(1)  A person, or a person of a class of persons, in the favour of whom or which, by the terms of a discretionary trust, capital which is the subject of the trust may be applied –

(a) in the event of the exercise of a power or discretion in favour of the person or class; or

(b) in the event that a discretion conferred under the trust is not exercised –

is, for the purposes of this section, a beneficiary of the trust.

(2)  A beneficiary of a discretionary trust is taken to own or be otherwise entitled to all of the property which is the subject of the trust unless the Commissioner determines otherwise.

(3)  For the purposes of this Chapter, any property that is the subject of a discretionary trust is taken to be the subject of any other discretionary trust –

(a) that is; or

(b) any trustee of which (in the capacity of trustee) is –

a beneficiary of it.

(4)  Subsection (3) extends to apply to property that is the subject of a discretionary trust only by the operation of that subsection.