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A taxpayer inquired about when money lost in a suspected investment scam can be declared as a capital loss. The DGT ruled that such a loss can only be recognised when the specific circumstances of overdue and uncollected debts, as provided by law, are met.
This ruling clarifies the strict criteria for recognising capital losses resulting from investment fraud, limiting the ability to claim losses unless they qualify as uncollected debts under specific legal conditions.
The tax team reviews your specific situation.
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