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A taxpayer has requested clarification on how to tax productivity bonus payments received following a court ruling. The DGT has determined that these amounts must be attributed to the tax year in which the ruling becomes final and that the 30 per cent reduction is not applicable.
This ruling clarifies the timing for tax reporting productivity bonuses won through litigation, confirming they belong to the year the judgment is final rather than the year the work was performed, and disqualifies the 30 per cent reduction.
The tax team reviews your specific situation.
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