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A lawyer seeks clarification on when to tax fees for services rendered in previous years that are collected following judicial action. The DGT rules that, as the cash basis of accounting was not chosen, the Corporate Tax rules for instalment sales apply.
This ruling clarifies the timing of tax liability for professional fees involving deferred payments, confirming that the accrual method for instalment sales applies unless the cash basis is specifically elected.
The tax team reviews your specific situation.
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