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A self-employed individual must repay Social Security subsidies that were incorrectly applied. The DGT clarifies that these expenses must be attributed to the financial years in which the original accruals occurred, rather than the year in which the payment is made.
This ruling clarifies the timing for reporting adjustments related to Social Security contributions for the self-employed, ensuring consistency with accrual accounting principles unless the cash basis is specifically chosen.
The tax team reviews your specific situation.
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