Off-the-books profits of limited companies: the Supreme Court extends the presumption of distribution to shareholders

The Supreme Court confirms and broadens its case law on the presumption of distribution of unrecorded profits assessed against closely held limited companies: undeclared profits are presumed to have been attributed to the shareholders, unless proven otherwise.

For shareholders of family-owned limited companies the exposure is real: the assessment against the company extends to the individuals. A coordinated defence at both levels becomes essential, together with the counter-evidence (non-receipt, reserves, reinvestments).

Summary note by the CommercialistiAvvocati network, based on specialised legal and practice sources. The text does not reproduce original contributions and does not constitute professional advice.