ICONOS FINALES-TRAZADOS

BASQUE COUNTRY AND NAVARRA: Do you have ongoing litigation?

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If you have any pending litigation, you can account for an expense and anticipate your tax deduction.

BASQUE COUNTRY AND NAVARRA: Do you have ongoing litigation?

If at the end of the financial year your company has any pending judicial or administrative litigation that is likely to result in a payment in the future, you can account for an expense as a "provision for liabilities."

Therefore, it is not necessary to wait for the resolution of the litigation to compute the expense.

What advantages does this have?

By meeting certain requirements, the expense for "provision for liabilities" is tax-deductible. This will allow you to defer part of the Corporate Tax payment, resulting in financial savings.

What happens if you ultimately do not have to make the payment?

If later you are vindicated, the company must account for income at that time and cancel the provision.

And what if you are not vindicated?

It will be sufficient to account for the cash outflow and cancel the recorded provision.

If you have any pending litigation, our professionals will advise you on how to account for the corresponding risk and analyze its tax deductibility.

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