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A query was raised regarding whether using money from protected assets to cover the expenses of a person with a disability constitutes a disposal act that would require the repayment of tax benefits. The Directorate General for Taxes (DGT) has determined that such expenditure is not considered a disposal of assets or rights for the purpose of the four-year maintenance requirement.
This ruling provides legal certainty for those managing protected assets, ensuring that essential spending for the beneficiary's welfare does not trigger the clawback of tax incentives.
The tax team reviews your specific situation.
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