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V0625-24 11 April 2024 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · pérdida patrimonial

Amount stolen in a fraud may constitute a capital loss if properly justified

A taxpayer has enquired whether funds lost due to fraud can be treated as a capital loss for 2023 Personal Income Tax (IRPF). The Directorate General for Taxes (DGT) has ruled that it does constitute a capital loss, provided it is adequately justified and taxed in the year the event occurred.

The question raised

Possibility of considering a loss of assets to exist for Personal Income Tax (IRPF) 2023.

The DGT's ruling

The amount misappropriated through fraud constitutes a loss of assets as it represents a variation in the value of the estate. For its calculation, the loss must be justified by means of evidence admitted under Law. The loss must be attributed to the tax period in which the change in assets occurs and, as it does not derive from a transfer, it is integrated into the general taxable base. If the money is recovered, such recovery will have tax implications by restoring the asset balance.

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