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A poultry company has requested clarification regarding the deductibility of losses caused by diseases in its birds. The DGT has ruled that if the birds are classified as tangible fixed assets, impairment losses are not directly deductible, but must be accounted for through the depreciation of the tax difference. Conversely, if they are classified as inventory, the impairment is directly deductible.
The tax team reviews your specific situation.
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