Questions about the collection of arrears due to a court ruling
Posted: Mon Dec 23, 2024 8:47 am
The collection of arrears due to a court ruling is an issue that causes many a headache for many taxpayers. We know that, if there is no ruling, these amounts are charged to the year in which they were payable. If there is a ruling, they are charged to the year in which it was final. But it may also be the case that there is a ruling, but they are not collected in that same year. What would happen then?
If the income from work is not received in the year in which the court ruling became final because the company has not paid it, it will not be phone number directory singapore included in the income of the year in which it is collected. It must be imputed to the declaration of the year in which the ruling became final through a supplementary declaration . This declaration must be made within the period between the date on which the income is received and the end of the immediately following period for filing income tax returns.
By applying the special rule of temporary imputation, if income corresponding to a generation period of more than two years is included in the declaration of a financial year, the reduction percentage of 40% will be applicable to it (article 14.2 b of the Personal Income Tax Law). This incentive aims to soften the effect on Income of the accumulation of income that, if declared in the corresponding financial years, would have been less. However, in the situation raised, certain nuances are possible.
It should be noted that this reduction cannot be applied when, in the five previous tax periods, the taxpayer has obtained other generation income in more than 2 years to which the reduction has been applied.
If the income from work is not received in the year in which the court ruling became final because the company has not paid it, it will not be phone number directory singapore included in the income of the year in which it is collected. It must be imputed to the declaration of the year in which the ruling became final through a supplementary declaration . This declaration must be made within the period between the date on which the income is received and the end of the immediately following period for filing income tax returns.
By applying the special rule of temporary imputation, if income corresponding to a generation period of more than two years is included in the declaration of a financial year, the reduction percentage of 40% will be applicable to it (article 14.2 b of the Personal Income Tax Law). This incentive aims to soften the effect on Income of the accumulation of income that, if declared in the corresponding financial years, would have been less. However, in the situation raised, certain nuances are possible.
It should be noted that this reduction cannot be applied when, in the five previous tax periods, the taxpayer has obtained other generation income in more than 2 years to which the reduction has been applied.