Document ID: chunk:federal_register_of_legislation:C2025C00014:section:102ag:p3
Version: federal_register_of_legislation:C2025C00014
Segment Type: section
Provision Reference: s 102AG (pt 3/5)
Character Range: 809522–812130

subsection (4), if any 2 or more parties to:
 (a) the derivation of the excepted trust income mentioned in subsection (2); or
 (b) any act or transaction directly or indirectly connected with the derivation of that excepted trust income;
were not dealing with each other at arm's length in relation to the derivation, or in relation to the act or transaction, the excepted trust income is only so much (if any) of that income as would have been derived if they had been dealing with each other at arm's length in relation to the derivation, or in relation to the act or transaction.
 (4) Subsection (2) does not apply in relation to assessable income derived by a trustee directly or indirectly under or as a result of an agreement that was entered into or carried out by any person (whether before or after the commencement of this subsection) for the purpose, or for purposes that included the purpose, of securing that that assessable income would be excepted trust income.
 (5) In determining whether subsection (4) applies in relation to an agreement, no regard shall be had to a purpose that is a merely incidental purpose.
 (5A) In the application of paragraph 102AF(1)(b) for the purposes of the application of paragraph (2)(b) of this section in relation to a beneficiary of a trust estate, payments made for services rendered or to be rendered shall not be taken to be employment income unless the services are rendered or to be rendered by the beneficiary.
 (6) Where:
 (a) any assessable income is derived by a trustee of a trust estate from the investment of any property transferred to the trustee for the benefit of a beneficiary of the trust estate by way of, or in satisfaction of a claim for, damages in respect of:
 (i) loss by the beneficiary of parental support; or
 (ii) personal injury to the beneficiary, any disease suffered by the beneficiary or any impairment of the beneficiary's physical or mental condition; and
 (b) that property was transferred to the trustee otherwise than in pursuance of an order of a court;
paragraph (2)(c) applies only to so much (if any) of that assessable income as the Commissioner considers fair and reasonable.
 (7) Where:
 (a) any assessable income is derived by a trustee of a trust estate from the investment of any property transferred to the trustee for the benefit of a beneficiary of the trust estate by another person out of property that devolved upon that other person from the estate of a deceased person and was so transferred to the trustee within 3 years after the date of death of the deceased person; and
 (b) the amount referred to