Deprivation calculation for non-allowable loans
This table describes an example of deprivation calculation for non-allowable loans.
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1 |
Customer was a controller of an entity with net assets of $40,000. However, there was a liability of $40,000 secured against the controller's home which was disallowed as per Sec 1208G of the Act. Accordingly the attributed assets were $80,000.
The customer surrendered control after 1/4/02.
Department of Social Services (DSS) have advised gifting applies to the unadjusted amount that is $40,000.
The same principal applies if a loan is disallowed because it is not documented and therefore increases the attributed entity assets. If the customer surrenders control gifting would be assessed based on the net amount before disallowing a non documented loan.
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