(1) A reference to an
interest in a discretionary trust of a taker in default in the discretionary
trust is —
(a) the
percentage of —
(i)
the trust income; or
(ii)
the trust property,
that the taker in
default would receive in default of appointment by the trustee; or
(b) if
the taker in default would receive both trust income and trust property in
default of appointment by the trustee, the percentage of either the trust
income or the trust property that the taker in default would receive that is
the greater.
(2) Despite subsection
(1), if the Commissioner considers it appropriate to do so, an interest in a
discretionary trust of a taker in default is to be determined by the
Commissioner taking into account the rights or entitlements of the taker in
default under the trust.