Document ID: chunk:federal_register_of_legislation:C2016C00969:section:5:p1
Version: federal_register_of_legislation:C2016C00969
Segment Type: section
Provision Reference: s 5 (pt 1/5)
Character Range: 13870–16353

5  Primary taxable amounts
 (1) Subject to subsections (2) and (3), where:
 (a) at any time, whether before or after the commencement of this Act, a beneficiary of a trust estate had a vested and indefeasible interest in any of the income of the trust estate of a year of income (in this subsection referred to as the relevant year of income);
 (b) the beneficiary was not presently entitled to that income but would, apart from this section and subsection 100A(1) of the Assessment Act, have been deemed for the purposes of that Act to be presently entitled to that income;
 (c) the vested and indefeasible interest of the beneficiary in the whole or a part of that income (which whole or part is in this subsection referred to as the relevant trust income) arose out of a tax avoidance scheme, or by reason of any act, transaction or circumstance that occurred as part of, in connection with or as a result of a tax avoidance scheme, entered into on or after 12 May 1982;
 (d) by reason of, as a result of or as part of the tax avoidance scheme or by reason of any act, transaction or circumstance that has occurred, will occur, or may reasonably be expected to occur, being an act, transaction or circumstance occurring as part of, in connection with or as a result of the tax avoidance scheme, the present value of the benefit, or the sum of the present values of each of the benefits, that has or have been, will be, or may reasonably be expected to be, derived by the beneficiary as a consequence of the vested and indefeasible interest of the beneficiary in the relevant trust income is less than 50% of the amount of the relevant trust income; and
 (e) by reason that the beneficiary would, apart from this section and subsection 100A(1) of the Assessment Act, have been deemed for the purposes of that Act to be presently entitled to the relevant trust income, the trustee of the trust estate would not have been liable to be assessed and to pay tax under section 99 or 99A of that Act in respect of the net income or a part of the net income (which net income or part is in this subsection referred to as the relevant amount) of the trust estate of the relevant year of income;
the following provisions have effect:
 (f) the beneficiary shall, for the purposes of the Assessment Act other than sections 99 and 99A, be deemed not to be, and never to have been, presently entitled to the relevant trust income;
 (g) a primary taxable amount equal to the relevant amount shall