National Supreme Court of Justice, 03/02/2011, “Astra CAPSA (TF 19.173-I) vs. DGI”

The National Supreme Court of Justice determined that payments made to control an accident in an oil well under exploration shall not be construed as extraordinary losses in the terms provided under Section 82, subsection c) of the Income Tax Law, and therefore will not be considered deductible under this section. Nonetheless, these payments shall be considered deductible as necessary expenses in order to obtain, maintain and preserve profits (Section 17 of the Income Tax Law). This deduction must be made effective in the fiscal year in which the impossibility of the economical exploitation of the income source is determined.