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V2966-19 ·24 October 2019 ·consulta-vinculante Medium impact
Tax

Loss on uncollected debt is recognised one year after the start of judicial proceedings

A taxpayer asks which tax year should be used to report a loss resulting from the failure to recover funds following the rescission of a contract for the sale of a counterfeit painting. The DGT rules that a court judgment does not automatically trigger a loss, but rather creates a credit right that only constitutes a capital loss once it is judicially uncollectible.

In 6 key points

Lifecycle

2019-10-24PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

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This analysis is informational only and does not constitute legal advice or create a client-adviser relationship. BM Consulting.
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