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A lawyer seeks advice on whether fees from long-running legal proceedings should be taxed in the year they are collected or spread over time. The DGT rules that, unless the cash basis is chosen, the accrual basis must be applied.
This ruling clarifies the timing of tax liabilities for professionals with long-term service contracts, reinforcing the requirement to use accrual accounting unless specific cash-basis options are elected.
The tax team reviews your specific situation.
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