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An electric power company enquired whether payments received in 2019 due to settlements for the 2017 and 2018 financial years should be subject to the 2019 IVPEE. The DGT ruled that they do not form part of the 2019 taxable base as they correspond to production from previous years.
This ruling clarifies the temporal scope of the IVPEE, ensuring that retroactive settlements based on prior years' production are not taxed in the current period.
The tax team reviews your specific situation.
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