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A query was raised regarding whether tax reductions for compensatory pensions and child maintenance could be applied for the 2014 tax year following a regulatory agreement. The Directorate General of Taxes (DGT) ruled that a separation takes effect from the date of the final court decree.
Taxpayers cannot claim tax relief for maintenance or compensatory payments made under a private agreement if those payments precede the formal legal separation decree.
The tax team reviews your specific situation.
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