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Gifting rules for trusts and companies 043-04080000

Pre 1 January 2002 Trust and Company gifting rules scenarios

Table 1

Scenario	What happened 1/1/2002	Outcome
Customer gifts assets to a non-assessable entity pre 1/1/02	Customer is attributed with control as at 1/1/02	Gift no longer maintained to the extent that the customer is a controller
Customer gifts assets to a non-assessable entity pre 1/1/2002	Customer is attributed with control as at 1/1/02 but between 1/1/02 and 31/3/02 resigns control of the entity	Gift is recorded on the Gift/Deprived Asset (GIFT) screen from the date that customer resigns control. Start date is the date of the original gift.
Customer gifts assets to a non-assessable entity pre 1/1/02	Customer is attributed with control as at 1/1/02 but after 1/1/02 winds up the entity and distributes it to themself	Gift not maintained to the extent that the customer is a controller and subsequent wind up does not change this

Post 1 January 2002 Trust and Company gifting rules scenarios

Table 2

Scenario	What happened 1/1/2002	Outcome
Customer gifts assets to an entity post 1/1/02 in which they are a controller		Gift not maintained to the extent that the customer is a controller
Customer gifts assets to an entity post 1/1/02 in which they are not a controller	Customer is attributed with control of the entity after the gifting (i.e. not at the time of, or as a result of the gifting)	Gift is still coded from the date that customer gifts i.e. start date is the date of the original gift
Customer gifts assets to an entity post 1/1/02 in which they are a controller	Customer is attributed with control post 1/1/2002 but subsequently resigns control of the entity	Deprivation is first assessed from the date the customer resigns control of the entity. The deprivation amount is based on the value of the entity at that time.
Customer gifts assets to an entity post 1/1/02 in which they are a controller	Customer is attributed with control post 1/1/02 but subsequently winds up the entity and gifts to non-controllers	Gift by controllers to non-controllers on wind up maintained for five years - code on the Gift/Deprived Asset (GIFT) screen (i.e. do not maintain original gift)
Customer winds up an entity post 1/1/02 and gifts assets to non-controllers		Gift by controllers to non-controllers maintained for five years - code on GIFT screen
Customer transfers control of entity to non-controllers between 1/1/02 and 31/3/02 and the new controllers wind up entity		Attribute to new controllers and then look at what the new controllers do with the money. No attribution to, or deprivation against, the original controllers
Customer transfers control of entity to children after 31/3/02		Gift by controllers to non-controllers maintained for five years - code on GIFT screen
Customer is assessed as an informal controller because of the size of the loan to an entity. Customer forgives their loan between 1/2/02 and 31/3/02 and therefore surrenders control at that point		No deprivation of entity assets due to Ministerial extension but deprivation related to the forgiveness of the loan is maintained for five years - code on GIFT screen
Customer is assessed as an informal controller because of the size of the loan to an entity. Customer forgives their loan after 31/3/02 and therefore surrenders control at that point		Deprivation of net entity assets plus deprivation of the loan is maintained for five years - code on GIFT screen
Customer is attributed with control post 1/1/02 and also has a loan to the entity. They will be assessed on the assets to the extent of their attribution percentage.	Customer forgives loan to entity i.e. swaps debt (loan) for equity (assets)	Forgiving of loan not maintained as a gift to the extent that the customer is a controller
Customer is attributed with control post 1/1/02 and also has a loan from the entity (asset of entity). They will be assessed on the assets to the extent of their attribution percentage.	Entity then writes off the value of the loan (i.e. asset of the entity written off)	Write off of loan not maintained as a gift to the extent that the customer is a controller