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A company has requested clarification on whether the difference between a redundancy payment and legal costs paid in 2016 should be deducted in that financial year or in 2012. The Directorate General of Taxes (DGT) has ruled that they may be deducted in 2016, provided that their accounting attribution in that year does not result in a lower tax liability than would be required under accrual rules.
The tax team reviews your specific situation.
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