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A taxpayer operating under the direct estimation method asks how to declare a refund of the 'sanitary cent' received in 2014 for payments made in 2011 and 2012. The DGT rules that supplementary tax returns for previous years are not required; instead, the income must be declared in the current tax year.
This ruling clarifies the timing of tax recognition for retroactive refunds, preventing the need for corrective filings for prior periods.
The tax team reviews your specific situation.
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