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A query was raised regarding whether it is possible to declare a loss for subordinated financial contributions from a company in insolvency proceedings that has not yet been liquidated. The DGT ruled that the loss can only be quantified once the liquidation phase is finished and the total amount of payments received is known.
Taxpayers holding subordinated debt in insolvent companies cannot claim tax relief for capital losses until the final liquidation process is concluded.
The tax team reviews your specific situation.
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