Tax Implications of Share-Swap Mergers: Supreme Court Ruling

The Supreme Court has ruled that shareholders who receive shares in an acquiring company under a merger deal may be subject to tax on "notional gains" even if they don't sell the shares. The court held that shares received in a merger are considered "stock-in-trade" and subject to business income tax, rather than capital gains tax. This ruling is feared to spur litigation and could have significant implications for investors and traders.