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A taxpayer inquired whether they could claim a tax reduction for compensatory pension payments when paying the pension of their deceased father's ex-spouse, or if this should be treated as a capital loss. The Directorate General of Taxes (DGT) ruled that the reduction in the taxable base can indeed be applied to amounts paid in compliance with a court ruling.
This ruling clarifies that heirs fulfilling court-ordered compensatory pension obligations for a deceased spouse can benefit from tax reductions rather than being forced to treat such payments as capital losses.
The tax team reviews your specific situation.
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