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A worker who benefited from an exemption on dismissal compensation was re-employed by the same company within three years. The DGT indicates that this creates a presumption that no genuine termination of employment occurred, requiring the submission of a supplementary tax return including late payment interest.
Employers who re-hire staff within three years of applying a dismissal compensation exemption risk being deemed to have not genuinely terminated the contract, potentially leading to tax liabilities and interest penalties.
The tax team reviews your specific situation.
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