Non-deductibility of the current account deficit within an SCI as a liability of the estate

Following the death of a taxpayer who held the usufruct of shares in an SCI, his heirs reported a debt—corresponding to the debit balance of the taxpayer’s partner current account within the SCI—as a liability of the estate and on the wealth tax return for the year of the taxpayer’s death.

administration determined that, pursuant to Article 773(2)(1) of the General Tax Code, this debt was not deductible because it was a debt incurred "by the decedent for the benefit of his heirs or intermediaries."

In its ruling of November 26, 2025, the Court of Cassation first notes that there is a simple presumption, based on Article 911 of the Civil Code, that“the father and mother, children and descendants, as well as the spouse of the incapacitated person” are considered intermediaries.

It notes, however, that this simple presumption does not rule out the possibility that a legal entity might be considered a front.

The Court finds that the Court of Appeals was correct in ruling that the deceased’s account receivable in the SCI was, in this case, a debt incurred by the deceased to his heirs through an intermediary, i.e., the SCI, and that it was therefore not deductible.

Commercial Court of Cassation, Nov. 26, 2025, No. 23-23.086, Published

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