Section 72: Income splitting.

(1) Where an individual taxpayer attempts to split income with another person, the Commissioner may adjust the chargeable income of the taxpayer and the other person to prevent any reduction in tax payable as a result of the income splitting. (2) In determining whether the taxpayer is seeking to split income through a partnership or trust, the Commissioner shall consider the value given by the other party to the partnership or trust. (3) In this section, “income splitting” means the transfer of income from one person to an associate or the diversion of income from one person to an associate where the reason or one of the reasons for the transfer or diversion is to lower the total tax payable upon the income of the transferor and the transferee P ART VII - SPECIAL PRINCIPLES FOR PARTNERSHIPS