Document ID: chunk:federal_register_of_legislation:C2016C00969:section:5:p4
Version: federal_register_of_legislation:C2016C00969
Segment Type: section
Provision Reference: s 5 (pt 4/5)
Character Range: 20716–23251

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 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;
the vested and indefeasible interest of the beneficiary in so much of the increased amount as exceeds the original amount shall be taken to have arisen out of the tax avoidance scheme.
 (5) In paragraph (1)(d) a reference to the present value of a benefit that has been, will be, or may reasonably be expected to be, derived by a beneficiary of a trust estate as a consequence of a vested and indefeasible interest of the beneficiary in the relevant trust income referred to in that paragraph is a reference to:
 (a) where the benefit was derived before the end of the year of income in which the relevant trust income was derived—the amount or value of the benefit at the time at which it was derived; or
 (b) in any other case—an amount ascertained in accordance with the formula  where:
              A is the amount or value of the benefit at the time at which it was, will be, or may reasonably be expected to be, derived; and
              n is the number of years between the end of the year of income in which the relevant trust income was derived and the time referred to in component A.
 (6) For the purposes of paragraph (2)(c), 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) the amount (in this subsection referred to as the increased amount) of the share of the income of the trust estate to which the beneficiary was presently entitled exceeds the amount (in this subsection referred to as the original amount) of the income of the trust estate to which the beneficiary would have been, or could reasonably be expected to have been, presently entitled 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;
the 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