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A trainee civil servant has requested clarification on how to tax back pay received in 2015 following a 2012 court ruling. The DGT indicates that amounts relating to the period prior to the ruling are attributed to the year the judgment becomes final, while subsequent amounts are attributed to the year they became due.
This ruling clarifies the temporal attribution of income derived from judicial settlements, distinguishing between amounts owed prior to a final judgment and those arising after it.
The tax team reviews your specific situation.
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