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.
Commentary on Sections Structure of Chapters Overview