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A query was raised regarding whether a reduction for compensatory pensions could be applied to the 2012 tax year following a divorce judicially ratified in 2013. The DGT ruled that the reduction is only applicable from the date the divorce decree becomes final.
This ruling clarifies the temporal application of tax deductions for compensatory pensions, establishing that the legal finality of the divorce decree is the determining factor for eligibility.
The tax team reviews your specific situation.
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