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A taxpayer inquired about how to regularise their situation after receiving refunds for floor clauses that had previously been used to claim home investment deductions. The DGT ruled that while the refund does not form part of the taxable base, amounts unduly deducted in non-prescribed tax years must be added to the net tax liability.
Taxpayers who previously claimed deductions for home investment based on floor clause payments must now adjust their net tax liability for any non-prescribed years where incorrect deductions were made.
The tax team reviews your specific situation.
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