Finance Act, 1971

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Amendment of sections 443 and 444 of Income Tax Act, 1967.

16.—(1) In relation to a payment to which this section applies—

(a) subsection (1) of section 443 of the Income Tax Act, 1967 , is hereby amended—

(i) by the deletion of “or payable or accumulated”,

(ii) by the substitution of “at the time of payment” for “at the beginning of such year”, and

(iii) by the addition of the following proviso:

“Provided that—d

(a) for the purposes of this Chapter, but subject to section 444, income which, by virtue or in consequence of a settlement to which this Chapter applies, is so dealt with that it, or assets representing it, will or may become payable or applicable to or for the benefit of a child of the settlor in the future (whether on the fulfilment of a condition, or on the happening of a contingency, or as the result of the exercise of a power or discretion conferred on any person, or otherwise) shall be deemed to be paid to or for the benefit of that child, and

(b) any income dealt with as aforesaid which is not required by the settlement to be allocated, at the time when it is so dealt with, to any particular child or children of the settlor shall be deemed to be paid in equal shares to or for the benefit of each of the children to or for the benefit of whom or any of whom the income or assets representing it will or may become payable or applicable”;

(b) subsection (4) of the said section 443 is hereby amended—

(i) by the deletion of “or payable or accumulated”, and

(ii) by the deletion in paragraph (a) of “, payable, or accumulated”;

(c) section 444 of the Income Tax Act, 1967 , is hereby amended—

(i) by the deletion in paragraph (a) of “(being a child who, at the beginning of such year, is under the age of twenty-one years and is unmarried)”, and

(ii) by the substitution in paragraph (b) of “at the time of payment” for “at the beginning of such year”.

(2) The reference in paragraph (b) of the said section 444 to another sum paid to or for the benefit of a child who, at the beginning of the year of assessment in which it was paid, was under the age of twenty-one years and unmarried, shall be construed, in relation to a payment to which this section applies of any such sum, as a reference to a sum so paid to or for the benefit of a child who at the time of payment was under the age of twenty-one years and unmarried.

(3) This section applies to any payment made after the year 1970-71, except a payment made in the year 1971-72, to or for the benefit of a child born after the 6th day of April, 1971, and so made by virtue or in consequence of a settlement made before the 28th day of April, 1971.