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A query was raised regarding whether using funds to cover the essential needs of a person with a disability constitutes a disposal of assets that would require the repayment of tax benefits associated with protected assets. The Directorate General for Taxes (DGT) ruled that such expenditure should not be considered a disposal for the purposes of the four-year maintenance requirement.
This ruling provides legal certainty for persons with disabilities, ensuring that funds used for vital subsistence do not trigger the clawback of tax incentives related to protected assets.
The tax team reviews your specific situation.
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