This rule outlines the tax treatment for compensations involving an Incorporated Body, referencing Article No. 3 of the Executive Regulations. It differentiates between received and paid compensations. Received compensations from increased costs are recognised in the year received, affecting profit or loss calculations. Compensations for other reasons, like delays, are treated as contingent revenue. Paid compensations for work carried out by third parties are allowed as expenses, whereas penalties paid due to the Incorporated Body's own mistakes are not deductible. Special cases require consultation with the Tax Department.