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Wealth Transfers, Taxation and the Valuation of Private Firms: A Constitutional Court Decision Regarding the Proportionality Principle

António Martins & Daniel Taborda

European Taxation2026https://doi.org/10.59403/3xcz9j5article
ABDC B
Weight
0.50

Abstract

This note analyses, from a legal and economic perspective, Portuguese Constitutional Court Ruling 750/2022, which declares the legal provision setting out the method for valuing private (unlisted) corporations, for the purposes of the taxation of equity transfers for no consideration, unconstitutional. This valuation method has been the cornerstone of computing tax liability in respect of stamp duty which, in this scenario, works as a tax on wealth transfers. The Court decided that the resulting valuation under the formula was disproportionate, stating that the share values derived therefrom were exorbitant and out of sync with the economic reality of the company.

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https://doi.org/https://doi.org/10.59403/3xcz9j5

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@article{antónio2026,
  title        = {{Wealth Transfers, Taxation and the Valuation of Private Firms: A Constitutional Court Decision Regarding the Proportionality Principle}},
  author       = {António Martins & Daniel Taborda},
  journal      = {European Taxation},
  year         = {2026},
  doi          = {https://doi.org/https://doi.org/10.59403/3xcz9j5},
}

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Wealth Transfers, Taxation and the Valuation of Private Firms: A Constitutional Court Decision Regarding the Proportionality Principle

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0.50

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.50 × 0.4 = 0.20
M · momentum0.50 × 0.15 = 0.07
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

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