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A professional inquired whether they could recognise fees for a service provided in 2013 when they finally received part of the payment in 2023 following insolvency proceedings. The DGT ruled that, unless the cash basis has been elected, income must be recognised in the period it is accrued.
This ruling clarifies the obligation for professionals to follow the accrual principle for tax purposes, limiting the ability to defer income recognition to the date of actual receipt unless specific accounting methods are formally adopted.
The tax team reviews your specific situation.
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