Commentary on Sections Structure of Chapters Overview
2385.This Chapter rewrites the settlements legislation in Chapters 1A and 1B of Part 15 of ICTA. This legislation prevents the avoidance of tax where a person (the settlor) arranges for his or her income to be received by someone who is either chargeable to tax at a lower rate than the settlor, or not chargeable to tax at all. The legislation operates by treating the income as if it were the settlor’s. The legislation operates where:
	the settlor retains an interest in property but the income from that property is received by another;
	payments from a settlement set up by the settlor are made to a minor child of the settlor; or
	payments are made to the settlor from the settlement in the form of capital rather than income.