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INCOME TAX ASSESSMENT ACT 1936 - SECT 344

References to transfer of property or services

             (1)  A reference in this Subdivision to the transfer of property or services to a trust includes a reference to the transfer of property or services by way of the creation of the trust.

             (2)  For the purposes of this Subdivision, where an entity acquires property that did not previously exist, the property is taken to have existed immediately before the acquisition and to have been acquired from the entity who created the property.

             (3)  For the purposes of this Subdivision, property or services are to be taken to have been transferred to an entity if the property or services have been applied for the benefit of, or in accordance with the directions of, the entity.

             (4)  Without limiting the generality of subsection (3), a reference in that subsection to the application of property or services for the benefit of an entity includes a reference to the application of property or services in the discharge, in whole or in part, of a debt due by the entity.

             (5)  A reference in this Subdivision to a transfer of property or services to an entity includes a reference to a transfer made before the commencement of this Subdivision.

             (6)  A reference in this Subdivision to the transfer of property or services to a trust does not include a reference to a transfer made by the trustee of the estate of a deceased person under:

                     (a)  the terms of the deceased person's will or codicil; or

                     (b)  an order of a court that varied or modified the provisions of a deceased person's will or codicil;

unless:

                     (c)  the transfer was made in or as a result of the exercise (by the trustee or any other person) of a power of appointment or any other discretion; or

                     (d)  under subsection 345(1), the property or services are taken to have been transferred by an entity other than the trustee, instead of by the trustee; or

                     (e)  under subsection 345(5), the Commissioner treats the property or services as having been (to any extent) transferred by an entity other than the trustee, instead of by the trustee.



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