B55/1994 REPLACEMENT ATTACHMENT PAGES TO THE TRUSTS AND PRIVATE COMPANY ASSESSMENT PROCEDURES DI-B51/94

DATE OF ISSUE: 18 NOVEMBER 1994

REPLACEMENT ATTACHMENT PAGES TO THE TRUSTS AND PRIVATE COMPANY ASSESSMENT PROCEDURES DI-B51/94

Note: Could you please replace the attachment pages of the "Trusts and Private Company Assessment Procedures" Departmental Instruction-B51/94 distributed on 2 November 1994, with the Attachment pages that are attached.

(ATTACHMENT A).

Name: ............................................................................ File No:........................

Note - please provide details for all associated entities, including non trading corporate trustees.

*Name of private company or family trust*	*Shareholder/* *Beneficiary*	No of shares/units each	*Type*eg Class A,B,C etc	*voting* *rights* *Y/N*	*income* *rights* *Y/N*	*asset* *rights* *Y/N*	*Directors/* *Trustee*	*Current loans TO company/* *trust -* (name of lender, balance of loan, interest rate)	*Loans FROM* *company/trust* (name of debtor, balance of debt, interest rate)	*Name(s) of Associated* *private co (ies) &/or trusts*

Signature.....................................................................

Date ......./......./.......

The information provided on this form is required to assess cases where there is a trust or private company. The information is not usually disclosed.

(ATTACHMENT B)

File Name:File Number:

TRUST PROFILE

The Trust known as ................................................................................. is structured in the following fashion according to the Trust Deed at folio .....

and the information provided at folio ..... .

Trustee: ........................................

Is Trustee a Private Company Yes/No

Income Discretionary/Non-discretionary

Assets — Discretionary/Non-discretionary

Is the vet/partner the only beneficiary? Yes/No

If trust is discretionary, is there a Contingent

Interest? If trust is a Contingent Interest we

cannot hold assets in vet/sps assessment.Yes/No

Is vet employed by the trust?Yes/No

Is partner employed by the trust?Yes/No

Is there a history of Capital payments

or distributions?Yes/No

Gifts/Loans by Vet/partner to trust:Yes/No

If "Yes" what are the amounts and dates of the gift/loans.

Name	Type	Amount	Date	Deeming/Deprivation	Folio
	Gift/Loan			Yes/No
	Gift/Loan			Yes/No
	Gift/Loan			Yes/No
	Gift/Loan			Yes/No
	Gift/Loan			Yes/No
	Gift/Loan			Yes/No

(NB. Loans made after 21.8.90 will attract "Deeming".)

Is there a loan account from the trust

to the vet/partner?Yes/No

Is this account increasing due to payment by

the trust of private expenses? (If "yes" hold as

income.)Yes/No

Comments:.............................................................................................................................................................................................................................................................................................................................................................................................

..............................................................................

Examiner — Verified by Delegate

Date: / / Next Review due / /

(ATTACHMENT B)

PRIVATE COMPANY PROFILE

The Private Company known as ................................................................................. is structured in the following fashion according to the Memorandum and Articles of Association at folio ....... and information provided at folio ....... .

Director/s:.............................................................................................................................................Details of Shares

Number Issued	Type (A,B etc)	Voting Rights	Income Rights	Asset Rights	Par Value	Folio
		Yes/No	Yes/No	Yes/No	Yes/No
		Yes/No	Yes/No	Yes/No	Yes/No
		Yes/No	Yes/No	Yes/No	Yes/No
		Yes/No	Yes/No	Yes/No	Yes/No

Details of Shares held by Pensioners

	Type	Number		Type	Number
Veteran			Partner
Veteran			Partner

Is vet employed by the company?Yes/No — Folio ........

Is partner employed by the company?Yes/No — Folio ........

Is there a history of Capital payments

or distributions?Yes/No — Folio ........

Gifts/Loans by Vet/partner to the company:Yes/No — Folio ........

If "Yes" what are the amounts and dates of the gift/loans.

Name Type Amount Date Deeming/Deprivation Folio

	Gift/Loan			Yes/No
	Gift/Loan			Yes/No
	Gift/Loan			Yes/No
	Gift/Loan			Yes/No

(NB. Loans made after 21.8.90 will attract "Deeming".)

Is there a loan account from the company

to the vet/partner?Yes/No — Folio .......

Is this account increasing due to payment by

the company of private expenses?Yes/No — Folio .......

Do the pensioner/s have the benefit of using company

assets or does the company pay private expenses?Yes/No — Folio .......

(If "yes" further investigation is required.)

Is the pensioner/s principal residence owned by the company?Yes/No — Folio .......

Is there "Security of Tenure"?Yes/No — Folio .......

Is there a Super Fund for the pensioner/s — Yes/No — Folio .......

(If "yes" please note details in comments field.)

Are there any subsidiary or associated companies

or trusts? (If "yes" fill in a separate Profile for each.)Yes/No — Folio .......

Does the company own real estate?Yes/No — Folio .......

(If "yes", AVO valuation required. If already obtained see folio ........)

Comments:

...................................................................................

....................................................................................

Examiner Verified by Delegate

Date: / / Next Review due / /

(ATTACHMENT C)

Family Trust Check List

Client's Name ..............................................................................File Number

Documentation Required for each Trust

Trust Name.....................................................

