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V3034-19 ·29 October 2019 ·consulta-vinculante Medium impact
Tax

Compensation for financial loss due to professional negligence is taxed as a capital gain

A taxpayer inquired whether compensation received for economic damages caused by a negligent tax advisor is exempt from Personal Income Tax (IRPF). The Directorate General for Taxes (DGT) ruled that it does not qualify as an exemption for personal injury, but rather as a capital gain.

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2019-10-29PublishedPublished 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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