Document ID: chunk:federal_register_of_legislation:C2016C00969:section:5:p5
Version: federal_register_of_legislation:C2016C00969
Segment Type: section
Provision Reference: s 5 (pt 5/5)
Character Range: 23016–24365

present entitlement of the beneficiary to so much of the increased amount as exceeds the original amount shall be taken to have arisen out of the tax avoidance scheme.
 (7) For the purposes of paragraph (2)(d), but without limiting the generality of that paragraph, 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) income of the trust estate was paid to, or applied for the benefit of, the beneficiary and the amount (in this subsection referred to as the increased amount) of that income exceeds the amount (in this subsection referred to as the original amount) that would have been, or could reasonably be expected to have been, paid to, or applied for the benefit of, the beneficiary if the tax avoidance scheme had not been entered into or if an act, transaction or circumstance that occurred as part of, in connection with or as a result of the tax avoidance scheme had not occurred;
so much of the increased amount as exceeds the original amount shall be taken to be income of the trust estate that was paid to, or applied for the benefit of, the beneficiary as a result of the tax avoidance scheme.
 (8) A primary taxable amount may be taken to exist in relation to the trustee of a trust estate notwithstanding that the trust estate has ceased to exist.