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A professional inquired as to when back pay deposited in court following a dismissal declared null and void must be declared. The DGT responds that these amounts are imputed to the period in which the judgment becomes final.
Question raised: Temporal imputation of back pay.
Back pay is classified as income from employment. Its temporal imputation must be carried out in the tax period in which the judgment establishing its receipt becomes final. The prior deposit of the amounts in court has no relevance for tax purposes.
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