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May 15, 2026

Article 133 clarifies how 'control' (defined in Article 132) is identified in practice. A person is deemed to possess rights or powers if: (1) those rights are held by a representative on their behalf, (2) the rights must be exercised according to their direction, or (3) they control the company either alone or together with partners who are relatives up to the third degree (including by marriage). This 'acting in concert' rule prevents taxpayers from masking control by dispersing shareholding among family members or agents, ensuring that the actual controlling interest is recognized for tax assessments.

Part 4 - Avoidance of Double Taxation

Chapter 2 - Tax Avoidance between Persons or By Entering into Transactions

Section 3 - Control of a Company

Article 133

[GTL Notes: Acquisition of Rights / Powers of Control]

For the purposes of this Section, a person acquires rights or powers if:

Such rights or powers are conceded to another person in his capacity as a representative of that person;
Such rights or powers are required to be exercised by another person on that person's direction;
That person controls the company solely or together with one or more partners who are his relatives up to the third degree, whether directly or indirectly related, or connected by marriage.