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A taxpayer inquired whether the objective estimation method could be applied to tree cutting and sales activities, and if a reduction for irregular income could be claimed. The DGT ruled that the objective estimation method is permissible provided the income limit is not exceeded, but the reduction for irregular income cannot be applied as the activity is considered habitual.
This ruling clarifies the eligibility criteria for the objective estimation method in the forestry sector and confirms that regular forestry activities do not qualify for irregular income tax reductions.
The tax team reviews your specific situation.
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