and some have not opted for one or the other and have preferred to assume the loss or claim a political solution to this scam. To know how the preferred ones are taxed, we must know in what situation we are of the following:

  • Favorable arbitration award
  • Contract judicially declared void
  • The other cases

Next I will explain the taxation of the preferred in each one of these situations.

Taxation of preferred companies that obtained a favorable arbitration award

Preferred shares that obtained a favorable arbitration award and have received an economic amount must be taxed according to the difference between the money that was invested and the amount that has been recovered through the arbitration.

This amount is declared as negative movable capital yield, which may be offset by positive movable capital yields for this year and for the following 4 years.

Taxation of preferred shares whose contract was declared void

In the case of preferred shares whose contract was declared void by means of a court ruling, they have resulted in an obligation to return the benefits as if the contract had never been entered into.

Therefore, no positive or negative return on movable capital should be reported. The preferentistas, in this case, may submit a request for the refund of undue income to recover the interest taxes that were collected this time and have been declared null.

Taxation of preferred companies in other cases

The situation of the preferred in the other cases, that is, in the cases in which:

  • The preferentists went to arbitration and obtained an unfavorable arbitration award
  • Those who went to trial and obtained an unfavorable sentence
  • Those that are still pending the resolution of the trial or arbitration
  • Those who decided not to go to trial or arbitration

In this case, it must be declared in exchange of the preferred ones for shares as a negative return on capital stock. The value of this negative return is calculated based on the difference between the money invested in the preferred ones and the value of the shares set by the FROB.

In the event that the exchanged shares are sold, the gain or capital loss must also be declared, which will be calculated by subtracting the value price from the value of the shares set by the FROB.

Those who are pending trial or arbitration and finally obtain a favorable resolution, must present a supplementary declaration once the resolution is obtained, excluding declared losses.