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A taxpayer queried how to declare the nullity of subordinated obligations and preferred shares. The DGT clarified that tax returns can be amended to recover tax paid on voided interest, and that statutory interest received due to such nullity is taxed as capital gains.
Taxpayers with voided financial products may be entitled to recover previously paid income tax through amended returns, while ensuring statutory interest is correctly reported as capital gains.
The tax team reviews your specific situation.
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