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A company requested clarification on whether it could linearly distribute the impairment loss of certain properties over the 2008 to 2014 financial years. The Directorate General for Taxes (DGT) ruled that impairment losses must be recognised in the financial year in which the impairment occurs.
Companies cannot spread impairment losses over several years to smooth earnings; they must be recorded immediately in the period the loss is identified.
The tax team reviews your specific situation.
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