Immediate taxation of growth fund unit income

ATA/132/1997Court of Justice / Administrative ChamberFeb 19, 1997Confirmed

Extracted by Omnilex

Omnilex summary

The decision holds that income from units in a growth fund is taxable immediately upon realization. The case concerns the timing of taxation only; the court confirms that no deferral applies under the relevant tax rule.

Omnilex headnote

LCP.16; revenu des parts d’un fonds de croissance; moment de la réalisation fiscale. Le revenu provenant de parts d’un fonds de croissance est imposable immédiatement, la réalisation intervenant au moment où le revenu est acquis et non à une date ultérieure. The court thus rejects any postponement of taxation for such fund income.

Full text

Descripteurs

REVENU; IMPOT; MOMENT DE LA REALISATION; FIN

Normes

LCP.16

Résumé

Le revenu des parts d'un fonds de croissance doit être immédiatement imposable.

Keywords

taxationincomerealizationinvestment fundtiming

Extracted by Omnilex

Key legal questions extracted by Omnilex

Key legal question

When is income from growth fund units realized for tax purposes?

Extracted holding

Income from growth fund units is immediately taxable.

Extracted reasoning

The court held that the realization of income occurs immediately, so taxation is triggered without deferral.

Immediate taxation of growth fund unit incomeAI generated