Tag: Controlling Interest 

Ownership of more than 50% of a corporation’s voting shares.

Latvia vs SIA „Woodison Terminal”, June 2018, Supreme Court, A420437112, SKA-97/2018

Latvia vs SIA „Woodison Terminal”, June 2018, Supreme Court, A420437112, SKA-97/2018

Determination of the criterion “decisive influence” or controlling interest. There is no basis for a general conclusion that, where two persons have the same ability to influence decision-making, they both exercise joint control. Otherwise, Section 12(2) of the Corporation Tax Act should apply to any case where two or more persons exercise equal control over the management of a company, even if the only way in which decisions could ever be taken in the company is if they are taken in concert. It is not excluded that two persons have established a mechanism for exercising influence on an equal footing precisely in order to ensure that neither has a decisive influence. In order to apply Section 12(2) of the Law on Corporate Income Tax in accordance with its meaning, i.e. to identify cases where the decisive influence of a person has been the basis for entering into transactions which are not in line with market prices, it should be possible ... Read more