Document ID: chunk:federal_register_of_legislation:C2016C00969:section:5:p3
Version: federal_register_of_legislation:C2016C00969
Segment Type: section
Provision Reference: s 5 (pt 3/5)
Character Range: 18411–20938

in this subsection also referred to as the relevant head trust income) of the income of the head trust referred to in that subparagraph was paid or applied as mentioned in that subparagraph as a result of the relevant scheme or as a result of any act, transaction or circumstance that occurred as part of, in connection with or as a result of the relevant scheme; and
 (e) in a case to which subparagraph (b)(iii) applies—the vested and indefeasible interest of the trustee of the sub‑trust in the whole or a part (which whole or part is in this subsection also referred to as the relevant head trust income) of the income of the head trust referred to in that subparagraph arose out of the relevant scheme or arose by reason of any act, transaction or circumstance that occurred as part of, in connection with or as a result of the relevant scheme;
the following provisions have effect:
 (f) the primary taxable amount referred to in paragraph (a) shall be reduced by so much of that amount as is attributable to the relevant head trust income;
 (g) a primary taxable amount equal to the amount of the reduction referred to in paragraph (f) shall be taken to exist in relation to the trustee of the head trust in relation to the relevant year of income.
 (3) Where, but for this subsection, 2 or more primary taxable amounts (in this subsection referred to as the original taxable amounts) would be taken to exist in relation to the trustee of a trust estate in relation to a year of income in relation to a tax avoidance scheme by reason of the application of subsection (1) or (2):
 (a) the original taxable amounts shall not be taken to exist; and
 (b) a primary taxable amount equal to the aggregate of the original taxable amounts shall be taken to exist in relation to the trustee of the trust estate in relation to the year of income.
 (4) For the purposes of paragraphs (1)(c) and (2)(e), but without limiting the generality of those paragraphs, where:
 (a) a tax avoidance scheme was entered into at or after the time when a person became a beneficiary of a trust estate; and
 (b) the amount (in this subsection referred to as the increased amount) of the income of the trust estate in which the beneficiary had a vested and indefeasible interest exceeds the amount (in this subsection referred to as the original amount) of the income of the trust estate in which the beneficiary would have had, or could reasonably be expected to have had, a vested and indefeasible interest if the tax avoidance scheme had not been