Required Folio (s)

❏Trust Deeds — Y — N

❏Income Tax Return (each year being reviewed)Y — N

❏Balance Sheet — Y — N

❏Profit and Loss Account — Y — N

❏Depreciation Schedule — Y — N

❏Beneficiaries' Loan Account — Y — N

❏Distribution Statements — Y — N

❏Personal Income Tax Return — Y — N

*Note if the trustee is a private company then documentation will be required as per private companies check-list

If Real Estate held by trust

Required — Folio (s)

❏Rural Property Questionnaire Y — N

❏Council Rate Notice — Y — N

❏AVO valuation on file — Y — N

❏AVO valuation requested — Y — N

Comments _________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Signature ______________________________________________________ Date ____/____/____

(ATTACHMENT C)

Private Company Check List

Client's Name .........................................................File Number ..........

Documentation Required for each Company

Company Name..................................................................................

Required — Folio (s)

❏ Memorandum and Articles of Association — Y — N

❏ Company Income Tax Return (all years being reviewed)Y — N

❏ Directors' Report — Y — N

❏ Balance Sheet — Y — N

❏ Profit and Loss Account — Y — N

❏ Depreciation Schedule — Y — N

❏ Shareholders' Loan Accounts — Y — N

❏ Schedule of current shareholders — Y — N

(Including number of shares issued, number of shares held and their rights)

❏ Statement of Sources and application of funds document — Y — N

❏ Personal Income Tax Return — Y — N

If Real Estate held by company

Required — Folio (s)

❏Rural Property Questionnaire Y — N

❏Council Rate Notice — Y — N

❏AVO valuation on file — Y — N...

❏AVO valuation requested — Y — N

Comments

___________________________________________________________

Signature _________________________________________________________Date ___/___/___

(ATTACHMENT D)

Private Company Calculation Sheet

Name ...............................................................................................File Number:............

Name of Company ......................................................................................

(If more than one company, use a separate sheet.)

Using the "Net Asset Backing Method" to calculate the value of a private company share, the following information is required from the latest Income Tax Return and AVO valuation.

(A)Total Assets$____________(Folio .....)

(B)Total Liabilities (including Par

Value shares)$____________(Folio .....)

(C)Number of shares issued with

rights to capital upon wind-up

as per the Memorandum and

Articles of Association $_____________(Folio .....)

(D)Number of shares held by

veteran and/or partner with

rights to capital upon wind-up — _____________(Folio .....)

(E)Dividend and/or income paid — _____________(Folio .....)

(F)Number of shares entitled to

receive dividends _____________(Folio .....)

(G)Number of shares held by

veteran and/or partner entitled

to receive dividends _____________(Folio .....)

Calculation

Total Assets:$

Less Liabilities:$____________

Net Assets

Divided by the number of shares with

rights to capital upon wind-up — _____________

Equals(H)$per share

NB. You must use the actual value for assets not book value. If company owns property, valuations must be obtained. If Written Down values for plant and machinery appear low, ask for "Market Values".

For assessment purposes we insert the value and number of shares held on the "Other Shares" screen. ie.

(D) x (H)= Asset value

Income is calculated by dividing the dividend paid by the number of shares entitled to participate in the receipt of any dividend.

(E) __________ x (G) .................= ............................. divided by 26

(F)

= income per fortnight

....................................... Examiner

/ /

(ATTACHMENT E)

ASSESSABLE ASSET CALCULATION SHEET

Name: ................................................................................................................................ File No:

Property Address: ..........................................................................................................

% Ownership:Veteran: %; Partner: %

If Primary Production is the major portion of the venture then figures at "B" to "I" may be shown as a negative value.

Part 1

Total value of property:(A)$(Folio .....)

Less Value of Home & Curtilage:

(If Principal place of residence)$___________

Value of Pensioner/s assessable asset =(B)$

Go to Part 2 if property is mortgaged. (This does not apply if Primary Production is the major portion of the venture.)

Part 2 (Apportionment of Mortgage)

Total Amount of Mortgage(C)$(Folio .....)

Net Value of Assessable Asset(B) - { (B) x (C) }

(A)

$ ________ - { ________ X ________ }

= Net Value of Assessable Asset.(D)$

Go to Part 3 if property not wholly owned by vet and/or partner

Part 3

(B) or (D) (Whichever is applicable )

X % Ownership divided by 100$_________x_______

100

Net Value of Assessable Asset (Property)=(E)$

Go to Part 4 if Plant and machinery and/or livestock are included in assessment

Part 4

a) Plant and Machinery$

Less liabilities$_____________

= Net Asset value(F)$

b) Stock/Livestock$

Less liabilities$_____________

= Net Asset value(G)$

Go to Part 5 If Plant and Machinery and/or livestock are not wholly owned by vet and/or partner

Part 5 - (Apportionment of Plant and Machinery and Livestock)

a) (F) x % Ownership divided by 100$ ___________ x ___________

100

= Net value of Plant and Machinery(H)$

b) (G) x % Ownership divided by 100$ ___________x ___________

100

= Net value of Stock/Livestock(I)$

Net Value of Assessable Asset at (B), (D) or (E) as above$ +/-

Plus Net Asset value of Plant and Machinery at (F) or (H)$ +/-

Plus Net Asset value of Stock/Livestock at (G) or (I)$___________ +/-

TOTAL VALUE OF PROPERTY$

Comments: ......................................................................................................................................................................

..........................................................................................................................................................................................

Examiner Date / /

Source URL: https://clik.dva.gov.au/compensation-and-support-reference-library/departmental-instructions/1994/b551994-replacement-attachment-pages-trusts-and-private-company-assessment-procedures-di-b5194