Once it is accepted that the Beneficiary is liable (as opposed to the Trustee), then the substantive operative provisions would apply. 3. Substantive Operative Provisions The substantive operative provisions are actually quite common sense. They basically establish a logical and practical system for dealing with the following subject matter “proportionately”: “assessable income”; and “exempt income”; non-exempt “non-assessable income”. The method of apportionment takes into account the period of residence of the Beneficiary and the source of the income. When these references are omitted, the relevant proportion is individual interest of the “the Beneficiary”. It is submitted that this interest should reflect the actual amount distributed or deemed to be distributed to the Beneficiary. 4. Proposed Amendment of Prefatory Wording It is submitted that the intended role of the prefatory wording could be performed by adopting words that are neutral about the quantity or quantification of the amount or share or interest of the individual Beneficiary, e.g.,: a beneficiary of a Trust Estate who is not under any legal disability is presently “where entitled to any of the assessable or exempt income of the Trust Estate”. 4.1 “Assessable Income” Please note that I have referred to under section 6(1) of the 1997 Act, it “assessable income”, because incorporates both: and “Ordinary income”; “Statutory income”. 4.2 “Exempt Income” I have included under section 6(3) of the 1997 Act it does not form part of “exempt income”, because “assessable income”.
Once it is accepted that the Beneficiary is liable (as opposed to the Trustee), then the substantive operative provisions would apply. 3. Substantive Operative Provisions The substantive operative provisions are actually quite common sense. They basically establish a logical and practical system for dealing with the following subject matter “proportionately”: “assessable income”; “exempt income”; and “non-assessable non-exempt income”. The method of apportionment takes into account the period of residence of the Beneficiary and the source of the income. When these references are omitted, the relevant proportion is “the individual interest of the Beneficiary”. It is submitted that this interest should reflect the actual amount distributed or deemed to be distributed to the Beneficiary. 4. Proposed Amendment of Prefatory Wording It is submitted that the intended role of the prefatory wording could be performed by adopting words that are neutral about the quantity or quantification of the amount or share or interest of the individual Beneficiary, e.g.,: “where a beneficiary of a Trust Estate who is not under any legal disability is presently entitled to any of the assessable or exempt income of the Trust Estate”. 4.1 “Assessable Income” Please note that I have referred to “assessable income”, because under section 6(1) of the 1997 Act, it incorporates both: “Ordinary income”; and “Statutory income”. 4.2 “Exempt Income” I have included “exempt income”, because under section 6(3) of the 1997 Act it does not form part of “assessable income”.
Ian_Gray_Solicitors_submission.docx