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The taxpayer asks when income from a lease that was unpaid and treated as a bad debt must be declared. The DGT rules that if it was deducted as an expense at the time, it must be accounted for as income in the tax year in which it is collected.
This clarifies the timing of tax liability for landlords recovering previously written-off rental income, ensuring consistency with the principle of tax deduction.
The tax team reviews your specific situation.
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