Ruling from the Supreme Court dated 30 November 2020 determines when does the statute of limitations start running for donation tax on a given donation made through a bank transfer and such only being disclosed on the relevant bank statement.
The Supreme Court highlights the fact that the donation tax regulation states that privately documented donations, i.e. not before a Notary Public, statute of limitations starts running since they are first disclosed before a public registry, death of one of the parties or disclosure to a public servant.
The Supreme Court deems that such regulation contravenes what is provided in the General Tax Law where it sets such running period to begin one month after the day the transfer is made, hence, after the first 30 working days since the transfer has been done – which is the voluntary period to disclose the donation – the statute of limitations will start to count and after four years it will be deemed to have fallen under the statute of limitations.